When Procter & Gamble wanted to enter the hair care market, it purchased Wella, a leading German company specializing in hair care products. What new product category does this acquisition represent for P&G?
A. repositioning strategy
B. new product line
C. addition to an existing product line
D. discontinuous innovation
E. revision to existing products
Answer: B
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Which of the following is an example of related diversification?
A. Purchasing from different vendors B. Using a newer medium for advertising C. Developing a management information system D. Targeting another market segment E. Operating in similar locations
John Right, an analyst with Stock Pickers Inc, claims: "It is not worth my time to develop detailed forecasts of sales growth, profit margins, et cetera, to make earnings projections. I can be almost as accurate, at virtually no cost, using the random walk model to forecast earnings.". What is the random walk model? Do you agree or disagree with John Right's forecast strategy? Why or why not?
Paulen Company sold an asset that cost $120,000 and had a book value of $72,000 for $90,000 . Using the indirect method,
a. $18,000 would be deducted from net income in the operating activities section and a cash inflow of $120,000 would be listed in the investing activities section of the statement of cash flows. b. $30,000 would be added to net income in the operating activities section and a cash inflow of $90,000 would be listed in the investing activities section of the statement of cash flows. c. $30,000 would be added to net income in the operating activities section and a cash inflow of $120,000 would be listed in the investing activities section of the statement of cash flows. d. $18,000 would be deducted from net income in the operating activities section and a cash inflow of $90,000 would be listed in the investing activities section of the statement of cash flows.
________ is defined as the substantial likelihood that a person either committed or is about to commit a crime
A) Reasonable suspicion B) Reasonable doubt C) Probable cause D) Preponderance of evidence