Which One of the Following Actions Should a Company Take

question 82

Multiple Choice

Which one of the following actions should a company take IMMEDIATELY when it finds that its product is defective?

• A)inform buyers about it
• B)take corrective action in a timely manner
• C)stop producing the product
• D)lower the price

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Definitions:

Employee Stock Options

A benefit offered by companies to their employees, giving them the right but not the obligation to buy the company's stock at a predetermined price during a specified period.

Intrinsic Value

The inherent, actual value of an asset, independent of its market value.

Underwater

A situation where the market value of an asset is less than the amount owed on it, often used in reference to mortgages.

Expiration Date

The last day on which an option or futures contract is valid or can be exercised.