History of African American Music Essay

The history of African American music has been characterized by a mixture among various forms of music. Country blues, urban blues, New Orleans Jazz, Bebop, big-band jazz, and rhythm and blues, have all influenced each other profoundly. These influences flowed back and forth among the various forms. But, black gospel music had only a very limited effect on popular styles, until a few church-trained artists, such as Sam Cooke and Ray Charles, began to incorporate gospel styling into their popular work. The result is usually described as â€Å"soul music,† a mix of blues, rhythm and blues, and gospel voices. But, if Ray Charles was one of the â€Å"originators† of soul music, â€Å"Aretha Franklin reshaped it,† by bringing even more of her gospel background to bear on secular love songs (Wade and Picardie 27). By combining popular elements with her stunning voice, her great musicianship, and the feeling for a song that she learned in church, Aretha became one of the greatest soul singers to ever live. Aretha Franklin is a well-known pop, R&B, and gospel singer. She has been nicknamed â€Å"The Queen of Soul† and is an internationally known artist and a symbol of pride in the African American community. Her popularity soared in 1967 when she released an album containing songs â€Å"I Never Loved a Man†, â€Å"Respect†, and â€Å"Baby I Love You. † Throughout her career she has achieved fifteen Grammy Awards, Lifetime Achievement Award, National Academy of Recording Arts and Sciences Legend Awards, and many Grammy Hall of Fame Awards. In 1987 she became the first woman inducted into the Rock & Roll Hall of Fame. Time magazine chose her as one of the most influential artists and entertainers of the 20th century. She sang at Dr. Martin Luther King’s funeral and at former President Bill Clinton’s inaugural party. Although she has all these accomplishments and awards there are other reasons that have driven Franklin to fame and landed her on the front cover of Time magazine on June 28, 1968. The reasons I believe allowed Aretha Franklin to become so successful are the following: Her family’s involvement with religion, the inspiring people that surrounded her, and the pain she suffered. It is clear that because her family’s involvement with religion would be one reason why Aretha Franklin became as famous as a Gospel singer. Some people would say that her love for religion is unbelievable, but after researching her childhood it is very believable. Her father, Reverend Clarence LaVaugh Franklin lived in Shelby Mississippi and preached while living the life of a sharecropper. As soon as he had enough money, he would move to Memphis, Tennessee to become a pastor of two churches. After a couple of years he attended LeMoyne College, and he studied Education and English Literature. With his education he was able to bring a more liberal view to his preaching’s. Then he moved the family to Buffalo, New York. When he had the resources, he moved the family again to Detroit, Michigan were he settled and became a pastor of a churched called New Bethel Baptist Church. He quickly became one of the most famous pastors in the city of Detroit. Aretha was two years old when they made their final move, she would grow up here and grab the emotion of Church and incorporate it into her music. Aretha Franklin’s mom, Barbara V. Skaggers, served as choir director and pianist. Aretha describes her mom as â€Å"a Superb singer, her voice was clear and distinctive†. (Franklin and Ritz, 6) Her parents taught her how to sing with great pride. This was a big issue because the late ‘50s, early ‘60s was a time of turmoil for African Americans. Her father especially tried to instill pride into her. He was a Civil Rights activist and he was a close colleague with Dr. Martin Luther King. With her parents keeping her involved in Church she was bound to become one of the world’s greatest singers. At around age 12, the father recognized Aretha’s talent as a singer. So he took her on the road with his traveling gospel show. This was important because it shows the kind of support Aretha received from her family. It was said, â€Å"She was a spellbinding performer at the age of fourteen. † (Franklin, 3) So her family really supported and inspired her to become a gospel singer. What also made her a great artist was that she had inspiring people all around her. Aretha grew up in Detroit which at the time was a rousing city or a city of hope for the African Americans running away from the brutality of the South. Though Detroit still had its problems such as race riots, many famous musicians grew up there. Also since New Bethel Baptist Church was so prominent, many musicians and political leaders used Reverend Franklin’s pulpit as a platform to sing or speak to the Black’s of Detroit. Aretha was introduced to classical music by Smokey Robinson’s sister Sylvia Burston. She listened to well known local DJ’s like Ruth Brown and Senator Brystal Brown. When Aretha was younger, she would ride her bike to the local park, and on her way home she would stop by a night club where you could here B. B. King perform. She says, â€Å"You could hear the soft sound of his guitar all the way to the sidewalk (Franklin and Ritz, 22). National and local political leaders would give there speeches. Speakers such as Dr. Adam Clayton Powell, Sr. , Dr. Martin Luther King, and Reverend Jesse Jackson would speak powerfully to the church. Aretha was directly influenced by Miriam Anderson, Sammy Davis, and Roy Wilkins. Detroit was overflowing with talent and speakers which I believe also contributed to Aretha’s success. Pain was probably what really drove Aretha Franklin’s success. As stated before, Franklin’s family was highly religious and was continually involved in the Church. But that doesn’t mean that she hadn’t been through a tremendous amount of pain. Early in life her mother and father got a divorce. The father was better suitable to raise Aretha and her four Siblings. The mother moved to Buffalo, New York and tried to make regular visits to see her children. She was supported her children in the best way she could, but when Aretha needed her, she still was not reachable. Matters became worst a few years later when Aretha’s mom dies of a stroke. Aretha described her mom by saying â€Å"she was the absolute lady† (Smith, 3). At age 15 she had her first child and two years later another would come. But Aretha still wanted to go out and be with friends, so her grandmother usually babysat for her periodically. In a time when Black Activism, Feminism, and Sexual Liberation were high, she needed to provide for herself. So when Aretha was old enough and was ready to start performing, she hired a man named Ted White to be her manager. He later became her husband. In the future she would divorce him for a famous actor which would end in divorce, too. Even though in 1968 to 1969, Franklin’s career was rising rapidly. She was still described by her Producer Jerry Wexler as â€Å"a person whose depressions runs deeper than the sea† (Ritchie Unterberger, 3). Then one of Franklin’s highest admirers, gospel giant Mahalia Jackson died. Right after her death a extremely emotional gospel album was released my Aretha â€Å"Amazing Grace† This record was considered to be one of the most emotional records of its time. Much of the pain that Aretha suffered was not really publicized, but still it had to be one of the reasons for her to have such a powerful voice. Aretha Franklin was a successful artist and still inspires musicians today. Her voice is still described as incredible. She has all the awards that she needs to show her talent. Works cited Franklin, Aretha, and David Ritz. Aretha: From These Roots. New York: Villard, 1999. Print. Carroll, Jillian. Aretha Franklin. Chicago: Raintree, 2004. Print.

African American President Essay

Between the two articles; â€Å"Hell Yeah, There’s Still Slam-Banging Black Music† by Greg Tate and â€Å"Starting Now, There Is No Such Thing as Black Music† by Cord Jefferson, they are basically discussing the beginning times of when Black Music came about and how it became labeled Black Music. Also how there should be no such thing as Black Music due to certain circumstance. Going back to when Black Music first became labeled Black Music and thinking about all the important Black leader who stood up for their rights and some who accomplished successful things that were once thought could only be accomplished by the Whites, I believe Black Music being labeled Black Music should stay the same. I also think whether to be considered Black Music or not, it will always be up to ones decision on what they consider the type of music they listen to no matter what anyone else says. What is labeled Black Music today I think has very significant and important meaning to the African American culture because just like the article â€Å"Hell Yeah, There’s Still Slam-banging Black Music,† African Americans don’t even have a country to call their own. I think having something simply as a type of music the Black’s created to call their own I don’t think should be a big deal at all and should not be changed. The article also mentioned that everything Black’s did back then became a beauty, especially their music which I think would be easy for anyone to see just knowing the history of African Americans and what they had to do just to be where they are today, slave and discrimination free. There is also plenty of successful African Americans we know about living today and from back then that went through a lot just have some recognition for the African American culture. Some of these successful African Americans not only include Musicians, but also actress and or performers, novel writers, business owners, and today a African American President. I do believe there is a such thing as Black Music simply because the music portrayed as Black Music is still continued today as well as when it first started. In the article by Cord Jefferson, he’s trying to compare basketball to the matter calling it a White’s sport because it first being played by White males, but it wouldn’t make sense being called a White’s sports today when today it’s played by many different races other than White males. Not saying that there aren’t non-Black people recording what we as Americans consider Black Music, but the larger majority of artist recording what’s labeled as Black Music today are African Americans. That’s basically how it’s been since the beginning start of Black Music and that’s how I believe it will stay.

