Which of the following statements about companies that adopt a differentiation strategy is true?
A. They believe that people will pay more for a product that is unique in some way.
B. Their focus is on being as efficient as they can be.
C. They concentrate on developing large quantities of the same product, thereby providing cost advantages to their customers.
D. They are more likely to take a mechanistic approach to organizational design.
E. They rely on selling products at the lowest possible cost.
Answer: A
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A public relations firm is trying to convince a former president of the U.S. that he needs the services of this publicist. When the publicist says, "We currently are handling public relations for the royal family of Monaco, Prince Andrew of Great Britain, and Colin Powell," the public relations firm is using a prestige proposition.
Answer the following statement true (T) or false (F)
Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.45%. The real risk-free rate is r* = 2.80%, the default risk premium for Crockett's bonds is DRP = 1.00% versus zero for T-bonds, the liquidity premium on Crockett's bonds is LP = 0.90% versus zero for T-bonds,
and the maturity risk premium for all bonds is found with the formula MRP = (t - 1) 
0.1%, where t = number of years to maturity. What inflation premium (IP) is built into 5-year bond yields?
A. 1.40%
B. 1.10%
C. 1.11%
D. 1.33%
E. 1.25%
When the defendant is found guilty, the jury imposes the sentence
Indicate whether the statement is true or false.
Assuming that Luther's bonds are rated AAA, their price will be closest to ________
Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon rate of 7.5% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: Rating AAA AA A BBB BB YTM 6.60% 6.80% 6.90% 7.30% 7.80% A) $1064 B) $1277 C) $1490 D) $852