At closing on a loan the APR is higher than the interest rate because
a) the interest rate is calculated on a 360 day calendar
b) interest rates fluctuate between the application for the loan and the closing date
c) the borrower paid some extra costs to obtain the loan
d) the lender paid some costs that contributed to the loan
Answer: c) the borrower paid some extra costs to obtain the loan
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As used in the text, a global company is an organization
A. that attempts to standardize operations worldwide in most or all functional areas. B. that looks for differences among markets. C. that is transnational. D. all of the above
Which of the following is most likely a difference between advertising and sales promotion?
A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.