A Rehabilitation Center Wants to Target Women in Their 20s

question 36

Multiple Choice

A rehabilitation center wants to target women in their 20s who have received some permanent disability as the result of a skiing accident. In terms of the criteria used for selecting a target segment, this market may

• A)have no expected growth.
• B)not be compatible with the company's current resources.
• C)not be worth doing since its market size is very small.
• D)not be readily accessible to the firm's marketing programs.
• E)be relatively expensive to reach.

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Definitions:

Fair-value Hedge

A hedge of the exposure to changes in the fair value of an asset or liability or an unidentified firm commitment that could affect profit or loss.

Drilling Machine

A tool used for making holes in various materials, part of machinery equipment.

Forward Contract

A financial agreement between two parties to buy or sell an asset at a predetermined future date and price.

Cash-flow Hedge

A financial strategy used to manage risk associated with variability in cash flows due to changes in exchange rates, interest rates, or commodity prices, by using derivatives.