Time Value

TIME VALUE OF MONEY 1. If you were scheduled to receive Rs 100,000 five years hence, but you wish to sell your contract note for its present value, which type of compounding would you rather have the purchaser of your contract note to use to find the purchase price, 8 percent compounded: (a) (b) (c) (d) (e) Continuously Quarterly Semi-annually Annually None of the above 2. According to the rule of 69, the doubling period is equal to (a) (b) (c) (d) (e) 0. 25 + (69/ Interest rate) 0. 35 + (69/ Interest rate) 0. 69 + (0. 35/ Interest rate) 0. 69 + (0. 25 / Interest rate) None of the above 3. For a depositor, when the frequency of compounding is increased (a) (b) (c) (d) (e) Additional gains increase Additional gains dwindle Additional gains are unaffected There are no additional gains None of the above 4. Present value interest factor of a perpetuity represents (a) (b) (c) (d) (e) Interest rate in percentage terms Reciprocal of interest rate in percentage terms Reciprocal of interest rate in decimal terms Interest rate in decimal terms None of the above 5. The present value of a perpetuity of one rupee when the interest rate is r percent is: (a) (b) (c) (d) (e) 1/r 1/ r2 1/r0. 2 r2 None of the above 1 6. The present value of an annuity due is equal to the present value of a regular annuity multiplied by : (a) (b) (c) (d) (e) r (1 + r) 1/r r(1 + r) None of the above 7. Recurring deposit in a bank is a typical example of: (a) (b) (c) (d) (e) Deferred annuity Annuity due Regular annuity Compound annuity None of the above 8. Deposits in a sinking fund is an example of: (a) ( b) (c) (d) (e) Deferred annuity Annuity due Regular annuity Either a or c None of the above 9. In a loan amortisation schedule, as the number of years increases: (a) (b) c) (d) (e) The interest amount increases The principal repayment amount increases The annual installment amount decreases Both a and c None of the above KEY 1 (d) 2 (b) 3 (b) 4 (c) 5 (a) 6 (b) 7 (b) 8 (d) 9 (a) 2 VALUATION OF STOCKS AND BONDS 1. The annual interest on a bond in relation to its prevailing market price is called its: (a) (b) (c) (d) (e) Coupon rate Promised yield Current yield Yield to maturity None of the above 2. Internal rate of return on a bond investment is its (a) (b) (c) (d) (e) Current yield Yield to maturity Holding period return Realised yield None of the above . The constant-growth dividend discount model will not produce a finite value if the dividend growth rate is: (a) (b) (c) (d) (e) Above its historical average Below its historical average Above the market capitalisation rate Below the market capitalisation rate None of the above 4. For any given stock, which of the following must be true? (a) (b) (c) (d) (e) Market value ? book value ? par value Book value ? market value ? par value Par value ? market value ? book value Par value = book value ? market value None of the above must be true 5. Limited growth prospects are indicated by (a) (b) (c) (d) (e) High dividend High P/E ratio Low dividend High dividend and low P/E ratio None of the above 3 6. Riskier stocks have (a) (b) (c) (d) (e) Higher P/E multiple Lower P/E multiple Higher variance (b) and (c) None of the above 7. Which of the following is not true? (a) (b) (c) (d) (e) Earnings-price ratio is equal to r when PVGO is zero Earnings-price ratio is less than r when PVGO is positive Earnings-price ratio is less than r when PVGO is negative Earnings-price ratio is more than r when PVGO is negative None of the above 8. An increase in the market value of a company indicates: (a) (b) (c) (d) (e) Increase in profitability Increase in revenues Increase in future prospects All the above None of the above 9. Intrinsic value of a security is its: (a) (b) (c) (d) (e) DCF value Book value Real value Market capitalization value None of the above 10. Which one of the following is not a major driver of growth? (a) (b) (c) (d) (e) Sales growth ratio Ploughback ratio Return on equity All the above None of the above 11. In the case of stocks with lower P/E multiples: (a) Liquidity is low (b) Required return is high (c) Risk is high 4 d) All the above (e) None of the above 12. All trades on NSE are guaranteed by: (a) (b) (c) (d) (e) SEBI NSDL NSCC CDSL None of the above 13. In respect of the sample shares, sensex reflects the movement of: (a) (b) (c) (d) (e) Average total market value of the floating stocks Average market value of the floating stocks times a fixed multiple Average capitalisation of the issued and paid up stocks Average aggregate market value of the subscribed stocks None of the above Formatted: Font color: Auto Formatted: Font color: Auto Formatted: Font color: Auto 14. The book value of a firm? s equity is nothing but the book value of its assets minus the book value of its liabilities: a. True b. False 15. Market value of a firm has to be at least equal to its: (a) (b) (c) (d) (e) Book value Cash and bank balance Net asset value Lowest of the above None of the above 16. Intrinsic value of a security is its: (a) (b) (c) (d) (e) Market value Book value Economic value Resale value None of the above 5 KEY 1 (c) 12 (c) 2 (b) 13 (a) 3 (c) 14(a) 4 (e) 15(e) 5 (d) 16(c) 6 (d) 7 (c) 8 (e ) 9 (a) 10 (a) 11 (d) 6 RISK AND RETURN 1. Variance will always be (a) (b) (c) (d) (e) Positive Negative Variable Very high None of the above 2. A normal distribution is completely characterised by (a) (b) (c) (d) (e) Expected return and standard deviation Required return and variance Expected return and range Standard return and expected variance None of the above 3. If a variable is normally distributed what percentage of the values fall within a band of one standard deviation on either side of the arithmetic mean. (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the above 4. If a variable is normally distributed what percentage of values will fall within a band of three standard deviations on either side of the arithmetic mean? (a) (b) (c) (d) (e) 95. 4 percent 68. 3 percent 99. 7 percent 57. 5 percent None of the above 5. Which of the following is true? (a) (b) (c) (d) The geometric mean is always less than the arithmetic mean The geometric mean is always greater than the arithmetic mean The geometric mean and the arithmetic mean are always the same The geometric mean is always less than the arithmetic mean, except when all the return values being considered are equal (e) None of the above 7 . When the probability distribution of rate of return of a security is defined, the possible outcomes: (a) (b) (c) (d) (e) Should be mutually exclusive Should be collectively exhaustive Should not add to more than 1 All the above None of the above 7. Preparing the probability distribution of rate of return of a security is: (a) An objective exercise based on the pre vailing market conditions (b) An objective exercise based on the past history of the securities performance (c) An objective exercise based on the future prospects of the security. d) A subjective exercise (e) None of the above 8. While analysing the returns of a security based on a continuous probability distribution, probabilities are assigned to: (a) (b) (c) (d) (e) Individual points on the curve Intervals between two points on the curve The gradient between any two referenced points on the curve Either b or c None of the above 9. Diversification eliminates risk if returns are: (a) (b) (c) (d) (e) Not perfectly positively correlated Perfectly positively correlated Perfectly negatively correlated All the above None of the above 10. If the return on a security is negatively correlated with the market return, its beta is: (a) (b) (c) (d) (e) Less than zero Less than one but more than zero More than one Independent of the market return None of the above 8 11. To judge creditworthiness of firms, leading international rating firms use debt ratios expressed in: (a) (b) (c) (d) (e) Market values Book values Real values Discounted values None of the above 12. A defensive stock is characterised by: (a) (b) (c) (d) (e) Negative beta Positive beta less than one Positive beta more than one Beta equal to one None of the above 3. When you want to know the central tendency of a series of returns, the arithmetic mean is the appropriate measure: a. True b. False 14. For a given series of returns geometric mean is always greater than the Arithmetic mean: b. True b. False 15. Business risk of a firm : (a) (b) (c) (d) (e) Is the risk of the firm without financial leverage Depends on cyclicality of revenues Depends on operating lev erage All the above None of the above 16. Debt rating firms such as Standard & Poor? and Moody? s use debt ratios expressed in market values to judge credit worthiness: a. True b. False KEY 1 (a) 12 (b) 2 (a) 13(a) 3 (b) 14(b) 4 (c) 15(d) 5 (d) 16(b) 9 6 (d) 7 (d) 8 (b) 9 (c) 10 (a) 11 (b) TECHNIQUES OF CAPITAL BUDGETING 1. As discount rate increases, NPV of a simple project (a) (b) (c) (d) (e) Increases at a decreasing rate Decreases at an increasing rate Decreases at a decreasing rate Decreases at a steady rate None of the above 2. When time-varying discount rates are involved the suitable investment criterion is (a) (b) (c) (d) (e) NPV IRR MIRR Discounted Pay Back Period None of the above 3. If initial investment is Rs. 10 million and NBCR is 0. 2, the NPV is (a) (b) (c) (d) (e) Rs. 50 million Rs. 2 million Rs. 8 million Rs. 5 million None of the above 4. IRR is unreliable for ranking projects when (a) (b) (c) (d) (e) Life of the projects are long Projects have different patterns of cash flow Projects have decreasing cash flows Both a and c None of the above . If you do not know the discount rate for a project, the right investment criterion to be used will be (a) (b) (c) (d) (e) IRR MIRR NPV BCR None of the above 10 6. The IRR of a capital investment (a) Changes when the cost of capital changes (b) Is equal to annual cash flows divided by the project? s cost when the cash flows are an annuity (c) Is similar to the yield to maturity on a bond (d) Must exceed the cost of capital in order for the firm to accept the investment (e) Both b and d are true (f) Both c and d are true 7. The modified internal rate of return (MIRR) is superior to the regular IRR because: (a) MIRR modifies IRR to reflect project risk (b) While IRR may be negative, MIRR can never be negative (c) MIRR assumes that project cash flows are reinvested at the cost of capital whereas the regular IRR assumes that the project cash flows are reinvested at the project? s own IRR (d) The problem of multiple rates does not exist with MIRR (e) c and d (f) b, c, and d 8. When a firm takes on a new project with a positive NPV, it will necessarily increase the value of the firm. . True b. False 9. The NPV rule assumes that the intermediate cash flows of a project are reinvested at a rate equal to: (a) (b) (c) (d) (e) The cost of capital The cost of equity The internal rate of return The current yield None of the above 10. The modified internal rate of return (MIRR) is superior to the regular IRR because: (a) (b) (c) (d) (e) It assumes that project cash flows are reinvested at the cost of capital Reinves tment cost of capital is more realistic It is not a subjective measure both a and b None of the above 1 11. Which of the following is true: (a) IRR rule assumes that intermediate cash flows are reinvested at the cost of capital (b) The IRR rule cannot distinguish between lending and borrowing (c) IRR is difficult to apply when short-term interest rates from long-term interest rates (d) IRR cannot be used when the cost of capital is not known (e) None of the above KEY 1 (c) 2 (a) 3 (b) 4 (b) 5 (a) 6 (f) 7 (e) 8 (b) 9 (a) 10 (d) 11 (b) 12 PROJECT CASH FLOWS 1. Which one of the following may not be generally relevant in establishing the time horizon for cash flow analysis? (a) (b) (c) (d) (e) Investment planning horizon of the firm Physical life of the plant Technological life of the plant Product market life of the plant None of the above 2. While defining the cash flows on the investment side, interest cost is not considered because: (a) (b) (c) (d) (e) It is a proxy to the rate of return Historical interest rates have no relevance It is included in the cost of capital Both b and c None of the above . All incidental effects of a project on the rest of the firm should be considered while estimating project cash flows because: (a) (b) (c) (d) (e) It may have a complementary relationship with the existing activities It may have a competitive relationship with the existing activities It may have a supplementary relationship with the existing activities Both a and b None of the above 4. The cost created for the rest of the firm as a consequence of undertaking a project is: (a) (b) (c) (d) (e) The company weighted average cost of capital The marginal cost of capital The project weighted average cost of capital An opportunity cost None of the above 5. For purposes of investment analysis, what matters is: (a) (b) (c) (d) Overhead costs allocated to the project Incremental overhead costs attributable to the project Weighted average overhead costs attributable to the project Projected average overhead costs attributable to the project 13 (e) None of the above 6. Which of the following may not generally result in underestimation of project cash flows? (a) (b) (c) (d) (e) Ignoring intangible benefits Under estimation of salvage values Overlooking the value of future options Under estimation of project cost of capital None of the above 7. Product cannibalisation involves (a) (b) (c) (d) (e) Erosion of sales of an existing product due to own new product Erosion of sales of an existing product due to an own older product Erosion of sales due to a competitor? s existing product Erosion of sales due to a competitor? new product None of the above 8. Which one of the following is a sunk cost (f) (g) (h) (i) (j) R & D expenditure not leading to a product Preliminary survey expenses before setting up the plant Sponsorship expenses of Indian cricket team Contribution to Prime Ministers Relief Fund None of the above 9. In the financing side of a project, explicit funds include (k) Trade creditors (l) Bank overdraft (m) Provision for income tax (n) Provis ion for proposed dividend (o) None of the above KEY 1 (b) 2 (c) 3 (d) 4 (d) 5 (b) 6 (d) 7 (a) 8 (b) 9 (b) 14 RISK ANALYSIS IN CAPITAL BUDGETING 1. While evaluating the risk of a project, an undiversified shareholder is more concerned about: (a) (b) (c) (d) (e) Stand-alone risk Corporate risk Market risk All the above None of the above 2. In which of the following, values of a set of variables are varied concurrently by specified values? (a) (b) (c) (d) (e) Scenario analysis Sensitivity analysis Simulation analysis Decision tree analysis None of the above 3. In which of the following, correlations between variables are to be handled properly? (a) (b) (c) (d) (e) Scenario analysis Sensitivity analysis Simulation analysis Decision tree analysis None of the above 4. A lower price: (a) (b) (c) (d) (e) Increases potential demand Decreases the break-even level Increases the break-even level Both a and c None of the above 5. Which one of the following is the best way of incorporating risk in the decision process? (a) (b) (c) (d) Certainty equivalent Pay back period requirement Risk-adjusted discount rate Judgmental evaluation 15 (e) None of the above 6. Financial break even occurs at the point of time when the (a) (b) (c) (d) (e) Firm starts making operating profits Accumulated losses are wiped off Present value of investment becomes zero Cash flows become steady None of the above . Randomly selected values are used in (a) (b) (c) (d) (e) Sensitivity analysis Break even analysis Decision tree analysis Simulation analysis None of the above rate 8. The NPV of a simple project decreases at a constant rate as the discount increases. a. True b. False 9. When the cash flows of a project are perfectly correlated, the standard deviation of the NPV is: n (a) ? t=1 A _____ – I ( 1+ i)t ? t _____ – I ( 1+ i)t ? t _____ ( 1+ i)t 1/2 n (b) ? t=1 n (c) ? t=1 n (d) ? t=1 ? _____ (1+ i)2t 2 t (e) None of the above 16 10. An investor for whom the certainty index is less than the expected value, is (p) (q) (r) (s) (t) Risk loving Risk averse Risk neutral Risk allergic None of the above KEY 1 (b) 2 (a) 3 (c) 4 (d) 5 (e) 6 (c) 7 (d) 8 (b) 9 (c) 10 (b) 17 THE COST OF CAPITAL 1. Which of the following is not reflected in the company cost of capital? (a) (b) (c) (d) (e) Rate of return expected on a proposed investment Business risk of the existing assets Risk of the existing capital structure All the above None of the above 2. A firm has an existing bank loan contracted at 10 percent a year back. The bank has since reduced the lending rates and the company, if it wants, can raise a fresh loan from the bank at 9 percent. While determining the WACC, the cost of bank loan for the company would be: (a) (b) (c) (d) (e) 10 percent 9 percent Weighted average of the old and new bank interest rates Either b or c None of the above 3. The correct cost of debt to be used in calculation of the average cost of capital is the: (a) (b) (c) (d) (e) Marginal cost of debt Yield to maturity Average cost of debt Either a or b None of the above 4. Cost of retained earning is (a) (b) (c) (d) (e) Nil Nearly equal to cost of depreciation Nearly equal to cost of equity Nearly equal to average cost of debt None of the above 5. In determining cost of capital using „Bond yield plus risk premium approach? the risk premium is set at (a) 2 % of the bond yield (b) 4 % of the bond yield (c) 1% of the bond yield if the latter is more than 12 % 18 (d) Both a and c (e) None of the above 6. The chief merit of using book value proportions to calculate WACC is that (a) (b) (c) (d) (e) It is unbiased It is simple It is more realistic It is based on audited figures None of the above . For a given capital structure, the levels of total new financing at which the cost of the new components would change is called (a) (b) (c) (d) (e) Turning points Breaking points Inversion points Relevant points None of the above 8. When the marginal cost of capital is the same for two projects and there are no funds constraints, you will select (a) (b) (c) (d ) (e) Project with the shorter payback period Project with the higher IRR Both the projects if NPVs are positive Preferably project with higher IRR and higher NPV None of the above 9. Which of the following conditions should be satisfied for using WACC for evaluating new investments? (a) The risk of new investments is the same as the average risk of existing investments (b) The cost of equity is greater than the cost of debt (c) The capital structure of the firm will not be affected by the new investments (d) a and c (e) None of the above 19 10. The risk-adjusted discount rate method assumes that the risk increases with time at: (a) (b) (c) (d) (e) Increasing rate A constant rate Decreasing rate A random rate None of the above KEY 1 (a) 2 (b) 3 (a) 4 (c) 5 (e) 6 (b) 7 (b) 8 (c) 9 (d) 10 (b) 20 CAPITAL BUDGETING: EXTENSIONS 1. General Electric? s Stoplight Matrix is used for: (a) (b) (c) (d) (e) Resource allocation Identification of worthwhile projects Abandoning worthless projects Scaling up corporate efficiency None of the above 2. Which of the following conditions must be satisfied by a capital budget to be meaningful and viable? (a) (b) (c) (d) (e) It must be compatible with the resources of the firm It must be controllable It must be endorsed by executive management All the above None of the above . A company? s debt equity ratio is 1:1. It proposes to undertake an aerodrome project with proposed debt equity ratio of 3:1. The discount rate that should be applied to the project should be: (a) (b) (c) (d) (e) Weighted average cost of debt Marginal cost of debt Incremental discount rate Adjusted discount rate None