According to the text, you are not ready to decide whether a business idea is viable until you have talked to at least 50 potential customers.
This statement is True.
Potential customers of a company are commonly referred to as prospects. People who may be interested in a company's services or products but have not yet purchased them.
A potential customer is therefore a potential purchaser of an organization's products or services. By understanding which prospects are most likely to buy from your business, you can target your communications accordingly and identify their marital status.
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7. problems and applications q3 the problem of time inconsistency applies to fiscal policy as well as to monetary policy. suppose the government announced a reduction in taxes on income from capital investments, such as new factories. if investors believed that capital taxes would remain low, the government's action would cause the level of investment to . after investors have responded to the announced tax reduction, the government can get more tax revenue by taxes on income from capital investments. true or false: given your answer to the preceding part, investors would not believe the government's announcement. true false
Investors would not believe the government's announcement. Hence, the correct response to this statement would be true.
Give a brief account on Fiscal policy.Fiscal policy is the use of government income collection (taxes or tax cuts) and expenditure to affect a nation's economy in economics and political science. After the Great Depression of the 1930s, when the prior laissez-faire approach to economic management proved ineffective, the use of government revenue expenditures to affect macroeconomic variables emerged as a response. The principles of British economist John Maynard Keynes, whose Keynesian economics postulated that changes in the amount of government spending and taxation have an impact on aggregate demand and the level of economic activity, serve as the foundation for fiscal policy. The main tactics a government and central bank utilize to further their nation's economic goals are fiscal and monetary policy.
If investors believed that capital taxes would remain low, the government's action would lead to an increased level of investment.
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if carissa dalton has a $400,000 home insured for $312,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a claim of $17,000? assume there is no deductible. (do not round intermediate calculations. round your answer to 2 decimal places.)
The insurance company would pay $16,575 on a claim of $17,000 based on the coinsurance formula.
0.80 × 400,000 = 320,000
(312,000 /320,000) × 17,000
= $16,575
Coinsurance Formula
Amount paid = (Insurance coverage / Coinsurance requirement) × Claim amount
(coinsurance req. = value of home * %)
The coinsurance formula is the homeowner's insurance formula that determines how much a homeowner will be reimbursed for a claim. When a homeowner fails to maintain coverage of at least 80% of the home's replacement value, the coinsurance formula kicks in. Those who file a claim in this situation will only receive a partial reimbursement based on the formula. The coinsurance formula determines how much a homeowner or property owner will be reimbursed for a claim.
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the balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the perspective.
The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as Innovation and Learning.
What Organization means?
An organization is a group of people who work together to achieve specific goals. It can be thought of as a social system that includes all formal human relationships. The organization includes employee work division and task alignment toward the company's ultimate goal.
It is also known as the second most important managerial function because it coordinates employee work, acquires resources, and combines the two in order to achieve the company's goals.
Organization is a process that aims to achieve goals through proper planning and coordination of activities. It is based on the principle of work division and establishes an authority-responsibility relationship among the members of the organization.
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biarritz corp. is growing quickly. dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 7.8 percent thereafter. the required return is 15 percent and the company just paid a dividend of $3.65. what are the dividends each year for the next four years? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) what is the share price in three years? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The dividend discount model (DDM) is a quantitative technique for forecasting the price of a company's stock based on the idea that, when discounted back to their present value, all of the company's future dividend payments are worth the present price of the stock.
How to calculated the DDM ?We will apply the dividend discount model method to determine the current share price.Based on the present value of anticipated future dividends from the stock, the dividend discount model (DDM) calculates an estimate of the share's or stock's worth. As the growth in dividends of the stock is divided into two stages, we will use the DDM two stage growth model in this instance.Under the two stage growth model, the current price is calculated as follows:.P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [( D0 * (1+g1)^n * (1+g2)) / (r - g2)] / (1+r)^n
Where,
starting growth rate is g1.
The constant growth rate is g2.
The necessary rate of return is r.
Consequently, the stock's current price will be,
P0 = 3.15 * (1+0.29) / (1+0.15) + 3.15 * (1+0.29)^2 / (1+0.15)^2 + 3.15 * (1+0.29)^3 / (1+0.15)^3 + [( 3.15 * (1+0.29)^3 * (1+0.068)) / (0.15 - 0.068)] / (1+0.15)^3
P0 = $69.85196, which was rounded to $69.85.
