If a bank receives a new transaction deposit of $10,000 and the reserve ratio is 5 percent, it means that the bank is required to hold a portion of that deposit as reserves, which is 5 percent or $500 in this case. The remaining $9,500 can be used to expand its loans.
This is because banks operate on a fractional reserve system, where they are allowed to lend out a portion of the deposits they receive, while keeping a fraction of it as reserves. The amount that the bank can expand its loans by is limited by the reserve ratio, which is set by the central bank. Therefore, the correct answer is (d) $9,500. It is important to note that this is a simplified explanation, as the actual process involves more complex calculations and regulations.
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The bank could expand its loans by as much as: b. $10,000.
The reserve ratio is the percentage of deposits that banks are required to hold in reserves, meaning they cannot be used for loans. In this case, the bank's reserve requirement for the new deposit of $10,000 would be 5% of that amount, or $500. This means that the bank could potentially use the remaining $9,500 to make new loans, therefore expanding its lending by that amount.
If a bank receives a new transaction deposit of $10,000 and the reserve ratio is 5 percent, then the bank could expand its loans by as much as:
The reserve ratio is the percentage of deposits that a bank is required to hold in reserve and cannot lend out. In this case, the reserve ratio is 5%, so the bank must hold 5% of the $10,000 deposit as reserves, which is $500. The remaining $9,500 can be used to make loans, which means the bank can expand its loans by as much as $9,500.
Therefore, the correct answer is (b) $10,000, as the bank can lend out $9,500 and keep $500 as reserves to satisfy the reserve requirement.
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Which statement best explains why the United States grew into a world
economic power in the 20th century?
O A. The United States prevented other countries from abandoning the
gold standard.
O B. The United States increased its participation in international trade.
C. The United States put effective trade barriers in place to limit trade
with other nations.
D. The United States stayed out of major world wars and instead
made economic investments.
Answer:
B. The United States increased its participation in international trade.
Explanation:
The correct option is - B. The United States increased its participation in international trade.
Shaili bought a bond from Penny’s Pickles, Inc at par value ($1000) with a coupon rate of 6% and a maturity date 10 years in the future...
If interest rates are currently 3.5%, and Shaili sold the bond today, would she expect to get more than, less than, or equal to $1000 for it?
Answer:
I believe its less than.
Explanation:
Sorry if I am wrong
stakeholder orientation can be viewed as a continuum. why?
Stakeholder orientation represents a range of approaches that companies can take in relation to their stakeholders. Thus, shareholder orientation can be viewed as a continuum
At one end of the continuum, companies have a shareholder orientation, where their primary focus is on maximizing profits for their shareholders. On the other end, companies have a stakeholder orientation, where they consider the interests of all their stakeholders, including customers, employees, suppliers, communities, and the environment.
In between these two extremes, there are various degrees of stakeholder orientation that companies can adopt. For example, some companies may have a customer-centric approach, where they prioritize the needs of their customers, but don't give as much consideration to their other stakeholders. Others may have a sustainability orientation, where they focus on minimizing their environmental impact and promoting social responsibility.
The reason why stakeholder orientation can be viewed as a continuum is that companies can move along this spectrum depending on their priorities, values, and goals. They may start off with a shareholder orientation but then shift towards a stakeholder orientation as they realize the importance of building strong relationships with their stakeholders. Alternatively, they may begin with a stakeholder orientation, but then become more focused on short-term profits as they face financial pressures.
Ultimately, stakeholder orientation is a dynamic concept that reflects the evolving relationship between companies and their stakeholders. By recognizing the interests of all their stakeholders, companies can build trust, enhance their reputation, and create long-term value for their shareholders.
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april has joined a team with members from the sales customers service and shipping and receiving departments which term best describes the team april joined
Answer:
A cross-functional team
Explanation:
A cross-functional team is composed of members with different skills, experiences, and backgrounds. In organizations, cross-functional teams will have members from various departments. The teams are formed to undertake projects that require input from different experts.
April has joined a cross-functional team. The team has members from many departments. Cross-functional are temporally and get dissolved when the project is complete.
In a platform marketplace, the authors suggest that lowering prices on one side of the network increases demand ________a. on both sides of the network b. on neither side of the network c. None of these d. on that side of the network e. on the other side of the network
In a platform marketplace, the authors suggest that lowering prices on one side of the network increases the demand on both sides of the network.