of the above 4. Which of the following are options embedded in real life projects? (a) (b) ( c) (d) (e) Incremental option Flexibility option Abandment option All the above None of the above 5. Which of the following may not result in positive NPV projects? a) (b) (c) (d) (e) Marketing reach Government policy Customer affluence Product differentiation None of the above 21 6. Which of the following is a necessary condition to ensure success in business strategies? (a) (b) (c) (d) (e) Intuition Vision of the leader Rigorous analysis Sponsorship None of the above 7. In determining the adjusted present value, tax shields on financing effects are discounted at (a) (b) (c) (d) (e) Opportunity cost of equity Marginal cost of debt Weighted average cost of debt Average of a and b None of the above KEY 1 (a) 2 (d) 3 (d) 4 (d) 5 (c) 6 (c) 7 (b) 22 MARKET EFFICIENCY AND FINANCING DECISIONS 1. There will be no concern about transfer of wealth from existing to new shareholders if new securities are issued (a) (b) (c) (d) (e) above market price at market price at par by book building method None of the above 2. Market efficiency implies that: (a) (b) (c) (d) (e) Errors in the market prices are biased Market price equals intrinsic value Price deviations cannot be predicted It is not possible to identify over and under-valued stocks None of the above 3. Market efficiency exists because; (a) (b) (c) (d) (e) Portfolio managers are doing their job well There is keen competition among market participants New information cannot be predicted in advance All the above None of the above 4. Returns over horizons of a few weeks or months would be positively correlated because of the action of: (a) (b) (c) (d) (e) Noise traders Arbitrageurs Speculators Both a and b None of the above 5. Which of the following is a calendar anomaly? (a) (b) (c) (d) (e) Week end effect January effect Budget effect Both a and b None of the above 23 6. Serial correlation tests, run tests and filter rules tests have been commonly employed to verify: (a) (b) (c) (d) (e) Strong form of efficient market hypothesis Semi- strong form of efficient market hypothesis Weak form of efficient market hypothesis Both a and b None of the above 7. In an efficient market, the market price of a security is: (a) (b) (c) (d) (e) An unbiased predictor of its intrinsic value An unbiased estimate of its intrinsic value A logical mean of the market participants? expectations The expected value of a normal distribution None of the above 8. Study of market efficiency teaches corporates that: (a) Manipulation of earnings does not pay (b) It is advantageous to issue debt rather than equity (c) The objective of corporate finance should be to maximise the market value of the firm in due course (d) Equity issues should not be deferred because the stock price was significantly low in recent periods (e) None of the above 9. In an efficient market, an unbiased estimate of the intrinsic value of a security can be obtained from its: (a) (b) (c) (d) (e) Market value Book value Cash value Capital value None of the above 0. According to Efficient Market Theory, price changes cannot be forecast since: (a) Inflation cannot be predicted with any acceptable degree of accuracy (b) New information cannot be predicted in advance. (c) Insiders and other vested interest groups will not allow the market to become efficient (d) All the above (e) None of the above 24 11. Though elegant in theory, bulk of the results of empirical studies have fa iled to support Efficient Market Hypothesis: a. True b. False 12. A puzzling calendar anomaly is : (a) (b) (c) (d) (e) The Mid Summer Effect The Easter Effect The January Effect The March Effect None of the above 13. Noise trade is always supported by: (a) (b) (c) (d) (e) Efficient Market Hypothesis Rational expectations theory Technical analysis Fundamental analysis None of the above KEY 1(b) 2 (e) 3 (d) 4 (d) 5 (d) 6 (c) 7 (b) 8 (a) 9(a) 10(b) 11(b) 12(c) 13(e) 25 SOURCES OF LONG-TERM FINANCE 1. As per law the issue price of a share cannot be: (a) Less than the par value (b) Less than the issue price of any preceding public offer. c) More than twenty times the average P/E multiple for the past years. (d) More than 20 times the book value (e) None of the above 2. When a company? s net profit doubles, that has to result in: (a) (b) (c) (d) (e) Increase in market value Increase in book value Decrease in cost of equity Both a and b None of the above three 3. Which one of the following is known not to have any effect on the market price of stocks? (a) (b) (c) (d) (e) Current earnings Growth prospects Risk Company size None of the above 4. Which one of the following is generally viewed with skepticism by the stock market? a) (b) (c) (d) (e) Debenture issue Equity issue Soliciting public deposits Not declaring large dividends None of the above 5. If you are the CEO of a company, which one of the following will you decide to skip in a lean year? (a) (b) (c) (d) Declaring preference dividend Declaring equity dividend Declaring bonus issue Putting on hold new projects 26 (e) None of the above 6. The par value of an equity share is the value: (a) (b) (c) (d) (e) As stated in the memorandum The price at which it is issued The price at which it will be repurchased Both a and c None of the above . The income on which the equity holders have a residual claim is: (a) (b) (c) (d) (e) Profit after tax Profit after tax plus equity dividend Profit after tax less equity dividend Profit after tax less preferred dividend None of the above 8. When the financial performance of a company is impressive, the board of directors, if they so wish, can: (a) (b) (c) (d) (e) Refuse to pay equity dividend Cannot refuse to pay equity dividend without shareholders? approval Refuse to pay preference dividend Both b and c None of the above 9. Issue expenses are the least in the case of: (a) (b) (c) (d) (e) Public issue of equity Public issue of debentures Rights issue Private placement None of the above 10. According to CAPM, going in for debt financing: (a) (b) (c) (d) (e) Decreases the cost of equity Increases the cost of equity Does not affect the cost of equity Either a or c None of the above 27 KEY 1 (a) 2 (b) 3 (e) 4 (b) 5 (d) 6 (a) 7 (d) 8 (a) 9 (c) 10 (b) 28 RAISING LONG TERM FINANCE 1. IPO refers to the first issue of: (a) (b) (c) (d) (e) Equity Debentures Preference shares Either a or b None of the above . The first option to acquire the equity investment held by a VC is typically give to: (a) (b) (c) (d) (e) The public The promoters of the VC fund The associates of the VC fund The promoters of the assisted firm None of the above 3. A rights issue generally tends to result in: (a) (b) (c) (d) (e) Increase in return on equity Decrease in earnings per share Decrease in return on investments Increase in earnings pe r share None of the above 4. In which of the following the identity of investors is generally known at the time of approval of shareholder approval itself? a) (b) (c) (d) (e) Private placement Preferential allotment Convertible debentures GDR None of the above 5. Lead manager of a public issue can be likened to (a) (b) (c) (d) (e) master of ceremonies best man in a wedding conductor of an opera producer of a movie None of the above 29 6. Which one of the following is not a potential advantage that prods a company to go public? (a) (b) (c) (d) (e) Accountability Respectability Investor recognition Liquidity None of the above 7. Composite application form sent along with letter of offer of a rights issue includes (a) (b) (c) (d) (e) a form showing the number of rights shares the shareholder is entitled to a form through which rights can be renounced in favour of someone a form for rejecting the offer both a and b None of the above 8. Wealth of an existing shareholder per se is not affected by the right offering if he (a) (b) (c) (d) (e) sells the rights does not participate in the right exercises the rights partially both a and b None of the above 9. Before a company makes a preferential allotment (a) (b) (c) (d) (e) it must pass a special resolution obtain special approval under section 81(1A) from government both a and b either a or b None of the above 10. Dilution of proportional ownership can be avoided by making (a) (b) (c) (d) (e) private placement debenture issue a rights issue either b or c None of the above 11. Book building is used to help in better (a) Price discovery (b) Retail participation 30 (c) Institutional participation (d) Investor communication (e) None of the above 12. In any IPO, there is infusion of capital in the company: a. True b. False 13. Who among the following is not an eligible QIB? (a) (b) (c) (d) (e) State Industrial Development Corporations Mutual Funds Scheduled commercial banks Foreign institutional investors registered with SEBI None of the above 14. If a company? s project has not been appraised by financial institutions or scheduled commercial banks, it is not eligible for an IPO: a. True b. False 15. Retail investors cannot change their bids during the bidding process in: (a) (b) (c) (d) (e) French auction Book building Commodity auction All the above None of the above 16. In a preferential allotment of shares, the lock-in period is applicable to : (a) (b) (c) (d) (e) 17. QIPs : (a) (b) (c) (d) (e) Fetch a good price Entail minimal cost Can be completed very quickly All the above None of the above The appraising bank FII Lead Manager of the investment bank. The promoters None of the above 31 18. To get an anchor investor you should look among: (a) (b) (c) (d) (e) QIBs QIPs FIIs HNIs None of the above 19. The focus area for an Investment Bank is : (a) (b) (c) (d) (e) Investment Commercial banking Merchant banking All the above None of the above 0. In India, a trader who performs market-making function for a security is not permitted to engage in proprietary trading function in the same security: a. True b. False KEY 1 (a) 12(b) 2 (d) 13(e) 3 (b) 14(a) 4 (b) 15(a) 5 (c) 16(d) 6 (a) 17(d) 7 (d) 18(a) 8 (a) 19(c) 9 (d) 20(b) 10 (d) 11 (a) 32 CAPITAL STRUCTURE AND FIRM VALUE 1. According to net operating income approach increase in leverage will affect (a) (b) (c) (d) (e) cost of debt cost of equity overall capitalisation rate both a and b None of the above . According to net income approach, as leverage decreases (a) (b) (c) (d) (e) average cost of capital decreases average cost of capital increases cost of debt increases cost of equity decreases None of the above 3. According to the Merton Miller argument, the original MM proposition which says that financial leverage does not matter in a tax-free world (a) (b) (c) (d) (e) is valid in a world where both corporate and personal taxes exist is not valid in a world where both corporate and personal taxes exist is valid n a world where the corporates are exempt from taxes is valid in a world where corporate taxes exist but no personal taxes exist None of the above 4. Which one of the following statements is true? (a) (b) (c) (d) (e) Net operating income approach and MM? s first proposition are identical Net income approach and MM? s second proposition are identical Net operating income a pproach and traditional approach are identical Net income approach and MM? s first proposition are identical None of the above 5. One of the assumptions underlying the MM proposition is that firms can be grouped into equivalent risk classes based on their (a) (b) (c) (d) (e) systematic risk financial risk business risk both a and b None of the above 33 6. According to the signaling theory of capital structure, the pecking order of financing is as follows: (a) (b) (c) (d) (e) External equity finance, debt finance and internal finance Internal finance, external equity finance and debt finance Debt finance, external equity finance and internal finance Retained earnings, debt finance and external equity finance None of the above . According to Myers, the pecking order of financing can be fully explained if there is (a) (b) (c) (d) (e) asymmetric information and divergent expectations homogeneous expectations and symmetric information rational expectations reasonable expectations None of the above 8. According to the net operating income approach, the overall capitalisation rate and the cost of debt remain constant for all degrees of leverage: a. True b. False 9. According to the rational expectations hypothesis, what matters in economics is the congruence between what actually happens and what was supposed to happen. . True b. False 10. According to the net income approach, the average cost of capital remains constant for all levels of financial leverage. a. True b. False 11. The relationship between the return on equity (ROE), return on investment (ROI), cost of debt (r), debt-equity ratio (D/E), and tax rate (t) is as follow (a) (b) (c) (d) (e) ROE = [ROI +(ROI –r) D/E ] (1-t) ROE = [ROI – (ROI –r) D/E ] (1-t) ROE = [ROI +(ROI + r) D/E ] (1-t) ROE = [ROI +( r- ROI ) D/E ] (1-t) None of the above 34 KEY 1 (b) 2 (b) 3 (a) 4 (a) 5 (c) 6 (d) 7 (a) 8 (a) 9 (b) 10 (b) 11 (a) 35 CAPITAL STRUCTURE DECISIONS 1. Financial risk is minimum in (a) (b) (c) (d) (e) debt issue IPO rights equity issue both b and c None of the above 2. Financial slack is more valuable to a firm with (a) (b) (c) (d) (e) poor growth opportunities more intangible assets high liquidity less intangible assets None of the above 3. A powerful defence against bankruptcy is (a) (b) (c) (d) (e) flexibility higher growth expansion modernisation None of the above 4. A company should avoid financial hype in an efficient market because of the dominant role of (a) (b) (c) (d) (e) SEBI lead steers aggressive investors conservative investors None of the above 5. Which of the following is an indirect cost of bankruptcy? (a) Due to myopia, managers may sacrifice actions to build value in the long run (b) Legal and administrative costs are quite high (c) Arguments between shareholders and creditors delay the liquidation of assets (d) If assets are sold under distressed conditions, they may fetch a price significantly less than their economic value 36 e) None of the above 6. Weakened commitment of employees, customers, suppliers, distributors, and other stakeholders is a direct cost of financial distress a. True b. False 7. Creditors face the problem of moral hazard when they lend to a firm that has a large outstanding debt in relation to the value of its assets. a. True b. False 8. The tradeoff theory explains satisfactorily why profitable firms like Hi ndustan Lever depend so little on debt. a. True b. False 9. According to the rational expectations hypothesis what matters in economics is what was rationally expected to happen: a. True b. False KEY 1 (d) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (b) 8 (b) 9 (b) 37 DIVIDEND POLICY AND FIRM VALUE 1. Walter model assumes that for financing future investments, a firm will rely only on (a) (b) (c) (d) (e) debentures term loans retained earnings external equity None of the above 2. Value of a firm according to MM depends solely on its (a) (b) (c) (d) (e) equity borrowing capacity earning power dividend payout ratio None of the above 3. As per Gordon model when the rate of return is less than the discount rate, as the dividend payout ratio increases, price per share (a) (b) (c) (d) (e) increases decreases remains unchanged at first increases and then decreases None of the above 4. Radicalists support (a) (b) (c) (d) (e) low dividend payout high dividend payout steady dividend payout stock splits None of the above 5. According to the Walter model, the price of a share is equal to : D ——k (E-D) r/k ———-k (a) + 38 (c) D ——-k _ (E-D) r/k ————-k (E +D) r/k —————-k (c) D ———k + (d) D ——-k + E-D)r/k ————–k (e) None of the above 6. According to the traditional position on the impact of dividend policy on the firm value, the firm value is positively influenced by: (a) (b) (c) (d) (e) A liberal payout policy A conservative payout policy Slow but s teady increase in dividends Higher retention ratio None of the above 7. MM? s view on dividend policy and firm value is: (a) (b) (c) (d) (e) Traditional Radical Academic Subjective None of the above KEY 1 (c) 2 (c) 3 (a) 4 (a) 5 (a) 6 (a) 7 (c) 39 DIVIDEND DECISION 1. Which one of the following is not a plausible reason for paying dividends? a) (b) (c) (d) (e) Investor preference for dividends Information signaling Temporary excess cash Clientele effect None of the above 2. According to the Lintner? s model of corporate dividend behaviour, the current dividend can be explained (a) (b) (c) (d) (e) as a weighted average of past earnings in terms of current earnings and previous year dividend solely in terms of previous year dividend both a and b None of the above 3. Dividend declaration is usually made in (a) (b) (c) (d) (e) board meeting annual general meeting special shareholder meeting b or c None of the above . Bonus shares can be issued out of (a) (b) (c) (d) (e) revaluation rese rve share premium collected in cash excess cash balance accounts receivable None of the above 5. In a stock-split (a) (b) (c) (d) (e) earnings are capitalised EPS remains unchanged book value declines both a and c None of the above 40 6. Which of the following can be a motivator for share buy backs? (a) (b) (c) (d) (e) Price stability Idle cash Tax advantage All the above None of the above 7. The post-buyback debt-equity ratio of company should not exceed : (a) (b) (c) (d) (e) 2 . : 1 1. 33 : 1 1. 0 : 1 1. 