Which of the Following Is an Example of an Internal

question 34

Multiple Choice

Which of the following is an example of an internal search?

• A)A buyer who checks out her favourite brand of hair dryer in a local store before ordering it by mail.
• B)A customer searching the Internet for reviews on a high-end hair-straightening gadget.
• C)A store trying to maximize the sale of its own in-house brand shampoo.
• D)A consumer trying to recall the effect of a particular brand of conditioner when she had used it last.

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Definitions:

Goodwill

An intangible asset that arises when one company acquires another for a premium value, representing the excess of the purchase price over the fair market value of the identifiable assets and liabilities.

Indefinite Life

An intangible asset's useful life that is not limited to a predetermined period and could extend indefinitely.

Amortized

The process of spreading out a loan or intangible asset into a series of fixed payments over time, reducing the value of the asset or paying off the debt.

Held-To-Maturity Investment

An investment in debt securities that a company has the intent and ability to hold until maturity.