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ery small tools are less productive because they remove material slower due to their reduced size and strength. how should engineers design cost effective part features with regard to the tool size(s) required to produce them?
Engineers should use a step in the design of any physical object selecting the material which makes them design cost-effective part features with regard to the tool size required to produce them.
Any physical object's design process includes selecting a material. Minimizing costs while attaining performance goals for the product is the main purpose of material selection in the context of product design. A rigorous process of selecting the best material for a certain application begins with evaluating the characteristics and prices of prospective materials.
When choosing materials, it can often be helpful to use a material index or performance index related to the desired material qualities. As an illustration, a thermal blanket's thermal conductivity must be low to minimize heat transfer for a particular temperature difference. As a result, choosing the material for any physical thing should be a stage in the design process for engineers.
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gabriel operates a tree-trimming business in maine. he charges the perfectly competitive price of $47 per hour. the marginal cost of working the 36th hour each week is $42; the marginal cost of working the 37th hour is $44; the 38th hour is $46; and the 39th hour is $48. how many hours should he work each week?
In order to optimize his net gain, Gabriel should spend 38 hours each week in the tree-trimming industry in Maine.
What is meant by the term marginal cost?The term "marginal cost" describes the rise in manufacturing costs brought on by the creation of more product units.
A different name for it is the marginal production cost. Businesses may evaluate how volume produced affects cost and eventually profits by calculating the marginal cost.The difference in total production costs caused by creating or producing one extra unit is known as the marginal cost in economics.The charger for tree-trimming by Gabrial are-
perfectly competitive price - $47 per hour.marginal cost of working the 36th hour each week = $42.marginal cost of working the 37th hour = $4438th hour = $4639th hour = $48Thus, in order to optimize his net gain, Gabriel should spend 38 hours each week in the tree-trimming industry in Maine.
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elias is creating an agenda for his team's upcoming sales meeting. what should he include in the agenda?
Elias is creating an agenda for his team's upcoming sales meeting, expected outcomes include in the agenda
The process of leading to the sale of goods or services is referred to as sales. Businesses have segmented sales organizations made up of various teams. Additionally, these sales teams are frequently chosen based on the market they are targeting, the good or service they are selling, and the target client. A meeting's agenda is a list of the topics that will be discussed, starting with the call to order and ending with the adjournment. It typically contains one or more specific items of business that need to be handled. Specific times for one or more activities may be included, but they are not required to be. Agendas typically include: Informational items: updating the group on relevant information.
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In a marketing plan, the ________ state what the marketing function must accomplish to achieve overall business objectives.
'In a marketing plan, the Opportunities and threats state what the marketing function must accomplish to achieve overall business objectives.
A marketing plan can be part of your overall business plan. A solid marketing strategy is the foundation of a well-crafted marketing plan that helps you reach your goals. Marketing plans contain a list of actions, but they are of little use to businesses without a solid strategic foundation.
A marketing plan is a promotional strategy that a company implements to sell its products and services. A marketing plan helps determine who your target markets are, how best to reach them, the price at which your product or service will be sold, and how your company will measure its efforts.
A marketing plan outlines marketing/promotional activities for a specific period of time (usually the next 12 months). It explains how to reach, engage, and persuade customers to buy your product or service with clear goals, actions, and responsibilities.
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depreciation of a country's currency will be more effective in reducing its trade deficit if its: a) imports do not have good substitutes. b) exports are primarily luxury goods. c) exports represent a small portion of foreign consumer expenditures.
Depreciation of a country's foreign money might be extra powerful in lowering its exchange deficit if its: luxurious items.
The required details for luxury good in given paragraph
Under the elasticities approach, a foreign money depreciation will cause a more discount in a exchange deficit while export call for and/or import call for are extra elastic. The call for for luxurious items is especially elastic, even as the call for for items with out excellent substitutes or for items that constitute handiest a small part of purchaser costs is especially inelastic. a luxurious excellent (or upmarket excellent) is a excellent for which call for will increase extra than what's proportional as income rises, in order that costs on the best end up a more share of universal spending.
Luxury items are in evaluation to necessity items, wherein call for will increase proportionally much less than income. Luxury items is regularly used synonymously with advanced items.