The correct option is On both sides of the network as the platform marketplace is e-commerce where the decrease in prices will increase the demand on both sides.
A network-based platform is a piece of hardware or software that links users with other community members to foster opportunities that are profitable to both parties. An e-commerce platform is a piece of software that houses your online store, whereas a marketplace is a location where numerous buyers and sellers can gather and conduct business.
Customers become dependent on two-sided networks, which has accelerated the sharing economy's unstoppable development. The value that a consumer derives from joining a platform in two-sided markets with network effects is determined by the number of consumers on the other side.
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Which of the following is an example of telecommuting?
A. Setting up a conference call between two different companies
B. Working from home instead of at the company's main office
C. Scheduling a meeting in the middle of the day
D. Using a computer and slideshow during a meeting
B. Working from home instead of at the company's main office
Have a great day!
An example of is Working from home instead
Telecommuting is also known as Remote work
Telecommuting refers to the ability granted to an employee to work from remote place apart from the office.
The reason why Organization allows telecommuting are:
Its helps to improve employee efficiencyIts offers schedule flexibilityIts improved employee retention and attraction.In conclusion, the mode of getting work done have been increasing in recent time because its saves cost for both the employee and employer.
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the opportunity cost of going to a movie is: the money spent on the ticket only. all of the other movies that could have been seen instead. the time spent in the theater only. the next best use of the time and the money spent.
the opportunity cost of going to a movie is: the total cash expenditure needed to go to the movie plus the value of your time.
What you forgo in order to get a thing is its opportunity cost. In this situation, the opportunity cost of attending a movie comprises both the overall cost of admission and the value of the time you forwent to see the film.
What is an example of opportunity cost?Opportunity costs give decisions that appear simple context. Think about the price of graduate school. By adding up the price of tuition, board, books, and other educational expenses over the necessary number of years at your top-choice university, you might theoretically calculate this cost. Let's zoom in though. What other options are there? First of all, you shouldn't even think about paying for room and board because you'll need to do so regardless of whether you go graduate school (unless you're moving back into your mother's basement). Additionally, by choosing to go graduate school, you forgo the money you would have earned had you chosen to start working after receiving your bachelor's degree.
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abc inc. just paid a dividend of $1.00 this year. the stock price is $15.43 currently and the beta of the stock is 1.12. the market risk premium is 15% and the risk-free rate is 6%. using the constant-growth ddm, what is the value of abc's stock if the dividend growth increases by a constant 9% indefinitely? multiple choice question. $7.90 $7.60 $7.09 $10.49
Answer:
your mum
Explanation:
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
Answer:
It’s requires Collateral
Explanation:
A secured loan requires you to have some thing as collateral damage, for example your house if you own.
The cost of a secured loan is generally lower than the cost of an unsecured loan because it requires collateral.
What is Secured loan?A secured loan is defined as a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured loan to the creditor lending the loan.
It is a type of loan backed by collateral where a financial asset we own, such as a home or car can be used as payment to the lender if we don't repay the loan.
The idea behind a secured loan is the basic idea, so lenders accept collateral against a secured loan to encourage borrowers to repay the loan on time. After all, the prospect of losing your home or car is a powerful motivator to pay down the loan, and to avoid repossession or foreclosure.
Thus, the cost of a secured loan is generally lower than the cost of an unsecured loan because it requires collateral.
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In addition to operations, which of the following is considered a "line" function? A. accounting. B. finance. C. IT. D. procurement E. sales.
The correct answer is E. sales. therefore the correct option is (E).
A sale is a transaction that involves exchanging products or services for a certain sum of money. To put it another way, a sale is any action that includes giving the buyer possession of a thing or commodity in return for payment. In general commercial operations, sales refer to any transactions where money or value is transferred for the ownership of an item or right to a service. Sales, in the context of accounting, refers to the income generated by a corporation via the selling of goods or services (net sales).
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When the united states' foreign trading partners experience higher incomes, it benefits the u.s. by _____.
When the united states' foreign trading partners experience higher incomes, it benefits the u.s. by increasing U.S. GDP.
What is GDP?Gross domestic product (GDP) is a monetary measure of the market value of all final products and services produced by countries in a given time period. Because of its complexity and subjectivity, this metric is frequently changed before being regarded a credible indication.