0 : 2 None of the above 8. According to Graham and Dodd the weight attached by the market to dividends is equal to: (a) (b) (c) (d) (e) five time the weight attached to retained earnings four times the weight attached to retained earnings three times the weight attached to retained earnings half the weight attached to profit after tax None of the above 9. According to the Lintner model (a) (b) (c) (d) (e) Dt – Dt-1 = c ( r EPSt – Dt-1 ) Dt – Dt-1 = c ( Dt†“1 – r EPSt ) Dt = Dt-1 + c ( EPSt – r Dt-1) Dt = r Dt-1 None of the above 10. According to John Lintner, managers are concerned more about the absolute level of dividend than the change in dividend. a. True b. False 11. Junk bonds are bonds that have a credit rating of: (a) (b) (c) (d) (e) BBB or lower BB or lower B or lower C or lower None of the above 41 12. In which stage of the dividend life cycle, informational asymmetry is moderate? (a) (b) (c) (d) (e) Decline Rapid growth Infancy Maturity None of the above 13. A share buyback programme effectively: (a) (b) (c) (d) (e) Decreases the EPS Decreases the P/E ratio Increases the share price All the above None of the above 4. As per SEBI guidelines, buyback of shares can be done through the Dutch auction route: b. True b. False KEY 1 (c) 12(b) 2 (d) 13(b) 3 (a) 14(a) 4 (b) 5 (c) 6 (d) 7 (a) 8 (b) 9 (a) 10 (b) 11 (b) 42 WORKING CAPITAL POLICY 1. Which portion of total capital generates most of the profits? (a) (b) (c) (d) (e) Fixed assets Investments Working capital Paid-up capital None of the above 2. Which on e of the following is not part of working capital? (a) (b) (c) (d) (e) Inventory Receivables Instalments of term loans due within the next twelve months Investments None of the above . The life span of current assets does not depend on: (a) (b) (c) (d) (e) Sales Production Maintenance Synchronisation among them None of the above 4. The working capital needs of a firm are not influenced by: (a) (b) (c) (d) (e) Nature of business Seasonality of operations Production policy Market conditions None of the above 5. A firm that manages with a small amount of inventory is said to be following a: (a) (b) (c) (d) (e) Aggressive policy Conservative policy Defensive policy Survival policy None of the above 43 6. To be consistent with the „The Matching Principle? fluctuating current assets must be supported by: (a) (b) (c) (d) (e) Equity Debentures Short-term bank borrowings Long- term bank borrowings None of the above 7. A negative cash cycle for a company necessarily implies: (a) (b) (c) (d) (e) Poor management of credit sales Poor management of receivables Poor management of trade creditors Poor management of profitability None of the above 8. Which one of the following typically needs the least working capital? (a) (b) (c) (d) (e) A tea plantation A hotel A construction company A departmental store None of the above . Which one of the following will decrease the length of the cash cycle? (a) (b) (c) (d) (e) Increase in inventory period Increase in accounts receivable period Increase in accounts payable period Decrease in accounts payable period None of the above 10. If you subtract net working capital from gross working capital, you will get: (a) (b) (c) (d) (e) Current assets Current liabilities Fixed assets Net profit None of the above KEY 1 (e) 2 (d) 3 (c) 4 (e) 5 (a) 6 (c) 7 (e) 8 (b) 9 (c) 10 (b) 44 CASH AND LIQUIDITY MANAGEMENT 1. The principal tool of cash management is: (a) (b) (c) (d) (e) Short-term cash forecasting Maximising daily collections Maximising the payment slack Obtention of fine rates None of the above 2. In cash forecasting, which one of the following analysis is generally used? (a) (b) (c) (d) (e) Sensitivity analysis Scenario analysis Simulation analysis Decision tree analysis None of the above 3. The method that is generally used for long-term cash forecasting is: (a) (b) (c) (d) (e) Adjusted net income method Adjusted receipt and payment method Average income and expenditure method Cash deficit gap method None of the above . Which of the following, according to Keynes, is not a motive for holding cash (a) (b) (c) (d) (e) Speculative motive Psychological motive Precautionary motive Transaction motive None of the above 5. Float is the difference between: (a) (b) (c) (d) (e) Available balance and the ledger balance Available balance and the amount yet to be collected Total available balance an d the bank balance Total available balance and the balance in hand None of the above 45 6. Net float is: (a) (b) (c) (d) The difference between disbursement float and collection float The sum of disbursement float and collection float The difference of the available balance and balance on hand Either a or c 7. Which of the following is the most important criterion for evaluating various investment instruments? (a) (b) (c) (d) (e) Safety Yield Liquidity All the above None of the above 8. The most popular mutual fund schemes for investing short- term surpluses are: (a) (b) (c) (d) (e) Equity schemes Balanced schemes Debt schemes Hybrid schemes None of the above 9. Commercial paper is a: (a) (b) (c) (d) (e) Secured bill of exchange Unsecured bill of exchange Secured promissory note Unsecured promissory note None of the above 10. Which one of the following is secured in nature? (a) (b) (c) (d) (e) Certificate of deposit Commercial paper Treasury bill Ready forward None of the above KEY 1 (a) 2 (b) 3 (a) 4 (b) 5 (a) 6 (b) 7 (d) 8 (c) 9 (d) 10 (d) 46 CREDIT MANAGEMENT 1. Most commonly, the trade cycle for a business is financed partly by: (a) (b) (c) (d) (e) The sellers The buyers The financiers All the above None of the above 2. A bill of exchange contains a: (a) (b) (c) (d) (e) Unconditional ndertaking to pay Conditional undertaking to pay Unconditional order to pay Conditional order to pay None of the above 3. The beneficiary of a letter of credit is: (a) (b) (c) (d) (e) The seller The buyer The financing bank Either a or b None of the above 4. Which one of the following is not literally part of the „five C? s of credit (a) (b) (c) (d) (e ) Capital Character Capability Collateral None of the above 5. In sequential analysis of creditworthiness, which one of the following should be your starting point? (a) (b) (c) (d) (e) Capital Character Collateral General economic conditions None of the above 7 6. The measure not commonly employed for judging whether accounts receivables are â€Å"in control† is: (a) (b) (c) (d) (e) Ageing schedule Average collection period Bad debt losses Interest collected on delayed payments None of the above 7. In a consignment sale: (a) (b) (c) (d) (e) The title of the goods is with the consignor The title of the good is with the consignee Consignee is an agent of the consignor Both a and c None of the above 8. In type II error: (a) A bad customer is misclassified as a good credit risk. (b) A good customer is misclassified as a poor credit risk (c) None of the above 9. Under the DSO method, if the value of DSO exceeds the specified norm: (a) (b) (c) (d) (e) Collections are considered to be fast Collections are considered to be slow Collections are considered to be satisfactory Collections are considered to be average None of the above KEY 1 (d) 2 (c) 3 (a) 4 (c) 5 (b) 6 (d) 7 (d) 8 (a) 9 (d) 48 INENTORY MANAGEMENT 1. Maintaining ‘organisation' inventories is not for: (a) (b) (c) (d) (e) Reducing the time required for the process Widening the latitude in planning and scheduling successive operations Decoupling the purchasing and production activities to some extent Both b and c None of the above . Which one of the following is not the most commonly used tool of inventory management in India? (a) (b) (c) (d) (e) Just- in-time inventory control ABC analysis FSN analysis Inventory turnover analysis None of the above 3. ABC analysis advocates a selective approach to inventory control with concentration on: (a) (b) (c) (d) (e) Items accounting for the bulk of usage by usage quantity Items accounting for the bulk of usage by usage value The process time related to high value inventory All the above None of the above 4. Which one of the following is not an assumption in the basic EOQ model? (a) The cost of carrying is a fixed percentage of the average value of inventory (b) The cost per order is constant regardless of the size of the order (c) The interval between ordering and receiving goods is constant (d) The usage is even throughout the period (e) None of the above 5. Fixed manufacturing overheads are treated as period costs under: (a) (b) (c) (d) (e) Direct costing Absorption costing Indirect costing Variable costing None of the above 49 6. JIT inventory system requires: (a) (b) (c) (d) (e) Strong and dependable relationship with suppliers Reliable transportation system Either a or b Both a and b None of the above KEY 1 (a) 2 (a) 3 (b) 4 (c) 5 (a) 6 (d) 50 WORKING CAPITAL FINANCING 1. Accruals are treated as part of: (a) (b) (c) (d) (e) Spontaneous financing Regular financing Long- term financing Internal accrual None of the above 2. Which one of the following is the most harmful factor in getting trade credit? (a) (b) (c) (d) (e) Poor earning record Broken promises Unrealistic plans Poor market share None of the above . A firm typically should: (a) Delay the payment till the last day of the net period (b) Delay the payment if possible beyond the net period (c) Avail of the discount for prompt payment in the middle of the discount period (d) Avail of the discount for prompt payment on the last day of the discount period (e) None of the above 4. Which one of the following is not a means of obtaining working capital finan ce? (a) (b) (c) (d) (e) Overdraft Discounting of bills Letter of credit All the above None of the above . In a letter of credit arrangement: (a) (b) (c) (d) (e) Bank assumes the risk Bank supplies the credit Suppliers assume the risk Both a and b None of the above 51 6. In cash credit, the responsibility of cash management lies with: (a) (b) (c) (d) (e) The bank The customer The creditors Both b and c None of the above 7. Which one of the following is typically a demerit of public deposits, for an investor: (a) (b) (c) (d) (e) Interest rate Maturity period Tax exemption Restrictive covenants None of the above . Inter-corporate deposit market is charecterised by: (a) (b) (c) (d) (e) Secrecy Lack of regulations Personal contacts All the above None of the above 9. RBI imposes certain conditions on the terms of issue of a commercial paper because it is: (a) (b) (c) (d) (e) Issued for a short term Issued at a discount to the face value Unsecured Issued for raising working capital None of the above KEY 1 (a) 2 (b) 3 (d) 4 (d) 5 (a) 6 (a) 7 (c) 8 (d) 9 (c) 52 WORKING CAPITAL MANAGEMENT: EXTENSIONS 1. In a MRP system, the master schedule is exploded into: (a) (b) (c) (d) (e) Purchase order for raw materials Shop orders for scheduling the factory Time bound orders for purchase of balancing equipments Both a and b None of the above 2. In which of the following, inventory is treated as the „root of all evil (a) (b) (c) (d) (e) Kaizan Kanban JIT Both b and c None of the above KEY 1 (d) 2 (c) 53 DEBT AND HYBRID FINANCING 1. Market price of a coupon bond is independent of: (a) (b) (c) (d) (e) Maturity period Coupon rate Required rate of return Inflation rate None of the above . Which one of the following can affect real interest rate: (a) (b) (c) (d) (e) Expected higher inflation Tax law changes Heightened competition for funds Both b and c None of the above 3. A debt rating is not a: (a) (b) (c) (d) (e) General evaluation of the issuing organisation Reflection on the timely payment of interest Reflection on the timely payment of principal Recommendation for purchasing a security None of the above 4. Which one of the following is true? a) A debt rating implies that the rating agency performs an audit function (b) A debt rating offers low- cost information (c) A debt rating creates a fiduciary relationship between the rating agency and the users of a rating (d) Both a and b (e) None of the above 5. Which type of firms would do well to incorporate sinking fund provisions in their debt issuances? (a) (b) (c) (d) (e) Firms with higher debt – equity ratio Firms with higher growth rates Firms with smaller asset lives All the above None of the above 54 6. To tackle inflation risk, you will go for: (a) (b) (c) (d) (e) Deep discount bonds Fixed rate bonds Floating rate bonds Inverse floaters None of the above 7. If you are called to fund an airport project, you would prefer to go for (a) (b) (c) (d) (e) deep discount bonds floating rate bonds puttable bonds term loans None of the above 8. Pass Through Securities are serviced from the (a) (b) (c) (d) (e) proceeds of sale of a pool of assets cash flows received from a pool of assets proceeds of a public issue proceeds of a debenture issue for this purpose None of the above . Which one of the following is not a negative covenant in a bond issue? (a) (b) (c) (d) (e) The firm may not dispose or lease its major assets The firm cannot merge with another firm The firm cannot go in for capacity enhancement The firm cannot acquire another firm None of the above 10. When inflation is expected to rise in the coming decade, as a bond issuer, you will prefer to issue (a) (b) (c) (d) (e) Fixed rate bo nds Floating rate bonds Callable bonds Puttable bonds None of the above 55 11. Reinvestment risk for a bond refers to the risk that the periodic interest payment may have to be reinvested at (a) (b) (c) (d) (e) A lower interest rate A higher interest rate A risk-free rate (a) and (c) None of the above 12. For a zero coupon bond (a) (b) (c) (d) (e) Duration is zero Duration is one-half the term to maturity Duration is undefined Duration is the same as the term to maturity None of the above 13. Immunisation attempts to balance (a) (b) (c) (d) (e) Price risk and default risk Price risk and reinvestment risk Recall risk and reinvestment risk Inflation risk and price risk None of the above 4. Which bond has the longest duration? (a) (b) (c) (d) (e) 12-year maturity, 5 % coupon 12-year maturity, 7% coupon 8-year maturity , 7% coupon 8-year maturity , 5 % coupon None of the above 15. Which among the following may not be a plausible reason for a company issuing callable bonds? (a) (b) (c) (d) (e) Superior interest rate forecasting Greater investment flexibility Reducti on in interest rate risk Strategic positioning None of the above 56 KEY 1 (e) 12 (d) 2 (d) 13 (b) 3 (a) 14 (a) 4 (b) 15(d) 5 (d) 6 (c) 7 (a) 8 (b) 9 (c) 10 (a) 11 (a) 57 INTERNATIONAL FINANCIAL MANAGEMENT 1. International foreign exchange market is dominated by (a) (b) (c) (d) (e) Speculative transactions Hedging transactions Mercantile transactions Transactions between central banks None of the above 2. Exchange rates in India are fixed by: (a) (b) (c) (d) (e) Ministry of finance Reserve Bank of India Foreign Exchange Dealers Association of India A committee appointed for this purpose None of the above 3. Commission charged by foreign exchange dealers generally range from: (a) (b) (c) (d) (e) 0. 25 to 0. 50 percent 0. 02 to 0. 05 percent There is no particular range They do not charge any commission None of the above . The bid-ask spread reflects: (a) (b) (c) (d) (e) The breadth of the market The depth of the market The volatility of the market All the above None of the above 5. If the forward bid in points is less than the offer rate in points, which of the following is not true? (a) (b) (c) (d) (e) The foreign currency is at a premium The home currency is at a premium The foreign curr ency is at a discount Both a and b None of the above 6. Currency futures contracts are traded: 58 (a) (b) (c) (d) (e) Over phone/electronic media Over the counter by leading banks In exchanges In all the above In none of the above 7. A tailor made currency option can be purchased from: (a) (b) (c) (d) (e) Organised exchanges Banks dealing in foreign exchange Mercantile agents Investment banks None of the above 8. Eurocurrency market is: (a) (b) (c) (d) (e) 9. The advantage of issuing a GDR is: (a) (b) (c) (d) (e) There is no listing fee Onerous disclosures are not required There are no onerous reporting requirements All the above None of the above Market in which currencies of European nations are traded International market for loans denominated in euro International market for short-term capital International market for long – term capital None of the above 0. Which one of the following attracts stringent listing requirements? (a) (b) (c) (d) (e) Yankee bond ADS GDR Both a and c None of the above 11. Packing credit advance has to be liquidated: (a) (b) (c) (d) (e) By negotiation of export bills By receipt of export proceeds By availing of rupee term loan Either a or b None of the above 59 12. Forfaiting essentially refers to: (a) (b) (c) (d) (e) Financing exporter? s inventory Discounting exporter? s receivables Guaranteeing of the export receivables by the exporter? s bank Surrendering the export proceeds in favour of the discounting bank None of the above 3. The beneficiary of a Letter of Credit is: (a) (b) (c) (d) (e) Importer Exporter Exporter? s bank Importer? s bank None of the above 14. Forward contracts are entered into to hedge: (a) (b) (c) (d) (e) Transaction exposure Translation exposure Operating exposure All the above None of the above 15. Which one of the following may not be a means of mitigating operating exposure? (a) (b) (c) (d) (e) Change in sourcing Shift in the location of production Change in product-market combination Leading and lagging None of the above 6. As foreign exchange market is an OTC market, which of the following is not true? (a) (b) (c) (d) There is lesser price transparency Trades can be customised in terms of maturities There is risk of counter party default There cannot be differences in the exchange rates for the same currency pair, for different counterparties (e) None of the above 60 17. Which of the following currency is traded in both the euromarket and the offshore market? (a) (b) (c) (d) (e) US Dollar British Pound Euro All the above None of the above 18. The spread over SIBOR for a given borrowing is also a function of the prevailing market conditions: a. True b. False 19. Bonds issued by a German company in the US, denominated in dollars are : (a) (b) (c) (d) (e) Foreign bonds Domestic bonds Eurobonds International bonds None of the above 20. In the case of GDRs issued by Indian companies, the reverse conversion i. e. from shares to GDRs is freely permitted: a. True b. False KEY 1 (a) 12 (b) 2 (e) 13 (b) 3 (d) 14 (a) 4 (d) 15 (d) 5 (a) 16(d) 6 (c) 17(d) 7 (b) 18(a) 8 (c) 19(a) 9 (d) 20(b) 10 (a) 11 (d) 61 FINANCIAL MANAGEMENT OF SICK UNITS . RBI study on the causes of industrial sickness shows that the incidence of sickness is highest in India on account of: (a) (b) (c) (d) (e) Labour trouble Market recession Mismanagement and managerial deficiencies Faulty initial planning and other technical drawbacks None of the above 2. If CDR is not possible, the restructuring may be done through: (a) (b) (c) (d) (e) NS OTS ADB Either a or b No ne of the above 3. Which of the following is not a reason for classifying a unit as sick by term lending financial institutions? (a) (b) (c) (d) (e) Default in meeting a certain no. f consequent instalments Continued erosion of market share Cash losses for a certain period Continued erosion of net worth , say by 50 percent None of the above KEY 1 (c) 2 (d) 3 (b) 62 CORPORATE RISK MANAGEMENT 1. Economic risks mostly may not arise on account of : (a) (b) (c) (d) (e) Output price R&D Labour cost Competitive environment None of the above 2. In general, which among the following may not have any significant impact on the performance of a firm? (a) (b) (c) (d) (e) Economic risks Financial risks Technological risks Regulatory risks None of the above 3. Hedging activities aimed at reducing total corporate risk, are regarded as irrelevant by modern finance theory: a. True b. False 4. According to CAPM, only the unique risk has a bearing on the required rate of return: a. True b. False 5. Greater financial flexibility to cope with volatility in financial prices is provided by a: (a) (b) (c) (d) (e) High current ratio High gearing ratio Low gearing ratio High quick ratio None of the above 6. R2 refers to the : (a) (b) (c) (d) Coefficient of multiple regression Variance of regression Coefficient of multiple correlation Coefficient of multiple covariance 63 e) None of the above 7. Total risk cannot be fully offset by hedging with market portfolio: a. True b. False 8. If you want to hedge interest rate risk, you should (a) (b) (c) (d) (e) Go long on interest rate contract Go short on interest rate contract Sell a forward contract Enter into a forward rate agreement None of the above 9. Futures are forward contracts: a. True b. False 10. Y ou will not be marked to market, if you: (a) (b) (c) (d) (e) Purchase a futures contract Sell a futures contract Purchase an options contract Sell an options contract None of the above 11. In a currency swap interest payments are not swapped: a. True b. False 12. Which of the following may not be a reason for going in for a financial swap? (a) (b) (c) (d) (e) Spread compression Market segmentation Market saturation Difference in financial norms None of the above 13. Which among the following is not standardized: (a) (b) (c) (d) (e) Options contract Futures contract Swap contract All the above None of the above 64 14. Insurance companies do face the problem of adverse selection but not that of moral hazard: a. True b. False 15. Globally the most popular measure of risk is: (a) (b) (c) (d) (e) Duration VAR R2 Gap analysis None of the above 6. For commodities the following relationship is expected to hold: Futures price (a) (1+rf)t Futures price (b) (1+rf)t Futures price (c) (1+rf)t Futures price (d) (1+rf)t (e) None of the above = Spot price – Present value of storage costs + Present value of convenience yield = Spot price + Present value of storage costs – Present value of convenience yield = Spot price+Present value of storage costs + Present value of convenience yield = Spot price KEY 1 (b) 12(e) 2 (e) 13(c) 3(a) 14(b) 4(b) 15(b) 5(c) 16(c) 6(c) 7(a) 8(d) 9(a) 10(c) 11(b) 65