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which of the following are the two main components of current core compensation? group of answer choices base pay and discretionary benefits base pay and bonuses base pay and legally required benefits bonuses and legally required benefits flag question: question 5
Base pay and variable pay are the two main components of an employee's compensation package
The clear rate of compensation an employee receives in exchange for the services they provide to the employer is known as base pay.
The largest component of a CEO's compensation package is long-term incentives. When CEOs achieve an organization's strategic goals that will maximize shareholder value, these bonus opportunities reward them. Stock, stock options, restricted stock, or other forms of similar compensation are used to pay CEOs.
The IRS defines a key employee as someone who satisfies one of the following criteria: owns more than 5% of the company. has a salary of more than $150,000 per year for the plan year as of 2020 and owns more than one percent of the business.an officer who will earn more than $185,000 in 2020 and 2021.
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the costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are referred to as
The costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are externalities.
Environmental externalities are the uncompensated effects on the environment due to the production and consumption of a product. Environmental externalities can be positive or negative.
A positive externality can benefit the environment such as the elimination of a disease or preventing waste to flow into the river, saving the ecosystem.
A negative externality can have negative effects on the environment. For instance, pollution is damaging the health of the people or depletion of the forest area to create space for factories. It will affect the third party that is not involved in the production and consumption chain.
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sosa company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. demand is estimated to be 138,000 units annually. what is the price if a markup of 35% on total cost is used to determine the price? round to two decimal places.
Managerial accounting is used to give relevant information to people within a company, mostly management, to aid them in making more informed business decisions. Financial accounting is used to generate financial statements that benefit external users.
Annual fixed cost is $1,900,000.
Producing 138,000 units annually
Fixed cost per unit is $13.77 divided by 1,900,000 units.
$39 is the variable cost per unit.
Fixed cost per unit plus variable cost per unit equals total cost per unit ($13.77 + $39 = $52.77 per unit).
Markup equals Total Cost * 35% (52.77 * 35% = $18.47),
Sale price equals total costs plus a markup of 52.77 plus 18.47, or $71.24.
Any expenses that vary according to how much a business produces and sells are considered variable costs. Contrarily, fixed costs are those outlays that don't change regardless of how much a business produces.
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wilkinson sword exchanged some of its knives for advertising used to promote its razor blades. this is an example of
Wilkinson sword exchanged some of its knives for advertising used to promote its razor blades. this is an example of barter.
Advertising is a marketing plan involving repaying for the scope to promote merchandise, aid, or cause. The real promotional ideas are named advertisements or ads for short. The aim of the exhibition search outreach to people who seemingly expected willingly to finance an association's output or services and persuade the ruling class to buy.
Advertising helps educate users about by means of what your products or services help bureaucracy and what your brand endures. The barter company delivers the herald's goods and duties by way of channels agreed upon earlier accompanying the customer. Media owners meantime exchange their stock for goods and aids that they need for their ordinary trade operations.
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reciprocity and redistribution are both forms of exchange of goods. reciprocity is more likely to be found in
Reciprocity typically happens between persons who are acquainted at a social level that is higher than the family.
Reciprocity is the oldest form of exchange and is utilized in egalitarian cultures. Generalized, balanced, and negative reciprocity are the three types of reciprocity.
Redistribution is the reassignment of money, power, and resources, whereas reciprocity is the process of exchanging services and goods to achieve some sort of equilibrium and mutual cooperation.
Reciprocity is the term used in cognitive science to describe non-market exchanges of products or labor, from direct barter (immediate exchange) to gift exchanges where a return is later anticipated (delayed exchange), such as birthday gift exchanges.
A salesperson offering a free gift to a potential customer in the hopes that they will return the favor by making a purchase is an example of reciprocity.
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working papers of continuing audit interest usually are filed with the administrative working papers.
A. true
B. false
Working papers of continuing audit interest usually are filed with the administrative working papers.
A. true
Audit documentation includes records of the preparation and execution of the job, the methods carried out, the evidence gathered, and the findings drawn by the auditor, among other things. The term "audit documentation" can also apply to work papers or working documents.
Working papers are records that the auditor keeps of the methods used, the tests carried out, the data collected, and the pertinent judgments made during the engagement.
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one key concern of franchising is the protection of the total business system that a franchise offers. true or false
It is TRUE that, One key concern of franchising is the protection of the total business system that a franchise offers.
