Kevin Works in the Public Relations Department of His Company

question 68

Multiple Choice

Kevin works in the public relations department of his company. He sends a news release about a new product offering to several newspapers and television stations. Kevin knows from past experience that even when the media use his news releases, they often release the information at inopportune times. They will also sometimes cut out what Kevin believes are the most important points to make the news fit. However, Kevin accepts these disadvantages because free publicity offers the advantage of

• A)credibility.
• B)target market awareness.
• C)timeliness.
• D)accuracy.
• E)feasibility.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Expected Long-Term Rate

An estimate of the rate of return or interest rate over a long-term investment or obligation.

Net Gain Or Loss

The overall financial result after all revenues are added and all expenses are subtracted.

Settlement Or Curtailment

Events that significantly reduce or eliminate the obligations or service period of a pension plan or other long-term benefits, requiring special accounting treatment.