Decisions Essay Example | Topics and Well Written Essays - 1500 words

Decisions - Essay Example This also takes into consideration the fact that decision-making is impossible to be the same in every organisation of a country, in spite of similar culture. But on the whole, it would be more or less identical and definitely, it would be totally different from organisations of another culture. Various cultures have different ways of approaching a problem and solving it. It could a participatory method or the time-honoured authoritative approach, or the decision-making might involve a group, or the topmost manager could take the total responsibility of it on his shoulders. Country related cultural factors like high or low masculinity, weak and strong uncertainty avoidance, and different ways of assessing the problem can all affect the process of decision making. Even if the outcome could be poles apart, the steps of decision making are more or less the same: identifying the problem, criteria, and allocation of weights to criteria and the final decision. If problems are framed to two people, it would definitely result in at least slightly different solutions and it is not surprising that two countries with diverse backgrounds, race and culture should have organisations that would take unidentical decisions in solving a management problem3. Defining the problem itself could be from absolutely dissimilar angles. From the decision-making point of view, a wrong diagnosis of the problem could definitely lead into wrong decision-making. Sometimes managers act without complete knowledge of the problem in haste4. Identifying the relevant criteria is the next step of decision-making. Judging the weight of the criteria, so that the decision could be taken accordingly is another step. Before making a decision, it is absolutely necessary to look at the alternatives and apply them to the criteria and assess and decide on the best-suited alternative under the circumstances. If alternatives are not considered, there is always a mischance of leavin g aside a better option. Rating each alternative against each criterion is the best way of taking a decision. Only after that, a decision could be arrived at and before the final decision, its credibility, far reaching affect and its suitability should be assessed. US AND JAPAN These two countries are absolutely different from one another in race, culture and outlook. Japanese had enormous success in industrial and technological field and since then they are pitted against United States in decision making. There is a crucial point that US has a top-down decision making process, where decisions come down from the top level and the rest are expected to follow it verbatim. But Japanese still believe in conventional society, and here the decisions are made at the operating level, 'a sort of bottom-up process' and such decisions are supported and approved by the organisation at all levels. There had been speculations in both countries about the success of the other's economy and researches have gone into the decision-maki

