A Fishing Specialties Retailer Concerned About the Quality of a List

question 45

Multiple Choice

A fishing specialties retailer concerned about the quality of a list of fly fishermen enthusiasts seeks to test a mailing list broker's mailing list.The retailer should ________.

• A) purchase a mailing list
• B) rent a mailing list
• C) purchase a PC-based list of homeowners and mail catalogs to selected towns
• D) seek to quickly develop its own list through a Web site

---

Definitions:

Residual Claim

A financial term referring to the right of shareholders to claim what remains of a company's assets after all debts have been paid in the event of liquidation.

Common Stockholders

Common stockholders are investors who own shares of a company's common stock, granting them the right to vote at shareholder meetings and receive dividends.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, providing for the reorganization or liquidation of the debtor's assets to pay off creditors.

Constant Growth Model

A dividend discount model that assumes dividends will increase at a constant growth rate indefinitely, useful for valuing stocks.