What is bundle pricing? Give three examples, each one from a different industry.
What will be an ideal response?
Bundle pricing is the packaging together of two or more products, usually of a complementary nature, to be sold for a single price. To be attractive to customers, the single price usually is considerably less than the sum of the prices of the individual products. Being able to buy the bundled combination in a single transaction may be of value to the customer, increasing convenience and a sense of value. Bundle pricing is used commonly for banking and travel services, computers, and automobiles with option packages. Bundle pricing can help to increase customer satisfaction. It can also help firms to sell slow-moving inventory and increase revenues by bundling it with products with a higher turnover.Examples: (1) An airlines company that offers accommodation for cheap when reserving tickets to a particular place. (2) A fast-food chain offering soda with a burger for a cheaper price than the price of the two when purchased separately. (3) A computer retailer offering accessories for a lower price, when combined with the purchase of a laptop.
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An inherent risk related to long-lived assets is the incomplete recording of disposals
a. True b. False Indicate whether the statement is true or false
Earnings per share of common stock (assuming no convertible or other potentially dilutive securities outstanding)
a. equals net income attributable to common stock divided by the weighted average number of common shares outstanding during the period. b. equals net income attributable to common stock divided by the number of common shares outstanding at the beginning of the period. c. equals net income attributable to common stock divided by the number of common shares outstanding at the end of the period. d. all of the above. e. none of the above.
Investments in stocks that are expected to be held for the long term are listed in the stockholder's equity section of the balance sheet
Indicate whether the statement is true or false
State law provides that existing shareholders may buy new issues of stock in the same
proportion as their current holdings. This is done to allow the current stockholders to keep the same voting and dividend rights they had before the new issue. This right is known as a right of: A) Ratification. B) Preemption. C) Buy-sell. D) First refusal. E) Redemption.