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American Foreign Policy - Essay Example A global hegemony cannot be decided based on public opinion. What matters is international legitimacy which comes from global coalition of willing nations. This is something which US continues to gain ground in thus proving that it is not in a decline. The US has taken the international community as a whole. However, it is worth pointing out that some of this has taken place in a rather begrudging manner. Its position as the world’s super power will only start to decline when the allegiances to the nation break down. America still wields influence, leadership and persuasion in the international stage just as it did decades ago. One clear illustration of this strong influence is its ability to set international laws and at the same time be able to ignore them as it is accountable to no other state in the world. Military power has always been an integral part of hegemony (Jerel and Scott 2014, 60). This was quite evident during the World War period where nations which had the strongest military wielded so much global power in terms of political economy and relations. USSR and the USA were leading in this. Military power depends entirely on economic resources which are at the disposal of the state. It is something which the US has making it the nation with perhaps the most sophisticated military. The US is still moving in a path of progressive and democratic governance. It recognizes the freedom of the press, religion, association and expression. This has earned it legitimate allies that look at the nation as a role model. Despite the fact that it is no saint when it comes to these governance issues, it has a legitimate team of allies that allow dictating stability and global shifts in terms of relations. Arguments have been put across that the growth of economies in certain world countries like China is causing a decline in US influence in global policies. However, this is not true as the economic growth in other nations will

DNA In The Criminal Justice Field Essay Example | Topics and Well Written Essays - 750 words

DNA In The Criminal Justice Field - Essay Example The benefits of the stated, as well as the challenges that may confront its implementation, shall be explored herein. Violent crime is increasing and become more widespread. This statement is supported by statistics which indicate that there are an average 25 murders in the United States every single day, in addition to over 1,000 acts of violence, including rape ("World Murder Statistics"). Most of the crimes are solved and the criminals get their legal punishment but, in numerous other cases, the wrong person is imprisoned or the crime remains unsolved. Over and above, catching just one criminal and solving just one case involves hours of police work and costly investigations. In other words, the current method of solving crimes is costly and its results are not guaranteed. It is due to this that the US government should try to improve and enhance its crime fighting ability. As the United Kingdom as already in the process of doing, according to the Lancet science writer, Adrian Linacre, the United States should establish a criminal DNA database. This database which would, at first include DNA sam ples from all people guilty of any type of crime or suspected in a crime, would act as a reference for solving crime in an efficient and certain manner. With such a database, DNA collected from a crime scene can be matched up against DNA already in the databank and DNA collected from the new crime suspects (Linacre). On the one hand, this will help solve crimes much faster and, on the other hand, will protect the innocent from wrongly being accused and imprisoned. The United States, however, does not have such a databank at the present moment. According to the USA Today article, "DNA Database Could Help Solve Crimes," this undermines the ability of US police forces to solve crimes. As written in the article, "The United States is one of only a small number of countries that limit the crime fighting potential of their DNA databases by failing to include suspects and/or arrestees" ("DNA Database"). The reason is that the United States fears that such a database would be an invasion of privacy on the one hand, and that the widespread use of DNA in crime solving would be abused, on the other. While establishing a DNA databank and exploiting DNA science in fighting crime could be interpreted as a violation of privacy, can be abused, and may cost millions of dollars in taxpayers' money, the fact is that a DNA databank and the widespread use of DNA evidence in police work are invaluable in fighting crime; separating the guilty from the innocent, ensuring that criminals are caught and protecting society. Although the use of DNA as a crime fighting and solving method appears quite complicated, it actually is not and can be defined as a more accurate and advanced type of fingerprinting. As defined by Adrian Linacre, a human biologist, DNA refers to the material inside each and every human cell nucleus and which contains an individual's genetic print. That genetic print, or map, is unique to the individual, with the implication being that it functions as a definitive identifier. The importance of DNA, as a

Mergers and aquisitions in the USA banking Dissertation

Mergers and aquisitions in the USA banking - Dissertation Example For the past fifteen years or so mergers and acquisitions in the world of American banking have increased tremendously. There are a number of reasons behind this, such as increase in competition among the financial institutions, the deregulation of the banking sector and upheavals in the economy as well as the interest rates. The paper studies the impact of the consolidation of banks and its effects on the wealth of the shareholders. Though it is largely thought that consolidation is likely to have a positive effect on the wealth of the shareholders, study has found that it is not the case. Thus the thesis discusses in detail the reasons due to which the financial firms of USA are likely to undergo the process of mergers and acquisitions and its impact on the shareholders’ monetary resources. The sample spaces taken for the project are the mergers and acquisitions of the past ten years. The recent most acquisition in the American banking sector is taken into account (the acqui sition of Golden West Financial by Wachovia in 2006) is studied in great detail. The period from the 1930s to the mid 1970s has been the most stable in the history of the American banking sector (Grullon, Michaely, Swary, 1997). However, causes such as an increase in competition, the deregulation of the banking sector and upheavals in the economy as well as the interest rates of the country has resulted in numerous unprecedented problems for the bankers

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Im not sure about the topic - Essay Example Both exercises emphasize a the mental aspect of exercise that requires focus and strong discipline to gain good results. In yoga, which is an Eastern cultural practice, meditation is utilized to relax the mind and relieve the body of stress caused by worry, anxiety, depression, grief and other negative emotions. A number of physical ailments have been linked to stress such as diabetes, hypertension, asthma and even certain types of cancer. Yoga is one popular method of mind-body awareness that in a way helps to heal the body because the mind and the body is only one unit (Siegel 60). While yoga is spiritual in nature, pilates is more on flexibility and strengthening the muscles of the body, especially the torso (core of the body), the back muscles and also on the abdominal muscles, that greatly improves lung capacity and results in better blood circulation. Pilates was originally developed to rehabilitate immobilized or wounded soldiers; it is made up some 500 different exercises divided into two general types: mat exercises and resistance exercises using some special equipment. Both yoga and pilates offer the same benefits of the mind-body awareness due to connection of nerves, molecules, antibodies and

FREEDOM Essay Example | Topics and Well Written Essays - 750 words

FREEDOM - Essay Example In this paper, I will describe my concept of freedom and why I feel that I am free. I will also explain what idea of freedom people have in their minds and how the meaning of freedom has changed over the years. Some people believe that freedom is something that the Nature has not granted man with. They affirm that life is a sequence of predetermined events that come to us and go leaving signs of happiness or scars of sorrow on our hearts. For them, it is the Nature who has already decided who we are, which race we belong to, what we shall earn, what we shall spend, and where we shall live our lives. This concept is also a part of many religions where people believe that every good and bad comes from God and we are just made to bear that good or bad. Even Shakespeare said that this life is a stage and the human beings are only the actors who have to play their part of the play, and pass on. The strings are in God’s hands. To some extent, I also believe in this thing that God has decided for us many things, just as Leiter (2010) states, â€Å"Religious beliefs involve, explicitly or implicitly, a metaphysics of ultimate reality.† But on the other hand, He has also left a lot ma ny things in our hands too. If he has decided for us who are parents are going to be, what color we shall be, what race we shall belong, what language we shall speak, what religion we shall follow, what relations we shall make, then he also told us what is right and what is wrong and then left us free to choose whichever path we wanted to choose. God told me the right path and then set me free by providing me with equipments to help myself follow that path. He told me the wrong path and then set me free by providing me the resources which I may avail to follow the bad path. Now, it is up to me to choose the right path or the bad one. Then, who says that I am not free? Of course, I am free. I am free to make my own choices. I am free to

The Impact of Self Interest in Relation to Change Essay

The Impact of Self Interest in Relation to Change - Essay Example Change is a  crucial  part of  our  lives. Change in organizations is also an  important  factor. In the words of Arthur Schopenhauer, â€Å"Change alone is continuous, eternal and perpetual.† According to this assertion, the permanency and inevitability of change can neither be underrated nor overemphasized (Smollan, 2011). The fact that not all change is  positive  should not  deter  individuals from embracing change. However, change must be approached from an informed point of view. Both the proponents and opponents of change must  appreciate  that all change tags along discomforts and drawbacks. This essay will  seek  to address the impact of self interest as a motivator that inspires change (Robbins & Judge, 2011). According to Machiavelli’s â€Å"†¦. there is nothing harder and hazardous, or more uncertain of success, than an effort to introduce a new sequence of  things†¦for  the pacesetter has for enemies all those who benefit from the status quo whilst those who support the new †¦will be but lukewarm defenders.† This quote thus suggests that the introduction of change in any setting faces some  level  of resistance (Robbins & Judge, 2011). ... ge† must be achieved.  Resistance to change alludes to the action adopted by individuals and groups when they  sense  that a change that is happening as a threat to them (Cartwright, 2005, p. 301).  This  resistance  is encountered  within organizations, although it can also be found in other places.  Man’s habitual tendency to tread the path of least resistance bars him from accepting change.  In an organization, this  resistance  can also be deemed  positive. Resistance to change affords a  level  of  stability  and certainty of behavior by preventing  abrupt  change. Absence of such resistance would lead to a  situation  of chaotic randomness within the organization. In an attempt to  discuss  the causes of resistance, this paper will  classify  the causes into; individual resistance,  group  resistance  and organizational resistance (Robbins & Judge, 2011). Individual resistance Individual resistance arises due to conflicting perceptions, needs and personalities.  Most of the reasons as to  why such resistance occurs may be  lucid  or emotional. The reasons for  individual  resistance  are listed  hereunder: Economic reasons In an  organization,  when a new technology  is introduced, the technology will  encounter  some  level  of resistance. The employees may  dread  that the new technology will  render  them  jobless. Usually, new technology necessitates  further  training  and replacement of  unskilled  staff  by  skilled  staff  and  therefore, the employees will  oppose  the change. In organizations where the rate of pay  is pegged  on the workers productivity, the workers may fear that the new technology will cause them  miss  their  production  targets and thus  lower  their earnings Psychological factors The psychological factors that  breed  resistance

Kantian and Utilitarian Theories and the Nestle Moral Issue Term Paper

Kantian and Utilitarian Theories and the Nestle Moral Issue - Term Paper Example o new mothers, free or low cost products, improper labels) allegedly designed for the adoption of bottle-feeding instead of breast-feeding by mothers. Outrage against Nestle came to a high point when a Caribbean Food and Nutrition Institute attested that millions of infants suffered ailments or death due to bottle-feeding. The institute, however, did not clarify whether the cause was the infant formula or improper sterilization-and-storage of baby bottles and feed. Heightened indignation against Nestle resulted in a campaign led by the Infant Formula Action Coalition (INFACT) to boycott Nestle products globally. Subsequently, the World Health Organization (WHO) imposed a Code of Marketing of Breastmilk Substitutes to prohibit advertising which discourages breastfeeding. After years in which Nestle seemed to comply with the Code, the Action for Corporate Accountability charged Nestle with non-compliance. Boycott of Nestle was again instigated, bolstered by the United Methodist Churchà ¢â‚¬â„¢s study that Nestle’s advertising practices (free supplies to hospitals, stepped up donation to counter Ivory Coast government’s promotion of breastfeeding) were designed solely to increase sales, thus violating the WHO code. KANTIAN AND UTILITARIAN THEORIES 3 Today, the issue is unresolved due to data issued by UNICEF that 1.5 million infants, who are not breast-fed, die each year. This study was used by the International Baby Food Action Network and its affiliates by accusing Nestle and other infant-formula companies of violating the WHO marketing code. The situation aggravated when a 2003 British Medical Journal reported that 90 percent of health providers were ignorant of the WHO code, while two-thirds of mothers using infant-feed formula were not advised on the benefits of... Kantian and Utilitarian Ethics have similarities in their common aim to provide guidance on moral conduct amid 18th century modernizing times in which nationalism and industrialization were emerging. Both theories need not be seen simply as speculative principles since the Kantian categorical imperative will have an impact after his death on the subsequent 19th century German idealism in which: â€Å"The state had a will, a consciousness and a moral end of its own, on a higher level than that of any individual. Neither internally nor externally was the state limited by moral laws, since it was itself the fount of such laws†. On the other hand, utilitarianism will be the foundation of the American principle of American capitalism and free enterprise, expressed by Adam Smiths’ insight â€Å"in which a free market system could combine the freedom of individuals to pursue their own objectives†. The Utilitarian philosophy is also well entrenched in the Declaration of Independence as drafted by Thomas Jefferson: â€Å"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights that among these are Life, Liberty, and the pursuit of Happiness†.

Challenges Facing the Graduate Student Essay Example for Free

Challenges Facing the Graduate Student Essay The many challenges that face the potential graduate students may inhibit them from taking that first step to enrolling in graduate school. This paper will focus on personal challenges for this writer and strategies she will use to overcome them. Some challenges for this writer are working full-time, being financially responsible for others while maintaining a mortgage and family responsibilities. Time management and a novice regarding some computer programs also provide other challenges. Many obstacles have to be conquered in an effort to ensure success. Hardin (2008) contends these barriers often put her at a greater risk for being unsuccessful. The purpose for this writer entering graduate study is the hope of expanding her career opportunities to include teaching at the undergraduate level. Her motivation to return to school was two-fold. A divorce and a lengthy recovery following a work-related injury within a year inspired thoughts of facing the future being financially independent and wondering if the recovery would be without limitations to allow a return to bedside nursing. These life changes prompted soul searching and re-motivated this writer to pursue a graduate degree, a goal that had been set several years prior. As a graduate student this writer faces the challenges encompassed with being an adult. Over the past 30 years, there has been an escalation of students, primarily women, entering graduate study. According to Hardin (2008) the motivation for many women to return to school is usually centered on a major life change. These women usually return to college in an effort to support their families. Balancing commitments, such as work, life, school and other responsibilities create a stressor to the student and pose even more challenges. As the sole provider for two children and responsible for other financial costs that entail, this writer works full-time on the nightshift. Traditionally compensation on nightshift is more than traditional work schedules. Although financially this helps alleviate one stress for this writer, another stress is created, lack of sleep. Sleep deprivation, fatigue and sleepiness negatively affect function that often results in decreased productivity (Mulgrew, 2007). This writer believes working nightshift and facing the sleeping challenge poses a potential barrier to success. Based on 2004 statistics, approximately 15% of Americans work nontraditional work schedules (Chung, Wolf, Shapiro, 2009). Adan and Natale (2002) also found that the relationship between gender and shift work support the thought women are more morning types, preferring to retire to sleep earlier and rise sooner, which results in optimal mental performance. This writer believes this to be true of her. In an effort to meet the challenge of time management, she will keep an accurate calendar and prioritize all appointments, work schedule, and other commitments. Blocking out hours of the day to focus on schoolwork as well as ensuring enough sleep while pursuing personal goals such as exercise should encourage quality work. Procrastination is time’s enemy. A few minutes of effective planning will save time in the end. This involves a continual assessment and reassessment of priorities and activities (Spidal, 2009). Financial stressors also affect the graduate student. Hardin (2008) found lack of financial support may actually prevent an adult from enrolling in graduate school. The adult student often differs from the traditional student as her financial needs often include a mortgage and childcare. Working nightshift helps alleviate the financial deficit for this writer as nightshift pays a differential. Many nurses, including myself, will work extra shifts to offset the financial burden. Attending classes may inhibit the overtime opportunity, therefore smaller paychecks add to the existing financial load. A graduate student has to weigh the benefits of an education when after graduation her financial debt will increase (Morgenthaler, 2009). In an effort to minimize the loan amount, this writer researched loans and scholarships. She consulted her employer and found there were a few scholarships available in addition to education reimbursement. The scholarship amounts are monetarily limited. Some also require a commitment to continuing employment for a set number of years per scholarship. Despite these caveats, any amount of money is helpful to decrease the debt as well as ensuring longer employment. Another challenge facing this writer is she has never used PowerPoint in any arena. This may lead to a feeling of inadequacy. To neutralize this deficit she will ensure access to the latest computer programs for her papers, research, or presentation. Ultimately the amount of effort put forth by this writer to achieve desired educational results will depend on her overall motivation and dedication to her goal. Hardin (2008) has found that most graduate students are not prepared academically. This is associated to being away from the academic setting for a prolonged amount of time. Technological skills may be outdated or she may not understand the new computer programs. Conducting research and writing papers at a professional level may also be intimidating to the graduate student (Morgenthaler, 2009). Many challenges face this nontraditional graduate student as she returns to school. Although there are significant obstacles, this writer is optimistic about overcoming these obstacles by using the aforementioned strategies as she successfully completes graduate school.