The word "franchising" means "to be free from servitude" and is derived from the French language. It was created as a business strategy in the 1850s in the United States. Some historians contend, however, that franchising emerged as a method of licensing much earlier, during the feudal era when the leader of the Roman Catholic Church granted his clergy the authority to levy church taxes locally.
A low-cost strategy for gaining market share quickly is franchising. An indirect way for a franchisor to deliver a consistent product and customer experience is through a franchisee.
This is accomplished by transferring operational processes to the franchisee organization and managing them for performance.
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When posting from the sales journal to the accounts receivable subsidiary ledger, write the letter "S" plus the page number on which the transaction was recorded in the Posting Reference column of the subsidiary ledger account.
A. true
B. false
When posting from the sales journal to the accounts receivable subsidiary ledger, write the letter "S" plus the page number on which the transaction was recorded in the Posting Reference column of the subsidiary ledger account.
B. false
An accounting ledger that displays each customer's transaction and payment history to whom the company lends credit is known as an accounts receivable subsidiary ledger.
To maintain accuracy, the balance in each client account is frequently compared to the general ledger's accounts receivable balance.
It can be divided into three types: fixed asset sub-ledger, accounts receivable sub-ledger, and accounts payable sub-ledger. Subledger reduces the likelihood of fraud and errors.
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when cheetos developed a new "cheesy" flavor, cheddar jalapeno crunchy cheetos, it was an example of a _______.
When cheetos developed a new "cheesy" flavor, cheddar jalapeno crunchy cheetos, it was an example of a line extension.
What is Line extension?
A line extension is the creation of a product that is closely connected to one or more existing goods in the product line but is particularly created to address somewhat different client demands. The target market for Cheddar Jalapeno Crunchy Cheetos is presumably the same as for Original Cheetos, with the exception that this group prefers their Cheetos spicy. When a parent brand introduces a new product line in a market where its customers are already familiar with it, this is known as a line extension. Brands can expand their product lines without developing new categories. The addition of new flavours to a soft drink company's current drink selection is a prime illustration of a line expansion.To know more about Line extension visit:
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Rather than carrying 15 brands of laundry detergent, ________ offer one or two brands and sizes, one of which is a store brand.
Rather than carrying 15 brands of laundry detergent, limited-assortment supermarkets offer one or two brands and sizes, one of which is a store brand.
According to USA Today, smaller grocery stores with fewer options are opening up all over the nation as consumers look for discounts. These small stores, which provide fewer products but more discounts, are opening in place of conventional supermarkets.
Aldi, Grocery Outlet, and Save-A-Lot, for instance, Jim Hertel, managing partner at Willard Bishop, claims that they are "quite aggressively expanding."
People began purchasing food in more diverse areas as prices continued to rise, according to Phil Lempert, the analyst who runs SupermarketGuru.com. "Without a doubt, all three will experience significant growth in the next years." With plans to open 80 to 100 more stores in 2011, Aldi will have more than 1,135. Save-A-Lot currently has more than 1,200 outlets, and by 2016 will double that number.
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The supply-side effects show that a tax cut on labor income ________ the supply of labor and ________ employment.
The supply-side effects show that a tax cut on labor income increases the supply of labor and decreases employment.
According to the supply-side effects, a tax cut on labor income results in an increase in the labor supply and a fall in employment.
According to the supply-side hypothesis, economic growth is inevitably fueled by expanding the supply of goods. According to the supply side ideology, rather than attempting to manage the economy by regulating prices and wages, the government should concentrate on boosting economic output by lowering taxes and decreasing regulations.
In the end, it thinks that the greatest way to ensure everyone's prosperity is through market mechanisms.
According to supply-side economics, a nation's economy will grow if its supply of goods is increased.
Practitioners of supply-side fiscal policy frequently concentrate on reducing taxes, bringing down borrowing costs, and dereglementing industries to encourage increasing production.
In the 1970s, supply-side fiscal policy was developed as an alternative to demand-side Keynesian policy.
Supply-side policies, according to their detractors, are flawed and may increase economic inequality.
On theoretical and empirical grounds, this theory's viability is still being disputed, with proponents on both sides of the argument.