As a result, GDP is defined as GDP = Consumption + Investment + Government Spending + Net Exports, or more succinctly as GDP = C + I + G + NX. Whereas consumption (C) relates to household and nonprofit organization private consumption expenditures, investment (I) refers to corporate spending.
Consumption, investment, government spending, exports, and imports are the components of GDP calculated using the expenditures approach.
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on an income statement, the revenues are more than the expenses this result in cash flow from ------- activities a. investing b. financing c. operating d. marketing
On an income statement, if the revenues are greater than the expenses, it results in cash flow from operating activities. This is because revenues and expenses are part of operating activities, while investing activities deal with investments in long-term assets, and financing activities deal with changes in liabilities and equity.
However, it is worth noting that the income statement is just one part of the cash flow statement. While the income statement records a company's revenues and expenses over a period of time, the cash flow statement reports a company's cash inflows and outflows over the same period. The cash flow statement consists of three sections: operating activities, investing activities, and financing activities.
The cash flow from operating activities shows how much cash a company generates or uses from its core operations, while investing activities show how much cash is used or generated by buying or selling long-term assets. Financing activities show how much cash is used or generated from changes in liabilities and equity.
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If martha set a goal for employees to sell $60,000 of merchandise during the month of december and gave them a directive to reorganize the break-room under the same deadline, then employees might question which of the five essential goal-accomplishment factors?.
If martha set a goal for employees to sell $60,000 of merchandise during the month of december and gave them a directive to reorganize the break-room under the same deadline, then employees might question Relevancy of the five essential goal-accomplishment factors.
Why is relevance important?
The connection between something and the topic at hand. alternatives significance. Synonyms for irrelevance include irrelevancy. the absence of any connection between something and the issue at hand.something not having any connection to the situation at hand.Relevance is a measure of how well something fits in with what is being said or done at a certain moment. The discussion of soil Ph during a gardening instruction serves as an illustration of relevance.What significance does relevance have?
Relevance has established itself as an essential yet difficult concept in formal reasoning. It is crucial because identifying the pertinent components from which a solution can be built is the first step in solving any problem.Learn more about Relevance
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Question 4 Looking ahead, what standards or guidelines will you develop to deal with the challenges raised by the engagement of business with public issues and institutions?
In order to deal with the challenges raised by the engagement of business with public issues and institutions, certain standards or guidelines need to be established.
These standards or guidelines include the following:
1. Transparency: Businesses need to be open and transparent about their involvement in public issues and institutions. They need to disclose their activities, objectives, and outcomes in a clear and concise manner
2. Accountability: Businesses need to take responsibility for their actions and their impact on society. They need to ensure that their engagement with public issues and institutions is in line with their values and ethical standards.
3. Stakeholder engagement: Businesses need to engage with their stakeholders, including customers, employees, suppliers, and communities, in a meaningful way. They need to listen to their concerns and feedback and incorporate them into their decision-making processes.
4. Compliance with laws and regulations: Businesses need to comply with all relevant laws and regulations related to their engagement with public issues and institutions. They need to ensure that they are not violating any laws or regulations that could result in legal action.
5. Respect for human rights: Businesses need to respect human rights in all their activities, including their engagement with public issues and institutions. They need to ensure that they are not contributing to human rights abuses or violating the rights of individuals or communities
6. Environmental sustainability: Businesses need to take into account the environmental impact of their activities, including their engagement with public issues and institutions. They need to ensure that they are not contributing to environmental degradation or climate change.
7. Continuous improvement: Businesses need to continuously review and improve their standards and guidelines related to their engagement with public issues and institutions. They need to learn from their experiences and feedback from stakeholders and adapt their practices accordingly.
In conclusion, the above-mentioned standards or guidelines are crucial for businesses to deal with the challenges raised by their engagement with public issues and institutions.
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What is your long term career goal?
Gordon would like to win back his customer by giving him tickets to a major league baseball game, but he knows his company frowns on this type of activity. Which type of dilemma is Gordon facing
Answer: ethical
Explanation:
Gordon would like to win back his customer by giving him tickets to a major league baseball game, but he knows his company frowns on this type of activity. Gordon is facing ethical dilemma.
Ethical dilemmas, is a dilemma that has to do with morals and principles which involves an option that isn't ethically acceptable. In this scenario, Gordon's company doesn't support activities like giving free tickets to customers and at the same time, he wants to win back his customer. He is faced with ethical dilemma as he's aware that giving out the ticket won't be supported by his company even though to him,it feels like the right thing to do to win back his customer.
