Answer:
ROI doubles
Explanation:
The formula to compute the return on investment is shown below:
Return on investment = (Annual income) ÷ (Initial investment)
If we take the first case,
Annual income = $100
And, the investment = $500
So, the ROI = $100 ÷ $500 = 0.2
If the annual income doubles i.e $200
So, the ROI = $200 ÷ $500 = 0.4
So in the given case, the ROI also doubles
3. The Johnson Company will pay an annual dividend of $2.05 next year. The company has increased its dividend by 3.5% a year for the past twenty years and expects to continue doing so. What will a share of this stock be worth 4 years from now if the required return is 14%
Answer:
A share of this stock be worth$ 21.88 four years from now
Explanation:
Amount of annual dividend that will be paid the next year = $ 2.05
increase in dividend by 3.5% = [tex]\frac{100+3.5}{100}[/tex] = increase by a factor of 1.035
Since there is a 14% return, overall increase in dividend = [tex]\frac{1.035}{0.14 - 0.035}[/tex] = 9.857
Note:
0.035 was obtained from [tex]\frac{3.5}{100}[/tex]= 0.035 (dividend increase)
0.14 was obtained from [tex]\frac{1.4}{100}[/tex] = 0.14 (percentage return required)
over the next 20 years his new value of dividend will be
New value of dividend = $2.05 + 9.857 = 11.907
Converting to a percentage,
[tex]\frac{100+11.907}{100}[/tex]= 1.1907
Net dividend increase =
Dividend returns minus increase in dividend for 20 years is given as
14% - 3.5% = 10.5%
From the above, the
Worth of a share of his stock 4 years from now can be computed by
(dividend X Percentage increase in 20 years)/ net percent dividend increase + (increase in 4 years/ net dividend increase) X 100
[tex]\frac{(2.05 (1.1907)) }{10.5}[/tex] + [tex]\frac{(2.2729)}{10.5}[/tex] × 100 =$21.88
∴ A share of this stock be worth$ 21.88 four years from now
Hope is desperate for the new designer purse that she saw while window shopping at her local mall. She knew every girl in school would covet her bag and wish to be like her. When she walked in, she whipped out her credit card, and purchased the $5,000 bag. This kind of purchasing is called:
Conspicuous consumption
Answer:
Conspicuous consumption
Explanation:
Based on the scenario being described within the question it can be said that this kind of purchasing is known as Conspicuous consumption. This term refers to when an individual buys goods or services with the main focus/goal of publicly display their economic prowess. Which is what Hope is doing in this scenario by buying an expensive designer bag in order to make her peers jealous.
For each user of accounting information, identify if the user would use financial accounting or managerial accounting.
a. investor
b. banker
c. IRS
d. manager of the business
e. controller
f. stockholder
g. human resource director
h. creditor
Answer:
a. Investor - Financial Accounting;
b. Banker - Financial Accounting;
c. IRS - Financial Accounting;
d. Manager of the business - Managerial Accounting;
e. Controller - Managerial Accounting;
f. Stockholder - Financial Accounting;
g. Human resource director - Managerial Accounting;
h. Creditor - Financial Accounting.
Explanation:
Requirement A - D
a. Investor - Financial Accounting - Investor decides after evaluating the past performance of a company whether to invest or not. They cannot provide any upper-level decisions.
b. Banker - Financial Accounting - Preparing financial statements or boosting company performance is the crucial working area for a banker. They cannot make a decision.
c. IRS - Financial Accounting - Internal Revenue Service deals with the financial statements of an organization and not deals with the organization's decision.
d. Manager of the business - Managerial Accounting - When a branch of an accounting discusses how to make managerial decisions to achieve the objective with the managers or administration, it is termed as managerial accounting. The manager of a business decides what the necessary things for a company are.
Requirement E - H
e. Controller - Managerial Accounting - The controller of an organization directly deals with the managers regarding various managerial decisions.
f. Stockholder - Financial Accounting - Stockholders cannot make any decisions. They can only give their opinions to alter the situation to maximize the value of the shares.
g. Human resource director - Managerial Accounting - Human resource director makes recruiting-related decisions that are internal. As managerial accounting deals with internal decisions, the human resource director is under the managerial accounting category.
h. Creditor - Financial Accounting - Creditors can ask for early payment, but they cannot urge the mangers to make any decisions.
