Albert Searchware Is a Type of Search Engine Used at Company

question 173

Multiple Choice

Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determine what promotional strategy should be employed with its flagship product. It has determined that search engine software is in the growth stage of its product life cycle. Which of the following options should it employ?

• A) devote 40 percent of the promotional budget to a sales promotion that supplies the public with demonstration CDs to prove the merits of its software
• B) spend 30 percent of the budget in the effort to generate publicity for its software
• C) use the majority of its promotional budget on advertising that focuses on brand differences
• D) use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth
• E) encourage its tech support staff to emphasize the superiority of its software and its after-sale support

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Definitions:

Tax Purposes

Considerations or actions taken within financial contexts to optimize tax liability, including strategies for deductions, credits, and structuring transactions.

CCA Rate

Refers to the Capital Cost Allowance rate, which is used in taxation to represent the annual depreciation expense of a physical asset's cost.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Salvage Value

The estimated resale value of an asset at the end of its useful life, accounting for depreciation.