Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?
A) Penetration pricing
B) Psychological pricing
C) Breakeven pricing
D) Fixed pricing
E) Dynamic pricing
Answer: E
Explanation: E) Dynamic pricing, like eBay's auction bidding, uses flexibility between buyers and sellers in setting a price and uses the Web to instantly notify millions of buyers of product availability and price changes.
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Which of the following deal with transaction legitimacy?
a. transaction authorization and validation b. access controls c. EDI audit trail d. all of the above
Of the three cost-flow assumptions, when prices fall FIFO results in balance sheet figures that are _____, cost of goods sold will _____, and _____ reported net income
a. closest to current cost, be out of date, highest b. out of date, closest to current cost, highest c. closest to current cost, be out of date, lowest d. out of date, closest to current cost, lowest e. closest to current cost, closest to current cost, highest
A corporation plans to invest $1 million in oil exploration. The corporation is considering two plans to raise the money. Under Plan #1, bonds with a contract rate of interest of 6% would be issued. Under Plan #2, 50,000 additional shares of common stock would be issued at $20 per share. The corporation currently has 300,000 shares of stock outstanding, and it expects to earn $700,000 per year before bond interest and income taxes. The net income and return on investment for both plans is shown below:?Plan #1 Plan #2Earnings before bond interest and taxes$ 700,000 $ 700,000Bond interest expense(60,000)?Income before taxes.$ 640,000 $ 700,000 Income taxes(224,000)(245,000)Net income$ 416,000 $ 455,000 ???Equity$8,000,000 $9,000,000 Return on
Equity5.2%5.06%Comment on the relative effects of each alternative, including when one form of financing is preferred to another. What will be an ideal response?
Only niche companies will end up using a single distribution network
Indicate whether the statement is true or false.