Most Consumers Realize That the Quality of Diamonds Varies,and Most

question 209

Multiple Choice

Most consumers realize that the quality of diamonds varies,and most believe the higher the price of a diamond,the higher its quality.This is an example of price influencing the perception of overall quality and therefore ________ to consumers.

• A)acceptable cost
• B)perceptual investment
• C)barter potential
• D)return on investment
• E)value

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Definitions:

Significant Influence

The capacity to affect the financial and operating policies of another entity through ownership or other means.

Operating Policies

Rules and guidelines that govern the activities and decisions of an organization.

Equity Method

An accounting technique used to record investments in other companies when the investor has significant influence but does not have full control.

Cash Surrender Value

The amount an insurance policyholder is entitled to receive if they decide to terminate the policy before it matures or an insured event occurs.