The correct methods of accounting to be used for the below phenomenon will be -
Investor - Financial AccountingBanker - Financial accountingIRS - Financial accountingManager of the business - Managerial accounting Controller - Managerial accountingStockholder - Financial accounting Human resource editor - Managerial accountingCreditor - Financial accounting.Financial accounting is referred to as that branch of accounting, which deals with the financial aspects of a business and managerial accounting deals with management of the firm by accounting principles.
Methods of AccountingFinancial accounting is a process of accounting that involves recording, classifying and summarizing the accounting transactions of a firm over a period of time in chronological order.Managerial accounting is that branch which helps in analysis and interpretation of a firm's performance during an accounting financial period.
Hence, the different methods of accounting followed for specific tasks are as aforementioned in the part above.
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Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog’s ancestry, but Alyssa believes that the dog came from champion lines and agrees to the price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract based on her mistake?
Answer:
Probably not, because Alyssa made a mistake about the dog's value, not a mistake about material fact.
Explanation:
When Sierra offered to sell the dog to Allysa, Allysa failed to discuss the ancestry of the puppy. She wrongly believed the dog came from a line of champions.
On finding out the dog is only worth $200, she will not be able to rescind the contract because the onus to ask all relevant questions about the purchase before accepting is on her.
She made the mistake of assuming the dog was worth $800. She made a mistake about the dog's value and not the material fact.
Answer:
Likely not, unless Sierra agrees, which she won’t unless she wants to give Alyssa $600
Explanation:
Sierra probably tricked Alyssa on purpose, so she won’t want to go back on the deal, because she was the one on the gaining side of it
Which of the following best describes how to account for the difference between a company's financial income and taxable income, under generally accepted accounting principles? Computation of deferred income tax based on temporary and permanent differences. Computation of deferred income tax based on permanent differences. Computation of income tax expense based on taxable income. Computation of deferred tax assets and liabilities based on temporary differences.
Answer:
The answer is D. Computation of deferred tax assets and liabilities based on temporary differences.
Explanation:
Financial income is the revenue minus total cost before deducting for tax. It is known as income before tax.
Taxable income is the amount on which tax is to be deducted from. Usually financial income will be used as the base figure for determining the tax payable.
Deferred tax liability is the tax payable i.e the amount of tax that will be carried to the next accounting year.
Deferred tax liability is the tax receivable. This arises as a result of over payment of tax in the current period which the tax authority will need to refund.
The temporary differences are the differences between the net book value (carrying amount) of a liability and an asset and its tax base(financial income) . The tax base is the financial income.
So the computation of tax asset and liability is based on temporary differences
Sven purchases a house valued at $80,000 and has a mortgage of $65,000. Several years later he decides to sell the house. The market value of the house has increased to $110,000 and his loan debt is down to $50,000. What is Sven’s equity in the house?
Answer:
$60,000
Explanation:
Given:
Purchase price = $80,000
Old mortgage value = $65,000
Market value of house = $110,000
New mortgage value = $50,000
Equity in the house = ?
Computation of Equity in the house :
Equity in the house = Market value of house - New mortgage value
Equity in the house = $110,000 - $50,000
Equity in the house = $60,000
TONI&GUY is a global hairdressing and education business headquartered in England. It has recently opened salons in Mongolia, adding to its numerous salons worldwide. TONI&GUY allows foreign businesspeople to use its name, logo, methods of operation, advertising, and products. In exchange, TONI&GUY receives a financial commitment and an agreement to conduct business in accordance with its standard of operations. TONI&GUY is engaging in_____.
Answer:
Franchising
Explanation:
There are various ways to expand a business, one of them is franchising. Tony and guy is a hairdressing company that operates in multiple countries. They use franchising as a way to expand; they allow frogmen and local people to use their name, logo and methods of operations. Just by an agreement tony and guy give their franchises to people across the globe. So, tony and guy is engaging in franchising.
Neot was just promoted, and what she's most excited about is that she now gets a corner office and a designated spot in the employee parking lot. According to Maslow's hierarchy of needs, which level of needs does this best reflect
Answer:
Esteem needs.
Explanation:
An individual's esteem need according to Maslow is the need for respect, self esteem, status, and self confidence. Everyone wants to be valued and accepted by people, and this is esteem need. Esteem is an internal need but it is influenced by external environment when people validate and approve of a person.
