Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality and exclusive, so he sets the price high. He knows that after this season, the price may need to decrease as the market evolves. Jean Claude is using a ________ strategy.
A. penetration pricing
B. price skimming
C. target ROI
D. competitor-based pricing
E. value pricing
Answer: B
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Activity-based responsibility accounting adds the consumer perspective to the financial-based responsibility accounting perspective
Indicate whether the statement is true or false
All of the following are economic factors that can cause a firm's price-earnings ratio to be higher than that of other firms in the same industry except:
a. when investors expect that the firm's strategy enables it to generate and sustain greater profitability for a given cost of equity capital b. when the firm earns the same profitability but with lower risk and, therefore, a lower cost of equity capital c. a firm's business model that enables it to generate faster growth in earnings provided the growth creates positive residual ROCE d. a firm's business model that results in slower growth in earnings and this creates negative residual ROCE
Discuss the how the generic strategies of cost leadership, differentiation and focus may be used by new ventures and small businesses.
What will be an ideal response?
Daniel, his parents, and three brothers own all the stock of their family farm corporation and each person takes an active role in managing the enterprise. This corporation, which is taxed as a corporation, is most likely
a. an S corporation. b. a professional corporation. c. a close corporation. d. a proprietorship.