Over the past several years General Motors (GM), like other auto manufacturers, has introduced many new models of sport utility vehicles (SUVs) in all its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, GM offered rebates of up to $5,000 or no-interest financing on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions. In which stage of the product life cycle is GM currently operating?
A. market growth
B. sales decline
C. market introduction
D. market establishment
E. market maturity
Answer: E
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Refer to the following selected financial information from Gomez Electronics. Compute the company's debt-to-equity ratio for Year 2. Year 2 Year 1 Net sales$487,000? $427,950? Cost of goods sold 278,000? 251,820? Interest expense 11,400? 12,400? Net income before tax 68,950? 54,380? Net income after tax 47,750? 41,600? Total assets 320,500? 298,200? Total liabilities 172,900? 169,000? Total equity 147,600? 129,200?
A. 2.17. B. 1.85. C. 0.85. D. 3.30. E. 1.17.
One of the driving forces in the democratization of digital media is
A) online voting. B) public opinion surveys. C) telecommuting. D) social bookmarking. E) online shopping.
By law, the only person a maker must provide for in a will is a(n)
a. minor child. b. spouse. c. aged parent. d. grandchild.
Shabby Chic fashion boutique has responded to economic trends by placing an emphasis on improving the quality of merchandise it offers, improving customer service, and reducing its cost of goods sold because consumers are not shopping as much as they used to due to lower purchasing power. Shabby Chic is apparently dealing with which level of economic activity?
A. stagflation B. recession C. inflation D. stagnation E. distension