North has just been promoted and along with this status change comes a corner office and a designated parking spot. This shows she is accepted and valued by the organisation.
James Hughes worked for Medtronic, Inc., a medical technology company, as a sales manager. His contract with Medtronic had a non-compete clause that prohibited him from working for a competitor for one year after leaving Medtronic. St. Jude Medical, S.C., Inc., was a competitor of Medtronic. In an effort to expand their business, St. Jude contacted Hughes about joining them. Hughes felt dissatisfied with conditions at Medtronic, and so began negotiations with St. Jude. Hughes shared his current contract with St. Jude's executives, who told him that his contract with Medtronic was unenforceable and offered him a job as a sales director at a significant higher salary. In fact, the contract was enforceable under state law. Hughes accepted the job offer from St. Jude. Medtronic filed a suit against St. Jude, alleging wrongful interference. Did wrongful interference occur and if so, which type of wrongful interference occurred?1. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract.
2. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract.
3. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract). Medtronic is suing for wrongful interference with a _______.
4. Who are the parties to the initial contract?5. _____is the third party who knew about the contract.
6. St. Jude learned about the contract and noncompete clause between Hughes and Medtronic from _____.
7. It is _____that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude ______before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause? That it ____enforceable.
10. Was the noncompete clause enforceable? 11. Did it matter if the clause was unenforceable? 12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
13. Is Hughes liable for intentional interference with a contract?
15. Hughes is _______to be held liable for breach of contract.
16. If St. Jude had informed Hughes that the noncompete clause was enforceable and Hughes still left to come to work for them, would St. Jude be liable for intentional interference with a contract?
Answer:
YES
Because by definition, wrongful interference occurs when one person intentionally damages someone else's contractual or business relationships with a third party causing economic harm
Explanation:
Did wrongful interference occur and if so, which type of wrongful interference occurred?
YES
Because by definition, wrongful interference occurs when one person intentionally damages someone else's contractual or business relationships with a third party causing economic harm
1. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract exists one party is targeting the others' customers/ A third party is inducing another to break a contract.
2. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract exists one party is targeting the others' customers/ A third party is inducing another to break a contract.
3. There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
Medtronic is suing for wrongful interference with a contractual business relationship.
4. Who are the parties to the initial contract? Medtronic and James Hughes
5. St. Jude Medical, S.C., Inc is the third party who knew about the contract.
6. St. Jude learned about the contract and noncompete clause between Hughes and Medtronic from James Hughes.
7. It is true that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude offered James Hughes a job as a sales director at a significant higher salary before he left Medtronic.
9. What did St. Jude represent regarding the non compete clause? That it was not enforceable.
10. Was the noncompete clause enforceable? YES
11. Did it matter if the clause was unenforceable? YES
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic? YES
13. Is Hughes liable for intentional interference with a contract? NO
15. Hughes is NOT to be held liable for breach of contract.
16. If St. Jude had informed Hughes that the noncompete clause was enforceable and Hughes still left to come to work for them, would St. Jude be liable for intentional interference with a contract? NO
The boss praised his hourly employees for their good work. The boss hopes that the praise encourages the employees to continue to work hard. In this example, the reinforcement is _____.
A) the boss’s praise
B) the employee’s good work
C) the boss
D) an hourly wage
Answer: option (A). the boss's praise
Explanation: Reinforcement is the process of encouraging or establishing a belief or pattern of behaviour. in this scenario, The boss praised his hourly employees for their good work. The boss hopes that the praise encourages the employees to continue to work hard. In this example, the reinforcement is the boss praise.The boss hoped the praise would encourage the employees to work harder.
Your favorite photo can now be printed on your favorite credit card. You can design your own dresses online and have them sent to you in a few days. You can even create your own orthotics to fit inside your shoes. These are examples of the trend toward:___________.1. continuous processes.2. intermittent processes.3. mass customization.4. lean manufacturing.
Answer:
3. Mass customization
Explanation:
Mass customization -
It refers to the strategy of marketing , where the goods and services are modified according to the taste of the consumer , is referred to as mass customization .
A huge number of people are targeted and the their likes and dislikes are considered in order to manufacture the goods and services .
It is also known as made - to - order and built - to - order .
Hence , from the given scenario of the question ,
The correct option is Mass customization .
Urban Outfitters is coordinating promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. This is best described as _______.
