An Organization Decides to Gift High-End Watches to Its Senior

question 25

Multiple Choice

An organization decides to gift high-end watches to its senior employees for completing 25 years in the organization.They are asked to choose between a high-end watch made in Switzerland and a similar high-end watch made in China.Most people choose the Swiss watch.They do not know if these particular Swiss watches are indeed better than the Chinese ones but there is a general perception that no one makes watches better than the Swiss.The above serves as an example of:

• A)hierarchy of effects.
• B)cohort effect.
• C)temporal effect.
• D)country-of-origin effect.
• E)product-extension effect.

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Definitions:

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.

Equity

The value of an ownership interest in property or a business, after deducting liabilities from assets.

Return on Sales Ratio

A financial ratio that measures the efficiency of a company in generating operating profit from its revenue.

Net Sales

The revenue a company earns from sales after subtracting the costs of returns, allowances for any damaged or missing items, and discounts.