In a free market setting where quantity supplied is 40 units and quantity demanded is 50 units, price will:
Answer: Increase
Explanation:
According to the Law of Supply and Demand, If the demand for the good is higher than the supply, the price will be higher to reflect the relative scarcity and if the demand is lower than supply, the price will be lower to reflect the relative excess.
In this case the quantity demanded is higher than the quantity supplied so the price will have to increase to reflect the relative scarcity of the good.
Martin owns a store that sells four different products. Each product has the same unit selling price and equal unit variable costs. This month, the sales mix has been calculated and each of the four products constitute 25% of sales as determined by number of units sold. Does Martin need to calculate the weighted-average unit contribution margin this month
Answer:
No, the weighted-average unit contribution margin is equal to the contribution margin for each of the products.
Explanation:
The weighted-average unit contribution margin is not impacted by the company-wide break-even point in units.
The weighted-average unit contribution margin is NOT equal to the contribution margin for each of the products.
The weighted-average unit contribution margin IS dependent on the sales mix percentage.
J. Morgan of SparkPlug Incorporated has been approached to take over a production facility from B.R. Machine Company. The acquisition will cost $2,540,000, and the after-tax net cash inflows will be $408,500 per year for 12 years. SparkPlug currently uses 9% as its after-tax cost of capital. Tom Morgan, production manager, is very much in favor of the investment. He argues that the total after-tax net cash inflows is more than the cost of the investment, even if the demand for the product is somewhat uncertain. "The project will pay for itself even if the demand is only half the projected level." Cindy Morgan (corporate controller) believes that the cost of capital should be 12% because of the declining demand for SparkPlug products. Required: 1. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 9% ? Use the built-in NPV function in Excel. (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.) 2. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 12% ? Use the built-in NPV function in Excel. (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.) 3. Use the built-in function in Excel to estimate the project's IRR. (Round your answer to 1 decimal places.) 4. Do a sensitivity analysis by using GOAL SEEK to determine, given estimated cash inflows, the original investment outlay that would result in an IRR of 12%. (Round your answer to nearest whole dollar amount.)
1. To calculate the estimated NPV of the project with an after-tax cost of capital (discount rate) of 9%, we can use the built-in NPV function in Excel. The NPV function takes into account the initial investment and the net cash inflows over a period of time.
The estimated NPV of the project can be calculated as follows:
NPV(rate, value1, value2, ...)
In this case, the rate is 9% and the net cash inflows for 12 years are $408,500. The initial investment is -$2,540,000 (negative because it is a cash outflow).
So the formula in Excel would look like:
=NPV(9%, -2540000, 408500, 408500, ..., 408500)
Calculating this in Excel will give us the estimated NPV of the project at a discount rate of 9%.
2. Similarly, to calculate the estimated NPV of the project with an after-tax cost of capital of 12%, we can use the same formula with the discount rate set to 12%.
The formula in Excel would be:
=NPV(12%, -2540000, 408500, 408500, ..., 408500)
Calculating this in Excel will give us the estimated NPV of the project at a discount rate of 12%.
3. To estimate the project's IRR (Internal Rate of Return), we can use the built-in IRR function in Excel. The IRR function calculates the discount rate at which the net present value of the cash flows becomes zero.
The formula in Excel would be:
=IRR(-2540000, 408500, 408500, ..., 408500)
Calculating this in Excel will give us the estimated IRR of the project.
4. To determine the original investment outlay that would result in an IRR of 12%, we can use the built-in Goal Seek function in Excel. Goal Seek allows us to set a specific target value (IRR of 12%) and determine the input value (original investment outlay) needed to achieve that target.
To perform the sensitivity analysis using Goal Seek, we would set the target cell to the IRR cell, the target value to 12%, and the input cell to the original investment outlay. Excel will then calculate the required investment outlay that would result in an IRR of 12%.
By following these steps, we can accurately calculate the estimated NPV, IRR, and perform a sensitivity analysis using Goal Seek in Excel.
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1. To calculate the estimated NPV of the project with an after-tax cost of capital (discount rate) of 9%, we can use the built-in NPV function in Excel. The NPV function takes into account the initial investment, the expected cash flows, and the discount rate.