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when an owner of real estate sells property to someone else, he is exercising which of these legal rights?when an owner of real estate sells property to someone else, he is exercising which of these legal rights?
when an owner of real estate sells property to someone else, he is exercising Disposition legal rights.
Real estate is any of this type of immovable property, which includes land, structures, and any on-site natural resources like water, crops, minerals, or minerals. Any interest in the aforementioned property, structures, or housing in general is also included. Real and estate are terms used in the law to describe a person's "interest" in a piece of land-related property. Personal property is different from land property.
Personal property, which is not permanently fixed to the land and includes items like cars, boats, jewelry, furniture, tools, and farm equipment, is different from real estate.
In the US, fiduciaries, individuals, for-profit corporations, and business corporations can all transfer, own, or acquire real estate.
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transformational leadership often incorporates which types of leadership?a.behavioral and situationalb.authentic and servantc.visionary and charismaticd.transactional and motivational
Transformational leadership often incorporates (C) visionary and charismatic.
What is transformational leadership?A leadership style known as transformational leadership affects both social systems and individual behavior. In its optimal state, it brings about significant and constructive change in the followers with the ultimate objective of transforming followers into leaders.According to the leading idea of transformational leadership, a leader engages teams or followers in ways that go beyond their immediate self-interests in order to recognize changes that are necessary and to develop a vision for those changes.It is simple for the followers to trust and believe in a transformational leader. This is also known as charisma because displaying a charismatic personality has been shown to persuade followers to emulate their leader.Therefore, transformational leadership often incorporates (C) visionary and charismatic.
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Correct question:
transformational leadership often incorporates which types of leadership?
a. behavioral and situational
b. authentic and servants.
c. visionary and charismatic.
d. transactional and motivational
marginal utility becomes negative with the consumption of the question 7 options: a) fifth candy bar.
Marginal utility becomes negative by the consumption of the seventh candybar.
Marginal utility is an economic term that measures the customer's benefit in purchasing the services of an organization. The law of diminishing marginal utility describes how the benefits or utilities of products have an opposite effect on the number of contemporaneous units they already own.
The marginal utility of a product can be based on a customer's perception of a brand that influences their decision to remain loyal to it or to view similar products made by different companies because of their level of satisfaction. Next, marketers need to work on developing strategies that keep demand high for products and services even as their marginal utility decreases.
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if you were making a marketing mix decision on place, which would be the three most important external factors you need to consider?
You need to consider the three most important external factors: culture, competition, and legality. A promotion mix may be a combination of promoting ways with advertising, sales, promotion and promoting to attain a particular marketing goal.
The promotional mix is often solely a part of a bigger promoting combine. Improves the effectiveness of promotional campaigns. Promotion may be a crucial part of any business. Therefore corporations develop a promotion combine, golf stroke all efforts to form promotions at the proper place, at the proper time, and to the proper audience.
The promotion mix is the mix of various strategies and tools of communication you employ in presenting your company, product or services to focus on customers.
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steel mill inc. makes an offer to teri to enter into a contract to work as an metallurgical engineer for a certain salary for one year subject to a five-year renewal based on his performance. teri accepts the offer. this is a valid contract because it includes
The fact that there is both an offer and an acceptance makes this a legal contract.
A legal contract is what?
Legal contracts are legally binding agreements that specify the rights and obligations of two or more parties. These written contracts contain pledges between the parties that are upheld in a court of law. Legal agreements are beneficial because they safeguard all parties in the event of a legal dispute.
They also lay out expectations so that everyone who signs the contract is aware of their obligations and rights. When it comes to law enforcement, legal contracts are quite important. A legally enforceable contract provides the judicial system and law enforcement with a reference document to aid in decision-making.
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uppose that in 2018 and 2019, households and firms reduced desired expenditures. during the same period inflation fell and unemployment rose. a. the change in unemployment, but not the change in inflation, is consistent with what a given short-run phillips curve implies. b. neither the change in inflation nor the change in unemployment are consistent with what a given short-run phillips curve implies. c. the change in inflation, but not the change in unemployment, is consistent with what a given short-run phillips curve implies. d. both the change in inflation and the change in unemployment are consistent with what a given short-run phillips curve implies.
Suppose that in 2018 and 2019, households and firms reduced desired expenditures. during the same period inflation fell and unemployment rose then option D) both the change in inflation and the change in unemployment are consistent with what a given short-run phillips curve implies.
