Air Miles Currently Offers Consumers the Option of Using Points

question 38

Multiple Choice

Air Miles currently offers consumers the option of using points collected as cash when making purchases at a point of sale:

• A) in order to lessen the time delay associated with collecting points for big-ticket items.
• B) because some of the partners would rather give out cash than merchandise.
• C) because forcing the collection of points in order to achieve non-monetary rewards did not effectively build brand equity among the partners.
• D) in order to enhance the rewarded-behaviour mechanism.

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Definitions:

Noncontrolling Interest

A minority stake in a company that is not sufficient to confer control, often reflected in the equity section of the parent company's balance sheet.

Equipment

Tangible property owned by a company that is used in its operations, such as machinery, computers, and office furniture.

Initial Value Method

An accounting method that records investments at their original cost without adjustment for changes in fair value.

Noncontrolling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, which appears in the consolidated financial statements.