First, we need to identify the cash flows for the project. In this case, the after-tax net cash inflows are $408,500 per year for 12 years. We will also need to consider the initial investment cost, which is $2,540,000.
Using the NPV function in Excel, we can calculate the estimated NPV by entering the discount rate, followed by the cash flows. The formula would look like this:
=NPV(9%, -2540000, 408500, 408500, ..., 408500)
The "..." represents the remaining cash flows for the 12-year period.
The estimated NPV of the project with an after-tax cost of capital of 9% would be the result of this formula.
2. Similarly, to calculate the estimated NPV of the project with an after-tax cost of capital (discount rate) of 12%, we can use the same NPV function in Excel. The only difference is that we would use a discount rate of 12% instead of 9%.
The formula would look like this:
=NPV(12%, -2540000, 408500, 408500, ..., 408500)
Again, the "..." represents the remaining cash flows for the 12-year period.
The estimated NPV of the project with an after-tax cost of capital of 12% would be the result of this formula.
3. To estimate the project's Internal Rate of Return (IRR) using the built-in function in Excel, we can use the IRR function. The IRR function calculates the discount rate that makes the Net Present Value (NPV) of the cash flows equal to zero.
In this case, we would enter the cash flows for the project as follows:
=IRR(-2540000, 408500, 408500, ..., 408500)
The "..." represents the remaining cash flows for the 12-year period.
The result of this formula will give us the estimated IRR of the project, rounded to one decimal place.
4. To perform a sensitivity analysis and determine the original investment outlay that would result in an IRR of 12%, we can use the Goal Seek function in Excel. The Goal Seek function allows us to set a target value for a cell by changing the value of another cell.
In this case, we would set the target IRR to 12% by changing the original investment outlay. We can create a formula that calculates the IRR based on the original investment outlay and use the Goal Seek function to find the value of the original investment outlay that results in an IRR of 12%.
To use Goal Seek, go to the "Data" tab in Excel, click on "What-If Analysis," and select "Goal Seek." Set the "Set Cell" as the IRR cell, the "To Value" as 12%, and the "By Changing Cell" as the original investment outlay.
Once Goal Seek finds the value that achieves the target IRR of 12%, it will provide the original investment outlay needed, rounded to the nearest whole dollar amount.
By following these steps and using the appropriate functions in Excel, you can calculate the estimated NPV, IRR, and perform a sensitivity analysis for this project.
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Malaki ran 9,656 meters on Monday and 4,687 meters on Tuesday. How many more meters did she run on Monday than on Tuesday?
Answer: 4969 meters
Explanation: Here's what you do: 9,656 - 4,687 = 4969
Answer: 4969 meters
Explanation:
Malick has a videoconference with two
coworkers this afternoon and is trying to
position his camera for the best results.
Which of these would provide the BEST
background?
When there is a videoconference, the one that would provide the best background is a blank wall with a plant and some books on a shelf. Hence, Option A is correct.
What is a video conference?Through the use of video conferencing technology, remote employees can communicate. The technology allows two or more people who are dispersed across several locations to have live audio and video connections.
A style of teleconference in which there are more than two participants and who use a computer, smartphone, etc. to send and receive both audio and video data.
Therefore, Option A is correct.
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Convincing a person using appeal and understanding is_____.
Answer:
persuasion or pathos?
Which of the following best describes the law of supply and demand?
A. When a desirable product or service is plentiful, its value increases.
B. Businesses can charge extra for products that people use every day.
C. When there is a high demand for a product, it is hard to supply.
D. When a desirable product or service is scarce, its value increases,
Answer:
d is you answer
Explanation:
Answer:
D. When a desirable product or service is scarce, its value increases.
Explanation:
Because more people want a product that there is less of, meaning they will raise the price.
The bookkeeper for Sandhill Co. asks you to prepare the accrual adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(a) Interest on notes payable of $290 is accrued.
(b) Services performed but unbilled totals $1,910.
(c) Salaries of $900 earned by employees have not been recorded.
Answer:
(a) Interest on notes payable of $290 is accrued.
Dr Interest expense 290
Cr Interest payable 290
(b) Services performed but unbilled totals $1,910.
Dr Unbilled revenue 1,910
Cr Service revenue 1,910
(c) Salaries of $900 earned by employees have not been recorded.
Dr Salaries expense 900
Cr Salaries payable 900
the _____ of a stock reflects stockholders’ confidence.
a. Market capitalization
b. Dividend yield
c. Earnings per share
d. Stock price
The d) stock price of a stock reflects stockholders’ confidence.