Effect of Product Placement in Films

Effect of Product Placement in Films CHAPTER II: Literature Review Product placement Product placement in movies is no new phenomenon as Lehu (2007), describes product placement as the location or more accurately the integration of a product or a brand into a film or televised series. This form of advertising has been around for sometime although its not traditional advertising it speaks to an audience in a different form of communication which is either in your face or subliminal messages. Product placement comes in a number of different forms including visual, audio and a combination of the two combined. Visual product placement Is a visual representation of a brand in a movie, This includes strategically positioning a brand in the background or being used by the actor of a scene, displaying a billboard or some other form of visual advertisement in a scene, and any other visual representation of a brand-name product without any relevant message or sounds on the audio track which draw attention to the product (Gupta Lord, 1998). An example of this is Daniel Craig u sing a Sony Vaio in the movie Casino Royal (2006). See Appendix A. Audio representation of a brand can be the mention of the product in script but not necessarily shown on screen for example the movie Wall Street (1987) where Martin Sheens character says to a server, Get this kid a Molson Light (Gupta Lord, 1998). In combining these two formats Gupta and Lord (1998) defines audio-visual placement as the visual appearance of a brand with a verbal mention of the brand name or a brand- relevant message for example The Bellagio Hotel in Las Vegas is seen and talked about in the movie Oceans eleven (2001) (Lehu 2007). Product placement, as a marketing tool, has many advantages due to its captive audience, the social nature that it is being viewed in and the lack of clutter, such as other advertisements (Dunnett Hoek, 1996). This form of communication is described as being an effective technique as Jhonson (2009) explains For subliminal suggestion to be effective an individual must be relaxed and open to suggestion. The subconscious mind is more open to suggestion when a person is relaxed. This practice has not gone without controversy, however, as its use is often debated by moviegoers and media experts. While some moviegoers feel that the use of product placement enhances a film by adding to its realism (Govani 1999). Others see the practice as an invasive one that sews itself a new seam in the blanket of brands that covers a strong consumer-based society (Phillips Purdie 1993). Some supporters of the practice argue that product placement allows them to relate to the characters (DeLorme, Reid, Zimmer, 1999) Product placement strategy Strategy Dates back a few decades, in an example where Joan Crawford is drinking Jack Daniels whisky in the 1945 production Mildred pierce (Wasko 1995). Back in these earlier times product placement was a casual affair, property masters would contact a local Jack Daniels distributer asking for the product to be used in the film. Today the product placement is more deliberate and sophisticated, Divisions dedicated to paying to have their goods inserted strategically into movies are of the norm for large corporations this is to gain access to what is seen as a glamorous medium with a relatively captive audience. Coca-Cola and Pepsi are amongst a number of companies who have formed in house divisions dedicated directly to product placement or Hollywood advertising (Wasko 1995). The belief of companies associated with product placement is that if a movie grosses $50 million, the advertiser has reached an audience of 13.7 million in theatre viewers, assuming this the movie will likely sell in DVDS/Videos adding additional impressions per placement along with celebrity credibility bought by the use of the product. (Wasko 1995). Kardes (2008) adds to the argument by stating that When a brand is shown in a movie it is definitely seen but a broadcast commercial can be skipped via the fast forward button on a DVR. However narrative coherence can be disrupted by strategies used to market products. Music videos related to films is used as an example The promotion of some features is helped by the use of videos featuring music from the film, examples include Flashdance (1983) , Footloose (1984), Purple Rain (1984), staying alive (1983) and The Bodyguard (1992) (King 2002). In these films the excess created by the conjunction of music and image creates a module separa te from the narrative, working against the sequential structuring of the film. Product placement within the Hollywood film industry Product placement increased dramatically since the appearance of Reeses Pieces in the 1982 Movie E.T: The Extra-Terrestrial caused the sales of the product to increase by 68%. (Balasubramanian et al 2006). Today product placement in movies is highly noticeable. In the film Minority Report (2002) at least 15 brands where placed, including Nokia, Pepsi and Lexus. In Die Another Day (2002) there were cameos from Jaguar, Aston Martin and Thunderbird, which are all owned by the Ford motor group (Jobber 2004). However alongside soft drinks one of the most common products placed in movies are cars. BMW invested ÂÂ £20 million on the placement of its Z3 roadster within the movie Goldeneye (1995) and the use of other advertising media to support the placement and create awareness (Fill 2005) Gupta and lord (1998) focus on studies concerning recall of brands placed within movies that have been undertaken; they found that prominent placements achieved higher levels of recall. Morton and Friedman (2002) mention that any contact with a brand in a film will help influence purchasing decisions. It is argued by Joachimsthaler and Aker (1997) that visibility of brands are underestimated as it signals leadership, quality and success, people like to know brands even if they have never used them. This appears to indicate that the primary benefit of placement in movies is the increase of brand recognition. Consumer behaviour Consumer behaviour is the study of individuals, groups or organisations and the process they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. (Sharma, A. 2006). The study of consumer behaviour helps organisations improve their marketing strategies by understanding the psychology behind consumer thoughts, feelings and by understanding his or her environment all which have an effect on the action towards a brand or product. Tyagi and Kumar (2004) state that there is a relationship between consumer behaviour and his attitudes, communication with him and how to motivate him. Family, social and cultural dimensions of consumer behaviour have a role to play. Product placement isnt about sales its about brand awareness claims expert Samuel Turcotte. (Galician 2004). Whilst awareness may be generated attitudes and perception also start to form towards the brand. Attitude formation can be on the bases of cognitive responses to stimuli or information of other sources; cognitive thoughts are responses we have to a communication. Positive thoughts will generally have a positive affect on attitudes whereas negative thoughts will have negative attitude formation (Hoyer Macinnis, 2008). Age has another implication on attitudes and perceptions of product placement. In their 1999 study, DeLorme, Reid, and Zimmer interviewed younger audiences (aged 18-21) and older audiences (aged 35-48) in a bid to compare different views on product placement. A number of focus groups resulted in the finding of distinct and diverse perspectives among many of the study samples. According to their research, (DeLorme, Reid, and Zimmer 1999) found that older audiences generally perceive product placements as implications of a changing society and the current use of product placement was an indication of a major cultural shift, according to the study older moviegoers associated brand props with feelings of insecurity, frustration, and fear of change (DeLorme, Reid, Zimmer, 1999, p.24) various examples of such feelings were provided. On the other hand younger moviegoers perceive product placement as Associated with an invitation to cultural belonging and feelings of emotional security. (De Lorme, Reid, Zimmer, 1999, p. 28) The younger generation grew up in a consumer-based society that is bombarded with advertisements and other promotional items, the younger generation does not generally place a heavy emphasis on product placements. However viewers are generally positive about the placement of product in movies. GÃÆ'Â ¼nnemann (2008) explains that product placement for the automobile industry can positively affect consumers perception of certain automobile brands image as a purchasing factor. He also looked at preference of product placement over advertising for automobiles, which showed European consumers have greater preference of product placement than their American and Asian counterparts where as American consumers on the other hand are the strongest proponents of product placement being more authentic than advertising, whilst Asian consumers have the lowest value in both categories. A study by Nebenzahl, Secunda (1993) on the attitude of film audiences showed that the majority of those interviewed preferred product placement over other forms of promotions because it was unobtrusively integrated into the film. The small minority who object are on ethical grounds. They perceive product placement as a clandestine approach which deludes the consumer and they believe this practice should be forbidden. (Pattyn, 2000). Brand Association: Contexts and Celebrities Williams (2004) shows that placements are contextually integrated and therefore are non-invasive, placement are therefore seen as an experience rather than an advertisement. Contextual integration can be achieved by product placement through character development and plot advancement in films, and product placement can also offer the chance of celebrity endorsement. Nelson and McLeod (2005) show that the credibility of an advertisement depends on the sources credibility; differing views on differing sources can alter the way in which a brand is perceived. The use of celebrities has the ability to influence the source credibility of a brand (Sawyer 2006). This can be achieved by tapping into the celebritys equity (Zyman 2002). Such use of celebrities or actors enables their personality to rub off on the product. (Rust and Varki 1996). This will have the effect of enhancing the brand personality. The use of a highly credible and recognised person can therefore influence levels of exper tise and trust worthiness. Ohanian (1991) found that the perceived expertise of celebritys actually increased purchase intentions, even though the celebrity may have no actual knowledge of the product. It appears here that the product placement allows the attractiveness of a brand to be increased through association with a particular individual, even if that individual would have little actual knowledge or expertise in relation to the product or brand. Ethicality behind product placement Gupta and Gould (1997) define ethically-charged products (or emotionally charged products) as products which especially arouse ethical concern and differences across consumers regarding their marketing and consumption the practice of product placement is sometimes referred to as unethical since audiences are rarely informed that they are watching paid advertising when they presume they are watching creative programming playing on peoples susceptibility (Plaisance 2009). The common ethical concern in many articles is the notion that product placement constitutes a form of subliminal advertising, since products are integrated into films, but no disclaimer is present that warns the viewer of any form of advertising in the film (Gupta Gould, 1997; Snyder, 1992; Nebenzahl Secunda,1993). The practice of product placement could be described as misleading as advertisers interest and intention to influence the viewer may be concealed behind something else, in the case of movies, the context of the story. Among the most controversial subjects, however, is the use of ethically-charged products in film. The most common discussed are the use of cigarettes, alcohol, and guns, this due to the potentially harmful implications their exposure can have on someone. A 1997 study shows some individuals impressions of such placements in films. The study measures undergraduate college students views regarding the acceptability of placing cigarettes, alcohol, and guns in movies. Results indicate that the acceptability of cigarettes, alcohol, and guns are 41.3%, 60.3%, and 38.7%, respectively (Gupta Gould, 1997). There is much concern over cigarette brands being placed in movies, a common argument cites a mandate made and enforced by the United States Surgeon General. It requires that all cigarette ads feature a health warning, making known the products potential hazards to the viewer. Surgeon General health warnings, however, are not found on films that feature these placements (Basil, 1997). Another common concern is that the use of these products will encourage the movies viewers to adopt smoking as a habit. (Basil 1997) and Everett, Schnuth, and Tribble (1998) cite Social Cognitive Theory in their respective articles. This states that through observation we learn a lot. Since moviegoers are actors smoking cigarettes (and in some cases adopting specific brands), and since this is usually portrayed in movies as glamorous the moviegoers may possibly be drawn to the habit (Basil,1997; Everett, Schnuth, Tribble, 1998). Research objectives Investigate attitudes, perceptions and beliefs of viewers towards products and brands after exposure to product placement in movies. Analyse viewers opinions on the ethical issues of product placement in movies. Examine the role of products in movies as a strategic marketing tool. CHAPTER III: Methodology This chapter refines and justifies the methodology deployed in this study. The process for gathering data focused more on that of a qualitative strategy however a quantitative means was also implemented, with the focus on consumer research and understanding consumer thoughts and feelings. The research identified issues such as why consumers have the attitude or perception towards a product or brand which they have experienced through viewing product placement in movies, underlining issues such as acknowledgement, deciphering the message, and even perceptions and attitudes that are based on emotional and cultural feelings sometimes we have a favourable attitude toward an offering simply because it feels good or seems right (Hoyer Macinnis 2008). The quantitative approach was in the form of a questionnaire distributed to 18-25 year olds, the questionnaires allowed data from the focus groups to be tested and extended by from input from a wider range of participents, results are discussed in chapter 4. Qualitative approach Focus groups Focus groups are a form of group interviewing that allows data to be generated through the benefit of communication between research participants (Pope Mays). The qualitative approach was incorporated because of its ability to capitalise on group interaction that provided distinctive types of data. This study is based on consumer attitude and perceptions towards products placement and arising ethical issues, therefore it is only suited that this approach was used as it allows for deeper discussion to take place with point of views coming across from different backgrounds and cultural values and group norms are emphasised. using a qualitative focus groups would produce a greater depth of information rather than just relying on the questionaire with pre-determined responses The two focus groups were used to achieve the following: Investigate attitudes, perceptions and beliefs of viewers towards products and brands after exposure to product placement in movies. Analyse viewers opinions on the ethical issues of product placement in movies. Participants Two focus groups were conducted in an attempt to gather data on consumer attitudes and perceptions and the other on a discussion around ethics. Both focus groups followed the same procedure however groups were split into two, Group A and Group B. This was done to ensure that every subject got the chance to participate and wasnt overshadowed by the over enthusiastic; small groups offer more of an opportunity for people to talk and are more practical to set up and manage (Litosseliti 2003). 6 individuals were selected for each group, Participants from Both Group A and B were selected on the bases of being from different cultural backgrounds and being socially connected. This is because it is important to understand that cultural backgrounds can have an effect on opinions, and it maximises the possibility of exploring the subject from different perspectives (Kitzinger 1995 cited in Litosseliti 2003 P4). It was important for participants to be socially connected to ensure good group dyna mics, this helped the participants be more comfortable and open towards discussion. The selection criteria was18-25 male and females, Gupta and Gould (1997) noted that many products possess gender identifications (p.39). The researchers hypothesized that males generate more favourable responses to products that are depicted as possessing masculine qualities. Therefore the ratio of male to female will be 50:50. This will allow data to be gathered and discussed from both point of views. The advantages of focus groups as shown by Patton (1990) are the checking that takes place within the group that eliminates false views and it is easy to establish consistent views. Group A focused on discussion and questions targeted towards viewers attitudes and perceptions whilst Group B was a discussion on ethical issues. Both groups were shown two movies in one sitting this was time efficient as opposed to showing both movies twice. The movies shown were Iron Man 2 (2010) and Transformers (2007), the movies were chosen for the large amount of products placed with over 45 placements in each movie. The movies were shown in whole as opposed to clips containing products placed, this was to show the product placements in the context of the movie rather than showing clips where the products were dominant. Showing clips of the movie where products were dominant would have emphasised on the product this could have misrepresent the findings as the goal was to evaluate them within the who le movie experience. At the end of both movies the discussion commenced on consumer attitudes and perceptions with Group A, followed by the discussion with Group B on ethical issues. Participents were encouraged to use product placement in other movies as well as the two shown as examples for discussion if they could recall them and the discussion was not based entirely on the movies shown. This allowed participents to discuss product placement that may have been potryaed in a different fashion for example: the use of different actors, characters or setting. It was taken into consideration that the time difference between conducted Group A and B could have an impact on the level of debate given that Group B had to wait, however all participants were University students on the same campus and the study was conducted on University grounds giving the other group time to go elsewhere and continue with other activities whilst they waited. There were a set number of questions used for each focus group and Each individual was required to participate and provide some input to increase the depth of discussion. A simple format of question then discussion was used, questions that arose from discussion would keep the conversation flowing. Conversation flowed freely in order to discover what the subjects found to be interesting and to explore wider attitudes but conversation was re-directed by the moderator when it was felt to be unproductive or pointless (Bryman 2004). It was made clear to participants prior to the discussion that there was no right or wrong answer in an effort to remove social desirability, what the respondent thinks they should say rather than feel (Black 1999). Both discussions were recorded using a CD recorder and were later analysed with key points noted for each discussion. A full play by play transcription was not practical due to the large amount of dialogue and it is felt that a full transcript woul d have broken up narrative flow, however a shorter version of the transcript highlighting key points and questions asked is available in the appendix (())))) by noting key points only it is felt that analysing content is much easier, Bryman (2001) claims that transcribing and coding leads to a loss of context. Quantitative research Questionnaires Questionnaires allow the participant to respond to a set number of questions, questions can be open ended or closed ended, and for the purpose of this particular research aspect closed ended questions were used. A closed ended question is amicable when the dimensions of a variable have been diagnosed. Closed ended questions expose participants to the same response categories and allow standardized quantitative statistical analysis (Johnson Christensen 2010). The purpose of the questionnaire was to expand further on the data that was concluded from the focus groups (this will be discussed further in chapter 4). The questionaires focused on getting participant responses for the purpose of conformatory research (Johnson Christensen 2010) in which specific data from the focus groups was tested. This gave the results more creadability and the questionnaire would allow the study to benefit from areas of investigation that the focus groups may have failed to answer or provide enough infor mation on. 100 questionnaires were distributed around university campuses as this was the most convienent location to find participents that meet the 18-25 demographic, however it was guaranteed that that all participents would be of the age 15 questions were composed and pre, the questionnaire can be viewed in the appendix (p)))) One to one interviews Interviews will aim to meet objective The research method that will be used here is one to one interviews with either product placement agencies or companies such as Sony. These interviews will be telephone based as availability to meet face to face with businesses is a little tricky given the time frame. Given the tendency for businesses to turn down students the agency or business that is to be selected will depend on the rate at which each representative replies. The Interviews will allow these companies to convey product placement from a strategic point of view and explain the practice from their own situation, perspective and in their own words. The interviews are based on not only conversation of product placement but with an aim to generate responses from the interviewee on intended consumer behaviour. The procedure will be to follow a script for the interview investigation which can be outlined by characterising a methodological awareness of questions, a focus on the dynamics of interaction between interviewer and interviewee, and also critical attention to what is said. CHAPTER IV: Results, analysis and discussion Introduction This chapter will focus on presenting and discussing the findings from the research conducted. Due to the large amount of field work that was employed for the purpose of the study, results from both the focus groups and the questionnaires will be compared and contrasted leading to the denouement of the findings. Analysis will be based on the most pertinent data that was found. qualitative researchers needs to communicate the findings in an honest and systematic manner, disseminating the richness of the findings and hence the experience of the researchers. (Easterby-Smith et al. 2002). Discussion has been categorised in three sections, each section will address the research objectives of this study and how the findings have helped in achieving those objectives. Attitudes and perceptions towards product placement will be analysed and discussed first highlighting the points that were extracted from both quantitative and qualitative research, followed by the discussion on ethical issues towards product placement practice. Finally the interview with the industry specialist will be discussed, analysing the role of product placement in moves as a strategic marketing tool. The data that formed this discussion can be viewed in the appendix ( ) Consumer attitudes and perceptions The first area of study was the attitudes and perceptions of viewers between the ages of 18-25 towards product placement in Hollywood movies and the products or brands that are being placed. Brand recall The first focus group identified that it was hard to recall a lot of the products that were placed within the movies. It was felt that this is because of the large amount of placements in the movies to begin with. participants claimed that they could only recall the placements that were dominant and showed a stronger on screen presence than other brands or products. Amongst the placements that were most effective were car brands, it was made clear that cars were amongst the top to be noticed because its repetition in the movies made it a strong focus of the overall viewing experience. The most noticeable examples were Audi in Iron Man 2 and Cadillac in Transformers. brands in other movies were also identified as being memorable such as Toyota In fast and furious and Aston Martin in Die Another Day. Brands that somehow were incorporated into the story of the movie had greater recognition; this is because they stood out more. As mentioned in chapter 2, prominent placements achieve high er levels of recall in movies (Gupta and lord 1998). Other placements that were regarded as being effective in terms of prominence were those that had audio presence as well as physical, Oracle and Vanity Affair from Iron Man 2 where amongst the ones that were recalled. Participants revealed that the audio presence and physical presence (placement being used) generated more attention as opposed to having a brand name in the foreground. A combined 66%percent of the respondents to the questionnaire that was carried out following the focus group agreed that products stand out more when a character uses or mentions the product/brand (see table.1). Whilst the recall of a brand is an important factor in how effective the placement is, the pace or complexity of the movie can cause a distraction from the placements. The focus group suggested that some of the placements were lost due to the pace of the movies shown. One participant commented that placements in the background of slower paced movies were more effective than those placed in action movies or those with a faster pace. It was later commented that products placed within faster paced movies needed to be emphasised on more to be noticed. It therefore appears that the genre of the movie will have an effect on the product placement with in it. The research suggests that viewers will have difficulty to recall brands/products that are placed in the background or foreground of a fast past movie. However if a product is used or mentioned by a character then this increases the chances of the viewer recall. On the other hand placements within slower paced movies are easier to recal l increasing brand awareness. This indicates that positioning of the product is a valuable consideration when the goal is to increase awareness Attitude product placement The overall suggestion from this study in regards to attitudes towards product placement within the movie is that the group members strongly appreciated the presence of products within movies. The research suggests that viewers acceptability of product placement within movies is on the basis that it enhances the realism of the movie by combining products that are seen on a daily bases. One example of this found in the Movie Iron Man 2 with the insertion of CNN and Larry King, the focus group agreed that these placements gave them the feeling that the event of the movie was taking place in our world as appose to a fantasy setting. They felt that these types of placements amplified the movies realism. The group compared the differences between having placements in movie to not having any. The findings suggested that having no product placement or having fictitious products in a movie reflected on the setting of the movie, it would create a fantasy world for viewers which was fine if it was a movie in the category of Lord of the Rings or Avatar. Williams (2004) suggested that product placements are contextually integrated into movies. Therefore It is important to note that placements are deemed to be acceptable by viewers because of the reflection these products have on real life. In the survey questionnaire that was carried out, a combined 63 out of 100 respondents agreed and strongly agreed that placements add to the realism of the movie (see table.2). TABLE 2: Viewers opinion on products adding realism to movies This confirms the findings from the focus group; however there are a large number of respondents that validate that they disagree with the statement. It is mentioned in the literature that some see product placement practice as an invasive one that sews itself a new seam in the blanket of brands that covers a strong consumer-based society (Phillips Purdie 1993). This is one suggestion as to why respondents to the survey questions may have disagreed. It could be argued that some viewers find placements invasive. however the findings from the focus group indicates that whilst placements add realism, the ones that appear without contributing to the story line or are emphasised in a way that seems to be out of context in regards to the movie can be described as annoying or blatant advertising. The views of the group were not that this was invasive but more or on the line of annoying. Examples that were noticeable were the Panasonic placement in Transformers. In a scene that was devoted to show a Branded memory chip, the character tilts the product towards the camera revealing the brand name. It was suggested that this had no association to the story line nor was it placed to emphasis realism; one participant described it as being an obvious plug. The common theme was the emphasis on the annoyance of pushy advertising, this research commends Balsubramanian et al (2006) who suggested that blatant placements have the ability to irritate. Therefore if product placement is to appear, the product needs to contribute to the content of the movie in order to generate positive attitudes and acceptability from the viewers. But it is important to distinguish between attitudes towards product placement practice (discussed here) and attitudes towards the brands being placed. This leads us to the next area of this study. Attitudes and perception towards brands In the previous paragraph we discussed the attitudes towards product placement; we will now discuss viewer attitudes and perceptions towards the product/brands that are placed. A common theme that was identified from the focus group discussion was that viewers did not generate a positive or negative attitude towards a product or brand because of the way it was placed in the movie. The findings from this study suggest that whilst awareness was created there was little change in attitudes towards the brands that were placed. one viewer generated a positive attitude towards the use of the Everlast in Iron Man 2 in a scene where Robert Downey Jr is boxing whilst exhibiting the branded clothing. The viewer associated with the bra