The managers at Camphor Plastics decided that their firm needed to diversify because of overall falling sales and lower performance in one sector. How does diversifying compensate for the lackluster performance in this sector?
A. by having higher performance in another sector
B. by increasing the firm's risk in another sector
C. by motivating managers
D. by sharing their market power
Answer: A
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Which of the following statements is CORRECT?
A. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers. Thus, cannibalization is dealt with by society through the antitrust laws. B. If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward. C. If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized. D. Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself. E. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors. Thus, cannibalization is dealt with by society through the antitrust laws.
Name five of the seven challenges and/or opportunities facing the field of OB. Describe one in more detail, explaining why it is a challenge and/or opportunity.
What will be an ideal response?
____________ customers want to avoid paying big bills but don't care as much about response times
a. basic needs b. risk avoider c. hand holder d. intermediate needs e. advanced needs
Carlton has developed a new cell phone that projects onto a surface instead of having a screen; this permits the user to attach it to a stand or lean it on one surface and use the surface it projects onto for the screen. By eliminating the screen, it can be made watch-size and worn on the wrist, as a pendant on a necklace, attached to a set of keys, or carried comfortably in one's pocket. Because he is certain the demand for the product will be high, he is setting the highest possible price for the new product. What pricing strategy is he using?
A. Price skimming B. Penetration pricing C. Differential pricing D. Negotiated pricing