Travelocity's initial strategy was to concentrate on airline ticketing, hotel booking, and selling advertisements on its Web site
This business model worked very well until the airlines eliminated travel agents' commissions and competitors entered the market successfully.
Indicate whether the statement is true or false
TRUE
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Test markets do not yield infallible results. Sometimes test markets lead to the wrong decision
Indicate whether the statement is true or false
On December 31 . 2014, Endive Company leased a machine under a capital lease for a period of ten years, contracting to pay $100,000 on signing the lease and $100,000 annually on December 31 of the next nine years. The present value at December 31 . 2014, of the ten lease payments over the lease term discounted at 1 . percent was $676,000 . At December 31 . 2015, Endive's total capital lease
liability is a. $486,000. b. $518,000. c. $533,600. d. $607,960.
Firms use long-term financing for
a. assets they expect to convert to cash in the short run. b. assets to be used over long periods. c. liabilities they expect to convert to cash in the short run. d. liabilities to be used over long periods. e. shareholders' equity they expect to convert to cash in the short run.
Traditional record labels are now able to control the online distribution piracy problems that had plagued the music industry
Indicate whether the statement is true or false