IKEA Sells a Portable Workbench Called the FARTFULL

question 248

Multiple Choice

IKEA sells a portable workbench called the FARTFULL.The product has many positive features, and in German or Swedish markets, the name describes the product's features well (fahrt meaning travel) .This brand name in the United States however, may not be as effective due to

• A)disappointment when the product fails to perform.
• B)the element of humor which makes consumers question product quality.
• C)governmental restrictions on brand names regarding bodily functions.
• D)language and cultural differences.
• E)difficulty in spelling and pronunciation.

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Definitions:

Risk-free Rate

The hypothetical yield of a risk-free investment, commonly signified by the interest rate on government bonds.

Cumulative Return

Cumulative return is the aggregate amount of money gained or lost by an investment over a set period, typically expressed as a percentage.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin; serves as a down payment on the investment.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.