Sally Is in the New Marketing Department of a Midsized

question 94

Multiple Choice

Sally is in the new marketing department of a midsized lawn and garden company.She is working on the first marketing plan the firm has ever used.She has defined the mission and objectives,and she just finished a situation analysis for the firm.The next step is to

• A) develop an advertising plan to promote the upcoming sales.
• B) find marketing interns or hire new staff to help with implementation.
• C) create pro forma financial statements to complete the package.
• D) identify and evaluate opportunities by conducting segmentation, targeting, and positioning analysis.
• E) use the Internet, catalogs, and vendor information to draw up a list of new products.

---

Definitions:

Goodwill

An intangible asset representing the excess of the purchase price over the fair market value of an acquired company’s net assets.

Cost Method

An accounting method used to record investments at their original purchase cost, with any changes recognized only when dividends are received or upon sale of the investment.

Fair Value

The amount one would get for selling an asset or the cost to transfer a liability in a regulated exchange among market players on the date of valuation.

Impairment Loss

A recognized reduction in the recoverable amount of a fixed asset or goodwill, indicating that it exceeds its recoverable amount.