Answer:
Integrated Marketing communication
Explanation:
Integrated marketing communication is the process where all brand promotions are integrated together. It involves linking communications and messages of all forms concerning the marketing of a specific product together. It comes with advantages like brand differentiation, trust among consumers, accountability within the firm and so on. It combines various marketing channels and techniques. Here, urban outfitters is linking together promotion and other marketing efforts to ensure maximum informational and persuasive impact on consumers.
The promotion and marketing efforts coordinated by Urban Outfitters to ensure maximum impact on customers are best described as integrated marketing communications.
Explanation:The promotion and marketing efforts coordinated by Urban Outfitters to ensure maximum informational and persuasive impact on customers are best described as integrated marketing communications.
Integrated marketing communications is a strategic approach to marketing that focuses on creating a consistent message and brand experience across various communication channels.
For example, Urban Outfitters may use a combination of advertising, public relations, social media, and sales promotions to reach customers and influence their buying decisions.
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While most accounts suggest that Henrietta never met George Gey or knew about HeLa, Laure Aurelian says that Gey recounted meeting with Henrietta before her death. Do you find this story believable?
Answer:
no
Explanation:
Based on the information provided within the question it as well as information in the novel "The Immortal Life of Henrietta Lacks" it can be said that this story is difficult to find believable due to the fact that George Gey did not have a friendly relationships with patients he just used them for his immortal cell research.
Resource Forestry Corporation and the Service Employees International Union are sued by plaintiffs alleging job discrimination in violation of Title VII of the Civil Rights Act. This law applies to employers and labor unions with at least
a. fifteen employees or members.
b. five employees or members.
c. ten employees or members.
d. one employee or member.
Answer:
The correct answer is A
Explanation:
Civil Rights Act, 1964, under the Title VII, dealt with or states the federal law which forbid or prohibits the employers from discriminating the employees on the grounds of race, national origin, sex, color and religion.
This law applies to the employers with fifteen (15) or more number of employees, comprising of the local, federal and state government.
So, this law applies to the labor unions and the employers with at least 15 members or employees.
NTL is the largest cable company in the United Kingdom. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy-making process?
a. finding the optimal strategic solution
b. brainstorming
c. conducting focus groups
d. assessing the need for strategic change
e. conducting a situation analysis
Answer: Conducting a situation analysis.
Explanation:
A situation analysis is a method managers use to evaluate the position of things in their organization, where available resources are taken note of. NTL cable company has to conduct a situation analysis to know the resources the company possess and plan the way forward with what's available.
The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00. consider a three-month american call option on €62,500. for this option to be considered at-the-money, the strike price must be
The strike price must be $1.55 = €1.00
Explanation:
Dollar is the name of the currency used in America. Euro is the name of the currency used in European countries.
Strike price is a fixed price at which the product is purchased or sold.
Given:
The exchange rate of currency = $1.55 = €1.00
Three-month forward rate = $1.60 = €1.00
The strike price must be $1.55 = €1.00
Final answer:
For a three-month American call option on €62,500 to be at-the-money, the strike price must equal the current spot exchange rate, which is $1.55 per euro.
Explanation:
The question pertains to understanding at-the-money options in the context of currency exchange rates. When considering a three-month American call option on €62,500, the option is said to be at-the-money when the strike price exactly equals the spot exchange rate or the current market price of the currency.
Since the current spot exchange rate is given as $1.55 = €1.00, for the option to be at-the-money, the strike price must be $1.55 per euro. It means that at the time the option is purchased, the market price for buying euros is exactly the same as the strike price of the option, which is $1.55 for each euro.
Given the size of the contract is €62,500, the overall value in USD at the strike price would be 62,500 x $1.55.
Sunland Company collected $22400 in May of 2016 for 4 months of service which would take place from October of 2016 through February of 2017. The revenue reported from this transaction during 2016 would bea. $0
b. $4,200
c. $5,600
d. $1,400
Answer:
There is something wrong with this question because October to February is not four months, it's five months.
We can calculate this assuming 3 months of 2016 (October, November, December) and 2 months of 2016 (November and December).
3 months of 2016 = ($22,400 / 4 months) x 3 months = $16,8002 months of 2016 = ($22,400 / 4 months) x 2 months = $11,200No option is correct.
