Some Airlines Have Run into Big Trouble When They Have

question 102

Multiple Choice

Some airlines have run into big trouble when they have tried to up the mileage levels needed to earn awards in their frequent-flyer programs.Which of the common risks associated with promotions have their actions demonstrated?

• A)the risk of devaluing the product
• B)the risk of alienating customers
• C)the risk of putting in too much time and expense
• D)the risk of facing legal action

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Definitions:

Total Debt

The sum of all short-term and long-term obligations owed by an entity, including bonds, loans, and other forms of financial liabilities.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, representing what the entity owns outright.

Creditor's Point Of View

The perspective of a lender or anyone to whom money is owed, focusing on the borrower's ability to repay the debt and interest.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.