Other things the same, if the price level rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales.
b. higher than desired prices, which depresses their sales.
c. lower than desired prices, which increases their sales.
d. lower than desired prices, which depresses their sales.
Ans: b. higher than desired prices, which depresses their sales.
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The ________ a corporation keeps to finance future expansion are known as retained earnings
A) dividends B) stock C) bonds D) profits
Young Faces Forever is a skin care company based in the United States that wants to enter the Japanese market. Suppose the managers of Young Faces are aware that there are significant social customs in Japan regarding skin products and these customs are unknown to the managers of Young Faces. All else equal, which of the following entry methods is the least likely to be successful for Young Faces?
A) partnership B) joint venture C) independent entry D) merger
Refer to the above figure. The firm is currently producing at Q2. The firm should
A) reduce production. B) leave production as it is. C) increase production. D) shut down.
The practice of dividing packages of debts into slices, each with different risk and return characteristics, is called:
A. leveraging. B. bundling. C. pooling. D. tranching.