Your organization has set up three levels of classification for data accessed by users on a small network: Low security: Data in the C:\Public folder Medium security: Data in a shared folder that some, but not all, user groups can access High security: Data in a shared and encrypted folder that requires a password to access. The folder is shared only to one user group. Classify each of the following sets of data: a. Directions to the company's Fourth of July party b. Details of an invention made by the company president that has not yet been patented c. Résumés presented by several people applying for a job with the company d. Payroll spreadsheets e. Job openings at the company
Answer:
Low security: Data in the C:\Public folder
a. Directions to the company's Fourth of July party
e. Job openings at the company
Medium security: Data in a shared folder that some, but not all, user groups can access
c. Résumés presented by several people applying for a job with the company
High security: Data in a shared and encrypted folder that requires a password to access.
b. Details of an invention made by the company president that has not yet been patented
d. Payroll spreadsheets
Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) decreasesdecreases by 37 percent. The income elasticity of demand for this brand of car is_____. This particular brand of automobile is a(n) _____ good. In another example, suppose market research shows that a particular brand of truck is a normal good and a luxury. If so, then the income elasticity of demand for this truck is:______.
A. Less than 1 but greater than 0.
B. Negative.
C. Greater than 1.
D. Positive.
E. Zero.
Answer:
-1.48; Inferior good
Option (D) is correct.
Explanation:
Given that,
Income increases by 25 percent and quantity of a particular brand of automobile demanded decreases by 37 percent.
Therefore, the income elasticity of demand for this brand of car is as follows:
= Percentage change in quantity demanded ÷ Percentage change in Income
= (- 37) ÷ 25
= -1.48
Negative income elasticity of demand indicates that this particular brand of car is an inferior good.
There is a positive relationship between the income of the consumer and the quantity demanded for normal goods. This means that as the income of the consumer increases then as a result the quantity demanded for normal goods also increases and as the income of the consumer decreases then as a result the quantity demanded for normal goods also decreases.
The income elasticity of demand measures the change in quantity demanded in response to changes in income. This relates to two types of products: inferior goods, where demand decreases with increased income, and luxury goods, where demand increases more than proportionally with increased income.
Explanation:The income elasticity of demand measures how much the quantity demanded of a commodity responds to changes in consumers' income. In the scenario you presented, when income increased by 25%, the number of cars demanded decreased by 37%. So the income elasticity here is negative, specifically -37/25 = -1.48. This car brand is an
Inferior good
, as the demand decreases when income increases.
On the other hand, a truck that is a normal good and a luxury would have an Income elasticity of demand greater than 1 (option C). This is because the demand increases more than proportionally with an increase in income.
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An example of ________ would be when overweight people file suit against manufacturers, distributors, or sellers of food products, charging these parties with responsibility for their obesity
An example of frivolous lawsuits would be when overweight people file suit against manufacturers, distributors or sellers of food products, charging these parties with responsibility for their obesity.
Explanation:
This does not have serious purpose or viewThe mistake or the complaint cannot be provedThere is a little possibility of winning but most of the cases people fail to winThere is no legal merit given to thisThere are so many examples, where people complaint without any valid proof or with the things where they cannot bring proofThe complaints are not even factsSo, frivolous lawsuits are associated with complaints which cannot be proved.
Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?
a.
$93.84
b.
$99.75
c.
$209.03
d.
$312.06
Answer: $312.06
Explanation:
We are given that :
MSRP = $17500 , time = 36 months , interest rate = 9% , residual value = 57%
Exact residual value = 57% of 17,500 = $9975
Also, we know Money factor = rate ÷ 2400
money factor = 0.00375
Step 1 : To calculate monthly depreciation by using the formula :
Monthly Depreciation: MSRP-RESIDUAL VALUE / No. of MONTHS
17500-9975 / 36 = $209.03
Step 2 : To calculate monthly financial charge by using the formula :-
Monthly financial charge=( MSRP + RESIDUAL VALUE) . MONEY FACTOR.
Monthly financial charge = (17500+ 9975) . 0.00375= $103.031 25
Step 3 : To calculate lease amount by using the formula :
Lease payment = Depreciation + Financial charge
Lease payment = 209.03 + 103.031 25= 312.06
So, the approximate lease payment is $312.06
Answer:
D. $312.06
Explanation:
Which of the following best explains market segmentation? Select one: a. differentiating an organization or its products relative to the competition b. dividing a market into several smaller groups of buyers with similar characteristics c. selecting certain market segments for marketing emphasis d. attempting to reach most or nearly all consumers with the same marketing approach e. creating a marketing strategy with the same message to all segments
Answer:
b. dividing a market into several smaller groups of buyers with similar characteristics
Explanation:
The aim of market segmentation is to increase the revenue a seller earns.