A rise in the cost of goods and services throughout an economy is referred to as inflation in the study of economics. As the general price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction in the purchasing power of money. Inflation is the term used to describe when prices in an economy rise or when the purchasing power of money falls. According to economists, a variety of factors, such as an increase in the money supply, higher wages, and increased aggregate demand, may contribute to inflation. Low and high inflation rates are both capable of contributing to economic deterioration. In certain situations, the Fed will take the opposing course and lower interest rates or buy assets to increase cash flow. When the economy is having trouble and inflation is too low, this is done.
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For years, which of the following is the only major media category that has seen an increase in spending?
A. Online advertising
B. Radio jingles
C. Television ads
D. Print media
E. Telemarketing
For years, the following is the only major media category that has seen an increase in spending is A. Online advertising.
Advertising and marketing is an effective device that allows you to entice clients, tell them approximately your merchandise, and build purchaser agreements. Most businesses use a few types of advertisements to help them sell their services or products.
Powerful, visible marketing displays compel customers to purchase goods, services, and ideas as a way to obtain emotional success. Persuasion is the central assignment of advertising. Advertising tells you the way the product, carrier, or concept you are considering will enhance your lifestyle.
Marketing helps companies aware of their competitors in the marketplace and the way they could higher their product; advertising is the muse for any organization to launch or launch a new product; advertising allows create purchaser loyalty; The demand for a product is the end result of advertising.
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unlike the debt coverage ratio, the debt yield ratio (dyr) is not affected by the interest rate or amortization period of the loan; the dyr is simply a measure of how large the noi is relative to the loan amount. lenders who rely on this ratio are typically willing to accept a minimum dyr of:
Debt yield ratios (DYRs) of at least 10% are normally acceptable to lenders who rely on this ratio.
What is DYR, or debt yield ratio?One such less well-known statistic used to estimate the risk associated with commercial real estate lending is debt yield ratios. To assess and contrast loans and mortgages, debt yield is used along with the Loan-to-Value Ratio (LTV) and the Debt Service Coverage Ratio (DSCR). Divided by the loan amount, the debt-to-yield ratio represents the property's net operating income.
By focusing on net property income or annual revenue, this measure of risk isolates it from factors like property value, amortization, or interest rates. It is simple to determine the debt-yield ratio, often known as the debt-to-yield ratio. Debt yield is calculated as the loan amount divided by operating income.
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the demand curve suggests that an auto manufacturer will sell 20,000 mercedes-benz m-class vehicles when they are priced at $50,800, but when the price is reduced to $45,000, that quantity will increase to 27,000 units. what is the resulting elasticity?
The resulting elasticity -3.07 ; % change in quantity demanded = (27,000 - 20,000) / 20,000 = 0.35% change in price = ($45,000 - $50,800) / $50,800 = -0.114Price Elasticity of Demand = 0.35 / (-0.114) = -3.07
Demand is the amount of goods that people are willing to buy at a particular price at a particular time. Description: Different quantities can be requested at different prices at any given time.
Demand refers to the desire and willingness of a consumer to purchase a product or service over a specified time or period. Consumers must also be able to pay for what they want and need according to their disposable income budget. Demand is therefore the force that influences economic growth and market expansion.
Demand refers to the amount that consumers want and can buy at a given price. Demand is the entire relationship between the price of a commodity and the quantity of demand for the commodity.
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at december 31, suppose that the following information (in thousands) was available for banana republic inc.: ending inventory $22,700; beginning inventory $21,600; cost of goods sold $221,500, and sales revenue $450,000. calculate the inventory turnover and days in inventory for banana republic. (round answersto 1 decimal places, e.g. 15.2. use 365 daysfor calculation.) inventory turnover times days in inventory days
The direct costs of production, such as direct labor and materials, are not included in the cost of goods sold, which is also known as cost of sales.
The cost of goods or services that are not sold should not be included in the calculation of the cost of goods sold.Cost of goods sold equals gross profit minus sales, or Cost of goods sold minus purchases minus ending inventory.
Purchase Price: $8,920 million minus Cost of Goods Sold: $8,795 million
Your company's total cost of goods sold is the sum of all costs directly related to product sales.That could include items purchased for resale, raw materials, packaging, and direct labor related to producing or selling the good, depending on your business.
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