Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________
A) inelastic demand
B) direct purchasing
C) decision framing
D) a modified rebuy
E) a straight rebuy
A
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Consumer tastes and preferences are changing due to ______.
a. growing health awareness b. the U.S. population becoming younger c. increasing costs of most consumer goods d. difficulty of procuring staple food items
The "full cost view of maintenance" results in more firms choosing a policy of breakdown maintenance, when compared to the "traditional view of maintenance."
Indicate whether the statement is true or false
Which of the following is true about the P/E ratio of a firm??
A. ?The higher the P/E ratio, the less investors are willing to pay for each dollar earned by the firm. B. ?If a firm's P/E ratio is 8, then, it would take 8 years for an investor to double his or her initial investment. C. ?The appropriate value of P/E ratio is multiplied with EPS to estimate the stock price. D. ?If a company's P/E ratio is too high relative to that of similar firms, its earnings have not been fully captured in the existing stock value. E. ?If the firm's P/E ratio is too low relative to that of similar firms, it means that the market has overvalued its current earnings.
Outsourcing can be risky because it decreases the firm's strategic flexibility
Indicate whether the statement is true or false.