For example, if a seller segments buyers based on their price elasticity, the seller can charge a higher price to the group with the less elastic demand and a lower price for those with a more elastic demand.
Also, if a seller segments buyers based on their willingness to pay, the seller can charge higher for the group with a higher willingness to pay and charge lower for the group with the lower willingness to pay. This is done with the aim of eliminating consumer surplus.
Segmentation is done to maximise profit of the seller.
Monopolies are usually able to practice segmentation more successfully.
I hope my answer helps you
Market segmentation is the process of dividing a market into smaller groups of buyers with similar characteristics. This allows a firm to target specific customer segments and tailor marketing efforts to meet their unique needs.
Explanation:Market segmentation is best explained by dividing a market into several smaller groups of buyers with similar characteristics. This strategy allows a firm to target specific customer segments and tailor their marketing efforts to meet the unique needs and preferences of each segment. By doing so, the firm can better differentiate itself and its products from competitors, attract customers who are willing to pay a higher price, and enhance overall profitability.
Bob, the owner of Orthopedic Supply, just discovered that his trusted friend Ruth, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Bob must decide whether to ignore his friend's actions and avoid bad publicity for Orthopedic Supply, or to have Ruth arested for embezzlement. Bob is facing:________ a) a whistle-blower. b) a moral courage decision c) an issue of corporate governance. d) a social audit e) an ethical dilemma.
Answer:
E) an ethical dilemma.
Explanation:
An ethical dilemma is a situation where a person must face a decision where both alternatives are really bad choices. No option will provide a positive resolution to the current situation, but the person must decide between one of them.
In this case, if Bob goes to the police, his friend will be arrested but that will generate bad publicity for his business. If Bob decides not to go to the police, Ruth will continue to steal money form him. It's like being between a rock and a hard place, whatever your decision, you are still going to be hurt.
Zenya is the founder of an online service that allows users to rent out spare rooms in their homes. She has hired a number of extremely bright employees whose opinions are central to the company's success in the fast-paced online services industry. Which type of strategic management process would be most likely to fully utilize the strengths embodied by her team and position the company to capitalize upon autonomous actions and serendipity?
strategic planning
ad-hoc planning
strategy as planned emergence
scenario planning
Answer:
Strategy as planned emergence
Explanation:
As per Mintzberg's strategic planning framework, strategies either emerge out of existing plans or are a consequence of a deliberate action.
Strategy as a planned emergence refers to those strategies which did not pre-exist or which were deliberately created , rather emerged as a consequence of a business problem or as a reaction to a business situation.
In the given case, Zenya has created an online service whereby users can rent out the spare rooms of their houses. She appointed qualified employees for opinion and recommendations.
In the given case, emergent strategy is suggested so as to fully utilize the strengths of her team and enable the company to make the most of the independent actions and opportunities.
Consider an individual who borrowed $$25,000 to purchase a used car at a fixed interest rate of 9%. If inflation is 9%, what is the real interest rate the individual will be paying
Answer:
The real interest rate is 0%
Explanation:
To calculate the real interest rate, we can use the following formula:
Real Interest Rate = [(1+nominal interest rate)/(1-+inflation rate)]-1
Now, we plug the amounts into the formula:
Real Interest Rate = [(1+0.09)/(1+0.09)]-1
=[1.09/1.09]-1
=1-1
=0
Thus, the Real Interst Rate is equal to 0%
Car manufacturers of expensive models, such as Mercedes or Audi, insist on wrap covering each individual vehicle with protective sheathing for the duration of the journey from the factory to the dealership. Such manufactures are creating which kind of channel utility?
Answer: Form utility.
Explanation:
The manufacturers of the expensive car brands are trying to ensure that the cars have a high form utility when the consumers want to purchase them from dealers. The form utility is the utility a consumer derives from a product when it has been converted from raw materials to finished product.
Car manufacturers like Mercedes and Audi create place utility by wrapping their vehicles in protective material during transport. This ensures the cars arrive in pristine condition, enhancing customer satisfaction. The cost for this can be passed on to consumers, as demand for luxury cars is typically inelastic.
