Which of the following is closely associated with the diversification strategy?
a. Entering new markets with little competition
b. Increasing overhead production costs
c. Decreasing the prices of existing products
d. Selling modified products to the same customers
ANSWER: a
Diversification is a strategy of increasing sales by introducing new products into new markets. It can be very profitable when a firm is entering markets with little or no competition.
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When Austin asks the CEO of Diamonite about the amount of money he is prepared to spend on an individual hamper, and if the hampers are to be seasonal gifts, Austin is engaging in:
A. source partnering. B. investigative selling. C. transactional selling. D. probing. E. manipulation.
Financing a business means obtaining funds so the business can begin and continue operating
Indicate whether the statement is true or false
A special assessment tax is:
A. A waiver of property taxes for businesses willing to locate within a government's jurisdiction. B. Assessed only against certain property owners who are deemed to benefit from the service or project being paid for by the proceeds of the special assessment levy. C. Assessed against all property owners following a referendum in which voters approved the special project being constructed. D. None of the above.
The projected cash flow for the next year for Minesuah Inc. is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
A. $1,714,750 B. $1,805,000 C. $1,900,000 D. $2,000,000 E. $2,100,000