A stock is an ownership stake in a corporation. A stock symbol represents it, and shares of stock can be purchased and sold in the stock market. The stock price is determined by market supply and demand forces, which are influenced by company financials, industry trends, and macroeconomic conditions. The stock price reflects stockholders’ confidence. If a company is doing well and has strong earnings, dividends, and future prospects, investors may be more willing to buy and hold its stock, which may drive up the stock price.
On the other hand, if a company is struggling with declining sales, rising costs, or other difficulties, investors may be less confident and sell their shares, resulting in a lower stock price. Therefore, a stock's price can be seen as a reflection of the overall health of a company, as well as investors' perceptions of its future prospects.
Therefore, the correct answer is d. Stock price
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under the five forces framework, how can the market power of customers impact a seller's profitability?
Market power of customers is an essential aspect of the Five Forces Framework that can significantly impact a seller's profitability. A seller must be aware of their customers' market power to adapt their strategies accordingly and ensure sustainable success in competitive business environment.
When customers have a high degree of market power, they can exert significant influence on the prices and terms of trade with sellers. This is because they have a variety of options to choose from, or they can negotiate better deals due to their purchasing volume. In such scenarios, sellers may have to reduce their prices, offer better product quality, or provide additional services to attract and retain customers. This can erode the seller's profit margins and negatively impact their profitability.
Conversely, if customers have low market power, they have limited options and less bargaining power, allowing the seller to maintain or even increase their profit margins. In this case, the seller's profitability is less affected by the customers' demands and preferences.
Understanding the market power of customers can help a seller adopt appropriate strategies to maintain or improve profitability. This may involve focusing on differentiating their products or services, building strong relationships with key customers, or identifying ways to reduce their dependence on powerful customers.
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Companies that sell printers for at-home use usually sell the printers at a low price point and sell the corresponding ink cartridges at a very high price point. This strategy is known as ____________.
Companies that sell printers for at-home use usually sell the printers at a low price point and sell the corresponding ink cartridges at a very high price point. This strategy is known as Captive product pricing.
Captive product pricing refers to the price of goods that include both a core product and a number of auxiliary or supplementary products that are necessary for the primary product to give its full value. The core product might on occasion be cheap or offered at a discount as compared to peripheral products, which must be acquired in order for the core product to be valuable. This enables the sale of goods with greater margins than the primary item.
Making a core product that exemplifies the fundamental value of the entire product line and following it up with other items that provide enhanced value is one approach to achieving this. Product line pricing, which involves the division of goods and services into cost categories in order to generate multiple perceived quality levels in customers' thoughts, includes captive product pricing.
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Step 5 in the seven-step decision-making model is _____.
Answer:
Choose among alternatives
Explanation:
Answer:
Identify options
Explanation:
While owning stocks can create strong profits for investors, what makes buying stocks riskier than buying bonds ?
Answer:
While owning stocks can create strong profits for investors, buying stocks is considered riskier than buying bonds because stocks are more volatile and can fluctuate significantly in value depending on the performance of the underlying company or the overall stock market. Additionally, there is no guarantee that a company will pay dividends or that the stock price will increase, whereas bonds usually pay a fixed interest rate.
You just obtained a credit card. you immediately purchase a digital camera for $160. your credit limit is $4000. let’s assume that you make no payments and purchase nothing more and there are no other fees. the monthly interest rate is 1.42%. what is the growth factor of your credit card balance? a. 0.0142 b. 14.2 c. 1.0142 d. 1.42
The growth factor of your credit card balance is 1.0142. This is calculated by taking the monthly interest rate of 1.42% and adding it to 1, giving us a growth factor of 1.0142.
In this scenario, you have a credit limit of $4,000 and you have just purchased a digital camera for $160. Since you make no payments and purchase nothing more and there are no other fees, your balance will grow by the growth factor of 1.0142 each month.
To find the growth factor of a balance with an interest rate, you can use the formula:
Growth factor = 1 + (interest rate / 100)
In this case, the interest rate is 1.42%, so you can plug that into the formula:
Growth factor = 1 + (1.42 / 100)
Simplifying the fraction gives you:
Growth factor = 1 + 0.0142
Adding the two numbers together gives you the growth factor:
Growth factor = 1.0142
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