Explanation:Car manufacturers like Mercedes or Audi wrapping each vehicle with protective sheathing for transportation from the factory to the dealership is creating a form of channel utility known as place utility. Place utility is created when a product is made available to a consumer at a desired location. By carefully protecting their vehicles during transit, these manufacturers ensure that their high-end automobiles arrive at the dealership in perfect condition, promoting customer satisfaction.
This also ties into the concept of elastic and inelastic demand. For expensive, luxury cars, the demand is typically inelastic, meaning that consumers are less sensitive to price changes. In such a case, the cost for additional protection during transport can be passed on to the consumer without significantly affecting sales.
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Customers in the segment must react similarly and positively to the firm's offering. This quality is known as ______, which is an important element of successful segmentation.
Answer:
Responsiveness
Explanation:
Market segmentationnis the process by which a company groups consumers on the basis of a shared characteristic which can be income status, education, age, location, race,and so on.
For segmentation to be successful the segment must be measureable, profitable, accessible, and market responsive.
Responsiveness is the level of adoption of the product by the target segment. If the segment is not responsive then that aim of the business is defeated. Consumer decision to purchase is key to product success.
The New Product Development Process begins with the _____________, fill in the blank, stage and culminates with the _____________, fill in the blank, phase.
The new product development begins with the idea generation.
Explanation:
The five basic stages of new product development (NPD) are as follows,
Idea generation: This is the first and foremost process of NPD. It is systematic search for new ideas from internal and external sources.Idea screening: Filtering the best ideas from all the selected ones. Concept development: Developing the reliable concepts with the help of SWOT analysis.Marketing strategy development: Description of the target market, outline of the product’s planned price and planned long-term salesBusiness analysis: Review of the sales, R&D, operations and efficiency ratio measure.Product development: Developing a successful prototypeTest marketing: The proposed marketing program and the developed product is released in the realistic market.Commercialisation: Introducing the developed product finally and permanently into market.When assessing a foreign market, Unisys Corporation undertakes a general, noneconomic review of conditions affecting the business, including safety and leisure time. This demonstrates a focus on the_________.
Answer:
Cultural, sociological, and political climate
Explanation:
When accessing the foreign markets the Unisys must keep in mind the various economic and the economic factors that affect the conditioning of the business and includes. The safety and the leisure time of the business and are shown in terms of the cultural and the sociological and the political environment.John and Susan Smith are in their mid 30s and have two children, a 4-year-old and a 2-year-old. Both John and Susan work and do not currently need additional income. They have determined they want to conservatively invest so that they will have funds for their childrens' college in about 12-15 years. Which of the following investments would best meet their goal? A) Common Stocks.B) Laddered Treasury Notes.C) Laddered Zero-Coupon Bonds.D) Preferred Stocks.
Laddered Zero-Coupon Bonds would best meet their goal.
Explanation:Those bonds that will not pay interest in the life of bonds refers to Zero Coupon Bonds. The investors will be getting this type of bonds with greater discount from their original value. These will be achieved by them during the time of the maturity of that bond.
In the given example, John and Susan Smith do not wish to have additional income in their current state and want to gain some investment in future for the purpose of making their children college studies. The period of waiting is about 12-15 years and hence they can make investments in Laddered Zero-Coupon Bonds.
Laddered Treasury Notes are the best conservative investment option for the Smiths' children's college fund due to their moderate to long-term investment horizon. They offer lower risk and fixed interest rates, aligning with the Smiths' conservative approach and the benefits of compound interest.
Explanation:Considering the Smiths have a moderate to long-term investment horizon and are seeking conservative investments for their children's college fund, the best option among those listed would likely be B) Laddered Treasury Notes. These are government-issued debt securities with fixed interest rates and provide a reliable, lower-risk return. While common stocks and preferred stocks may offer higher potential returns, they also come with higher volatility, which might not align with the Smiths' conservative investment strategy.
Laddered Zero-Coupon Bonds could also be a suitable approach since they can be purchased at a discount and grow to their face value over time, exclusively delivering the return at maturity, which could coincide with the children's college enrollment dates. However, this option might not provide the same level of liquidity or periodic interest payments as Treasury Notes.
Starting to save money early and leveraging the power of compound interest is essential, as it allows investments to grow significantly over time. This strategy aligns with investing in bonds, which can provide regular interest payments that compound over the years.