Which element in the retail promotion mix most often has the greatest focus on the short-run?
a. public relations
b. sales promotion
c. advertising
d. personal selling
b
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A five-year project requires an additional commitment of $100,000 in net working capital. What is the present value opportunity cost associated with this investment?
A) the value of $100,000, netted against the discounted present value of the $100,000 of working capital returned at the end of the project B) the present value of $100,000, discounted at the firm's cost of capital C) no opportunity cost is involved D) $100,000
Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year European put option on Luther with a strike price of $30 is currently trading for $2.60. If the risk-free interest rate is 6% per year, then the price of a one-year European call option on Luther with a strike price of $30 will be closest to:
A) $1.30 B) $7.10 C) $2.60 D) $1.95