An Example of an "Essential Benefit" of a Plane Ticket

question 56

Multiple Choice

An example of an "essential benefit" of a plane ticket is _______.

• A)Getting the lowest price possible by shopping BOTS
• B)Getting a person to buy from a particular airline
• C)Getting a person from one place to another
• D)Getting a person to think about the food, liquor, and baggage handling of the airline
• E)Getting the person to buy based on unessential items in the product offering

---

Definitions:

New Borrowings

Funds that a company or government secures by entering into a new loan agreement.

Coupon Rates

The coupon rate is the annual interest rate paid on a bond, expressed as a percentage of the face value.

Similar Risk

Refers to investments or assets that have comparable levels of uncertainty and potential for financial loss or gain.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its security holders to finance its assets, integrating different sources of finance weighted by their proportional usage.