Effect of Product Placement in Films Effect of Product Placement in Films CHAPTER II: Literature Review Product placement Product placement in movies is no new phenomenon as Lehu (2007), describes product placement as the location or more accurately the integration of a product or a brand into a film or televised series. This form of advertising has been around for sometime although its not traditional advertising it speaks to an audience in a different form of communication which is either in your face or subliminal messages. Product placement comes in a number of different forms including visual, audio and a combination of the two combined. Visual product placement Is a visual representation of a brand in a movie, This includes strategically positioning a brand in the background or being used by the actor of a scene, displaying a billboard or some other form of visual advertisement in a scene, and any other visual representation of a brand-name product without any relevant message or sounds on the audio track which draw attention to the product (Gupta Lord, 1998). An example of this is Daniel Craig u sing a Sony Vaio in the movie Casino Royal (2006). See Appendix A. Audio representation of a brand can be the mention of the product in script but not necessarily shown on screen for example the movie Wall Street (1987) where Martin Sheens character says to a server, Get this kid a Molson Light (Gupta Lord, 1998). In combining these two formats Gupta and Lord (1998) defines audio-visual placement as the visual appearance of a brand with a verbal mention of the brand name or a brand- relevant message for example The Bellagio Hotel in Las Vegas is seen and talked about in the movie Oceans eleven (2001) (Lehu 2007). Product placement, as a marketing tool, has many advantages due to its captive audience, the social nature that it is being viewed in and the lack of clutter, such as other advertisements (Dunnett Hoek, 1996). This form of communication is described as being an effective technique as Jhonson (2009) explains For subliminal suggestion to be effective an individual must be relaxed and open to suggestion. The subconscious mind is more open to suggestion when a person is relaxed. This practice has not gone without controversy, however, as its use is often debated by moviegoers and media experts. While some moviegoers feel that the use of product placement enhances a film by adding to its realism (Govani 1999). Others see the practice as an invasive one that sews itself a new seam in the blanket of brands that covers a strong consumer-based society (Phillips Purdie 1993). Some supporters of the practice argue that product placement allows them to relate to the characters (DeLorme, Reid, Zimmer, 1999) Product placement strategy Strategy Dates back a few decades, in an example where Joan Crawford is drinking Jack Daniels whisky in the 1945 production Mildred pierce (Wasko 1995). Back in these earlier times product placement was a casual affair, property masters would contact a local Jack Daniels distributer asking for the product to be used in the film. Today the product placement is more deliberate and sophisticated, Divisions dedicated to paying to have their goods inserted strategically into movies are of the norm for large corporations this is to gain access to what is seen as a glamorous medium with a relatively captive audience. Coca-Cola and Pepsi are amongst a number of companies who have formed in house divisions dedicated directly to product placement or Hollywood advertising (Wasko 1995). The belief of companies associated with product placement is that if a movie grosses $50 million, the advertiser has reached an audience of 13.7 million in theatre viewers, assuming this the movie will likely sell in DVDS/Videos adding additional impressions per placement along with celebrity credibility bought by the use of the product. (Wasko 1995). Kardes (2008) adds to the argument by stating that When a brand is shown in a movie it is definitely seen but a broadcast commercial can be skipped via the fast forward button on a DVR. However narrative coherence can be disrupted by strategies used to market products. Music videos related to films is used as an example The promotion of some features is helped by the use of videos featuring music from the film, examples include Flashdance (1983) , Footloose (1984), Purple Rain (1984), staying alive (1983) and The Bodyguard (1992) (King 2002). In these films the excess created by the conjunction of music and image creates a module separa te from the narrative, working against the sequential structuring of the film. Product placement within the Hollywood film industry Product placement increased dramatically since the appearance of Reeses Pieces in the 1982 Movie E.T: The Extra-Terrestrial caused the sales of the product to increase by 68%. (Balasubramanian et al 2006). Today product placement in movies is highly noticeable. In the film Minority Report (2002) at least 15 brands where placed, including Nokia, Pepsi and Lexus. In Die Another Day (2002) there were cameos from Jaguar, Aston Martin and Thunderbird, which are all owned by the Ford motor group (Jobber 2004). However alongside soft drinks one of the most common products placed in movies are cars. BMW invested ÂÂ £20 million on the placement of its Z3 roadster within the movie Goldeneye (1995) and the use of other advertising media to support the placement and create awareness (Fill 2005) Gupta and lord (1998) focus on studies concerning recall of brands placed within movies that have been undertaken; they found that prominent placements achieved higher levels of recall. Morton and Friedman (2002) mention that any contact with a brand in a film will help influence purchasing decisions. It is argued by Joachimsthaler and Aker (1997) that visibility of brands are underestimated as it signals leadership, quality and success, people like to know brands even if they have never used them. This appears to indicate that the primary benefit of placement in movies is the increase of brand recognition. Consumer behaviour Consumer behaviour is the study of individuals, groups or organisations and the process they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. (Sharma, A. 2006). The study of consumer behaviour helps organisations improve their marketing strategies by understanding the psychology behind consumer thoughts, feelings and by understanding his or her environment all which have an effect on the action towards a brand or product. Tyagi and Kumar (2004) state that there is a relationship between consumer behaviour and his attitudes, communication with him and how to motivate him. Family, social and cultural dimensions of consumer behaviour have a role to play. Product placement isnt about sales its about brand awareness claims expert Samuel Turcotte. (Galician 2004). Whilst awareness may be generated attitudes and perception also start to form towards the brand. Attitude formation can be on the bases of cognitive responses to stimuli or information of other sources; cognitive thoughts are responses we have to a communication. Positive thoughts will generally have a positive affect on attitudes whereas negative thoughts will have negative attitude formation (Hoyer Macinnis, 2008). Age has another implication on attitudes and perceptions of product placement. In their 1999 study, DeLorme, Reid, and Zimmer interviewed younger audiences (aged 18-21) and older audiences (aged 35-48) in a bid to compare different views on product placement. A number of focus groups resulted in the finding of distinct and diverse perspectives among many of the study samples. According to their research, (DeLorme, Reid, and Zimmer 1999) found that older audiences generally perceive product placements as implications of a changing society and the current use of product placement was an indication of a major cultural shift, according to the study older moviegoers associated brand props with feelings of insecurity, frustration, and fear of change (DeLorme, Reid, Zimmer, 1999, p.24) various examples of such feelings were provided. On the other hand younger moviegoers perceive product placement as Associated with an invitation to cultural belonging and feelings of emotional security. (De Lorme, Reid, Zimmer, 1999, p. 28) The younger generation grew up in a consumer-based society that is bombarded with advertisements and other promotional items, the younger generation does not generally place a heavy emphasis on product placements. However viewers are generally positive about the placement of product in movies. GÃÆ'Â ¼nnemann (2008) explains that product placement for the automobile industry can positively affect consumers perception of certain automobile brands image as a purchasing factor. He also looked at preference of product placement over advertising for automobiles, which showed European consumers have greater preference of product placement than their American and Asian counterparts where as American consumers on the other hand are the strongest proponents of product placement being more authentic than advertising, whilst Asian consumers have the lowest value in both categories. A study by Nebenzahl, Secunda (1993) on the attitude of film audiences showed that the majority of those interviewed preferred product placement over other forms of promotions because it was unobtrusively integrated into the film. The small minority who object are on ethical grounds. They perceive product placement as a clandestine approach which deludes the consumer and they believe this practice should be forbidden. (Pattyn, 2000). Brand Association: Contexts and Celebrities Williams (2004) shows that placements are contextually integrated and therefore are non-invasive, placement are therefore seen as an experience rather than an advertisement. Contextual integration can be achieved by product placement through character development and plot advancement in films, and product placement can also offer the chance of celebrity endorsement. Nelson and McLeod (2005) show that the credibility of an advertisement depends on the sources credibility; differing views on differing sources can alter the way in which a brand is perceived. The use of celebrities has the ability to influence the source credibility of a brand (Sawyer 2006). This can be achieved by tapping into the celebritys equity (Zyman 2002). Such use of celebrities or actors enables their personality to rub off on the product. (Rust and Varki 1996). This will have the effect of enhancing the brand personality. The use of a highly credible and recognised person can therefore influence levels of exper tise and trust worthiness. Ohanian (1991) found that the perceived expertise of celebritys actually increased purchase intentions, even though the celebrity may have no actual knowledge of the product. It appears here that the product placement allows the attractiveness of a brand to be increased through association with a particular individual, even if that individual would have little actual knowledge or expertise in relation to the product or brand. Ethicality behind product placement Gupta and Gould (1997) define ethically-charged products (or emotionally charged products) as products which especially arouse ethical concern and differences across consumers regarding their marketing and consumption the practice of product placement is sometimes referred to as unethical since audiences are rarely informed that they are watching paid advertising when they presume they are watching creative programming playing on peoples susceptibility (Plaisance 2009). The common ethical concern in many articles is the notion that product placement constitutes a form of subliminal advertising, since products are integrated into films, but no disclaimer is present that warns the viewer of any form of advertising in the film (Gupta Gould, 1997; Snyder, 1992; Nebenzahl Secunda,1993). The practice of product placement could be described as misleading as advertisers interest and intention to influence the viewer may be concealed behind something else, in the case of movies, the context of the story. Among the most controversial subjects, however, is the use of ethically-charged products in film. The most common discussed are the use of cigarettes, alcohol, and guns, this due to the potentially harmful implications their exposure can have on someone. A 1997 study shows some individuals impressions of such placements in films. The study measures undergraduate college students views regarding the acceptability of placing cigarettes, alcohol, and guns in movies. Results indicate that the acceptability of cigarettes, alcohol, and guns are 41.3%, 60.3%, and 38.7%, respectively (Gupta Gould, 1997). There is much concern over cigarette brands being placed in movies, a common argument cites a mandate made and enforced by the United States Surgeon General. It requires that all cigarette ads feature a health warning, making known the products potential hazards to the viewer. Surgeon General health warnings, however, are not found on films that feature these placements (Basil, 1997). Another common concern is that the use of these products will encourage the movies viewers to adopt smoking as a habit. (Basil 1997) and Everett, Schnuth, and Tribble (1998) cite Social Cognitive Theory in their respective articles. This states that through observation we learn a lot. Since moviegoers are actors smoking cigarettes (and in some cases adopting specific brands), and since this is usually portrayed in movies as glamorous the moviegoers may possibly be drawn to the habit (Basil,1997; Everett, Schnuth, Tribble, 1998). Research objectives Investigate attitudes, perceptions and beliefs of viewers towards products and brands after exposure to product placement in movies. Analyse viewers opinions on the ethical issues of product placement in movies. Examine the role of products in movies as a strategic marketing tool. CHAPTER III: Methodology This chapter refines and justifies the methodology deployed in this study. The process for gathering data focused more on that of a qualitative strategy however a quantitative means was also implemented, with the focus on consumer research and understanding consumer thoughts and feelings. The research identified issues such as why consumers have the attitude or perception towards a product or brand which they have experienced through viewing product placement in movies, underlining issues such as acknowledgement, deciphering the message, and even perceptions and attitudes that are based on emotional and cultural feelings sometimes we have a favourable attitude toward an offering simply because it feels good or seems right (Hoyer Macinnis 2008). The quantitative approach was in the form of a questionnaire distributed to 18-25 year olds, the questionnaires allowed data from the focus groups to be tested and extended by from input from a wider range of participents, results are discussed in chapter 4. Qualitative approach Focus groups Focus groups are a form of group interviewing that allows data to be generated through the benefit of communication between research participants (Pope Mays). The qualitative approach was incorporated because of its ability to capitalise on group interaction that provided distinctive types of data. This study is based on consumer attitude and perceptions towards products placement and arising ethical issues, therefore it is only suited that this approach was used as it allows for deeper discussion to take place with point of views coming across from different backgrounds and cultural values and group norms are emphasised. using a qualitative focus groups would produce a greater depth of information rather than just relying on the questionaire with pre-determined responses The two focus groups were used to achieve the following: Investigate attitudes, perceptions and beliefs of viewers towards products and brands after exposure to product placement in movies. Analyse viewers opinions on the ethical issues of product placement in movies. Participants Two focus groups were conducted in an attempt to gather data on consumer attitudes and perceptions and the other on a discussion around ethics. Both focus groups followed the same procedure however groups were split into two, Group A and Group B. This was done to ensure that every subject got the chance to participate and wasnt overshadowed by the over enthusiastic; small groups offer more of an opportunity for people to talk and are more practical to set up and manage (Litosseliti 2003). 6 individuals were selected for each group, Participants from Both Group A and B were selected on the bases of being from different cultural backgrounds and being socially connected. This is because it is important to understand that cultural backgrounds can have an effect on opinions, and it maximises the possibility of exploring the subject from different perspectives (Kitzinger 1995 cited in Litosseliti 2003 P4). It was important for participants to be socially connected to ensure good group dyna mics, this helped the participants be more comfortable and open towards discussion. The selection criteria was18-25 male and females, Gupta and Gould (1997) noted that many products possess gender identifications (p.39). The researchers hypothesized that males generate more favourable responses to products that are depicted as possessing masculine qualities. Therefore the ratio of male to female will be 50:50. This will allow data to be gathered and discussed from both point of views. The advantages of focus groups as shown by Patton (1990) are the checking that takes place within the group that eliminates false views and it is easy to establish consistent views. Group A focused on discussion and questions targeted towards viewers attitudes and perceptions whilst Group B was a discussion on ethical issues. Both groups were shown two movies in one sitting this was time efficient as opposed to showing both movies twice. The movies shown were Iron Man 2 (2010) and Transformers (2007), the movies were chosen for the large amount of products placed with over 45 placements in each movie. The movies were shown in whole as opposed to clips containing products placed, this was to show the product placements in the context of the movie rather than showing clips where the products were dominant. Showing clips of the movie where products were dominant would have emphasised on the product this could have misrepresent the findings as the goal was to evaluate them within the who le movie experience. At the end of both movies the discussion commenced on consumer attitudes and perceptions with Group A, followed by the discussion with Group B on ethical issues. Participents were encouraged to use product placement in other movies as well as the two shown as examples for discussion if they could recall them and the discussion was not based entirely on the movies shown. This allowed participents to discuss product placement that may have been potryaed in a different fashion for example: the use of different actors, characters or setting. It was taken into consideration that the time difference between conducted Group A and B could have an impact on the level of debate given that Group B had to wait, however all participants were University students on the same campus and the study was conducted on University grounds giving the other group time to go elsewhere and continue with other activities whilst they waited. There were a set number of questions used for each focus group and Each individual was required to participate and provide some input to increase the depth of discussion. A simple format of question then discussion was used, questions that arose from discussion would keep the conversation flowing. Conversation flowed freely in order to discover what the subjects found to be interesting and to explore wider attitudes but conversation was re-directed by the moderator when it was felt to be unproductive or pointless (Bryman 2004). It was made clear to participants prior to the discussion that there was no right or wrong answer in an effort to remove social desirability, what the respondent thinks they should say rather than feel (Black 1999). Both discussions were recorded using a CD recorder and were later analysed with key points noted for each discussion. A full play by play transcription was not practical due to the large amount of dialogue and it is felt that a full transcript woul d have broken up narrative flow, however a shorter version of the transcript highlighting key points and questions asked is available in the appendix (())))) by noting key points only it is felt that analysing content is much easier, Bryman (2001) claims that transcribing and coding leads to a loss of context. Quantitative research Questionnaires Questionnaires allow the participant to respond to a set number of questions, questions can be open ended or closed ended, and for the purpose of this particular research aspect closed ended questions were used. A closed ended question is amicable when the dimensions of a variable have been diagnosed. Closed ended questions expose participants to the same response categories and allow standardized quantitative statistical analysis (Johnson Christensen 2010). The purpose of the questionnaire was to expand further on the data that was concluded from the focus groups (this will be discussed further in chapter 4). The questionaires focused on getting participant responses for the purpose of conformatory research (Johnson Christensen 2010) in which specific data from the focus groups was tested. This gave the results more creadability and the questionnaire would allow the study to benefit from areas of investigation that the focus groups may have failed to answer or provide enough infor mation on. 100 questionnaires were distributed around university campuses as this was the most convienent location to find participents that meet the 18-25 demographic, however it was guaranteed that that all participents would be of the age 15 questions were composed and pre, the questionnaire can be viewed in the appendix (p)))) One to one interviews Interviews will aim to meet objective The research method that will be used here is one to one interviews with either product placement agencies or companies such as Sony. These interviews will be telephone based as availability to meet face to face with businesses is a little tricky given the time frame. Given the tendency for businesses to turn down students the agency or business that is to be selected will depend on the rate at which each representative replies. The Interviews will allow these companies to convey product placement from a strategic point of view and explain the practice from their own situation, perspective and in their own words. The interviews are based on not only conversation of product placement but with an aim to generate responses from the interviewee on intended consumer behaviour. The procedure will be to follow a script for the interview investigation which can be outlined by characterising a methodological awareness of questions, a focus on the dynamics of interaction between interviewer and interviewee, and also critical attention to what is said. CHAPTER IV: Results, analysis and discussion Introduction This chapter will focus on presenting and discussing the findings from the research conducted. Due to the large amount of field work that was employed for the purpose of the study, results from both the focus groups and the questionnaires will be compared and contrasted leading to the denouement of the findings. Analysis will be based on the most pertinent data that was found. qualitative researchers needs to communicate the findings in an honest and systematic manner, disseminating the richness of the findings and hence the experience of the researchers. (Easterby-Smith et al. 2002). Discussion has been categorised in three sections, each section will address the research objectives of this study and how the findings have helped in achieving those objectives. Attitudes and perceptions towards product placement will be analysed and discussed first highlighting the points that were extracted from both quantitative and qualitative research, followed by the discussion on ethical issues towards product placement practice. Finally the interview with the industry specialist will be discussed, analysing the role of product placement in moves as a strategic marketing tool. The data that formed this discussion can be viewed in the appendix ( ) Consumer attitudes and perceptions The first area of study was the attitudes and perceptions of viewers between the ages of 18-25 towards product placement in Hollywood movies and the products or brands that are being placed. Brand recall The first focus group identified that it was hard to recall a lot of the products that were placed within the movies. It was felt that this is because of the large amount of placements in the movies to begin with. participants claimed that they could only recall the placements that were dominant and showed a stronger on screen presence than other brands or products. Amongst the placements that were most effective were car brands, it was made clear that cars were amongst the top to be noticed because its repetition in the movies made it a strong focus of the overall viewing experience. The most noticeable examples were Audi in Iron Man 2 and Cadillac in Transformers. brands in other movies were also identified as being memorable such as Toyota In fast and furious and Aston Martin in Die Another Day. Brands that somehow were incorporated into the story of the movie had greater recognition; this is because they stood out more. As mentioned in chapter 2, prominent placements achieve high er levels of recall in movies (Gupta and lord 1998). Other placements that were regarded as being effective in terms of prominence were those that had audio presence as well as physical, Oracle and Vanity Affair from Iron Man 2 where amongst the ones that were recalled. Participants revealed that the audio presence and physical presence (placement being used) generated more attention as opposed to having a brand name in the foreground. A combined 66%percent of the respondents to the questionnaire that was carried out following the focus group agreed that products stand out more when a character uses or mentions the product/brand (see table.1). Whilst the recall of a brand is an important factor in how effective the placement is, the pace or complexity of the movie can cause a distraction from the placements. The focus group suggested that some of the placements were lost due to the pace of the movies shown. One participant commented that placements in the background of slower paced movies were more effective than those placed in action movies or those with a faster pace. It was later commented that products placed within faster paced movies needed to be emphasised on more to be noticed. It therefore appears that the genre of the movie will have an effect on the product placement with in it. The research suggests that viewers will have difficulty to recall brands/products that are placed in the background or foreground of a fast past movie. However if a product is used or mentioned by a character then this increases the chances of the viewer recall. On the other hand placements within slower paced movies are easier to recal l increasing brand awareness. This indicates that positioning of the product is a valuable consideration when the goal is to increase awareness Attitude product placement The overall suggestion from this study in regards to attitudes towards product placement within the movie is that the group members strongly appreciated the presence of products within movies. The research suggests that viewers acceptability of product placement within movies is on the basis that it enhances the realism of the movie by combining products that are seen on a daily bases. One example of this found in the Movie Iron Man 2 with the insertion of CNN and Larry King, the focus group agreed that these placements gave them the feeling that the event of the movie was taking place in our world as appose to a fantasy setting. They felt that these types of placements amplified the movies realism. The group compared the differences between having placements in movie to not having any. The findings suggested that having no product placement or having fictitious products in a movie reflected on the setting of the movie, it would create a fantasy world for viewers which was fine if it was a movie in the category of Lord of the Rings or Avatar. Williams (2004) suggested that product placements are contextually integrated into movies. Therefore It is important to note that placements are deemed to be acceptable by viewers because of the reflection these products have on real life. In the survey questionnaire that was carried out, a combined 63 out of 100 respondents agreed and strongly agreed that placements add to the realism of the movie (see table.2). TABLE 2: Viewers opinion on products adding realism to movies This confirms the findings from the focus group; however there are a large number of respondents that validate that they disagree with the statement. It is mentioned in the literature that some see product placement practice as an invasive one that sews itself a new seam in the blanket of brands that covers a strong consumer-based society (Phillips Purdie 1993). This is one suggestion as to why respondents to the survey questions may have disagreed. It could be argued that some viewers find placements invasive. however the findings from the focus group indicates that whilst placements add realism, the ones that appear without contributing to the story line or are emphasised in a way that seems to be out of context in regards to the movie can be described as annoying or blatant advertising. The views of the group were not that this was invasive but more or on the line of annoying. Examples that were noticeable were the Panasonic placement in Transformers. In a scene that was devoted to show a Branded memory chip, the character tilts the product towards the camera revealing the brand name. It was suggested that this had no association to the story line nor was it placed to emphasis realism; one participant described it as being an obvious plug. The common theme was the emphasis on the annoyance of pushy advertising, this research commends Balsubramanian et al (2006) who suggested that blatant placements have the ability to irritate. Therefore if product placement is to appear, the product needs to contribute to the content of the movie in order to generate positive attitudes and acceptability from the viewers. But it is important to distinguish between attitudes towards product placement practice (discussed here) and attitudes towards the brands being placed. This leads us to the next area of this study. Attitudes and perception towards brands In the previous paragraph we discussed the attitudes towards product placement; we will now discuss viewer attitudes and perceptions towards the product/brands that are placed. A common theme that was identified from the focus group discussion was that viewers did not generate a positive or negative attitude towards a product or brand because of the way it was placed in the movie. The findings from this study suggest that whilst awareness was created there was little change in attitudes towards the brands that were placed. one viewer generated a positive attitude towards the use of the Everlast in Iron Man 2 in a scene where Robert Downey Jr is boxing whilst exhibiting the branded clothing. The viewer associated with the bra