In computing an expected value (EV), the weights are
a. decision alternative probabilities.
b. the payoffs.
c. expected outcomes.
d. the state-of-nature probabilities.
d
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Mick likes to attend political debates at which there is time set aside for discussion. He also tends to relate what he hears to his own views on a variety of topics. These actions are indicative of which style of listener?
A. people-oriented B. action-oriented C. content-oriented D. time-oriented
Which of the following is true of penetration pricing?
A) Penetration pricing is a variation of a premium pricing strategy. B) Penetration pricing is a mass-market strategy rather than a niche strategy. C) Penetration pricing is best used when there are no competitors in the market and entry is difficult. D) Penetration pricing is used in a market where product differentiation is high. E) Penetration pricing is most effective when potential customers are quality-sensitive rather than price-sensitive.
The duration of a franchise is a matter determined by federal or state statutes
Indicate whether the statement is true or false
Which of the following statements is most CORRECT?
A. Tax considerations often play a part in mergers. If one firm has excess cash, purchasing another firm exposes the purchasing firm to additional taxes. Thus, firms with excess cash rarely undertake mergers. B. The smaller the synergistic benefits of a particular merger, the greater the scope for striking a bargain in negotiations, and the higher the probability that the merger will be completed. C. Since mergers are frequently financed by debt rather than equity, a lower cost of debt or a greater debt capacity are rarely relevant considerations when considering a merger. D. Managers who purchase other firms often assert that the new combined firm will enjoy benefits from diversification, including more stable earnings. However, since shareholders are free to diversify their own holdings, and at what's probably a lower cost, research of U.S. firms suggests that in most cases, diversification through mergers does not increase the firm's value. E. Research of U.S. firms suggests that managers' personal motivations have had little, if any, impact on firms' decisions to merge.