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Specify three possible options that Nintendo should consider and justify the most suitable choice using SAF criteria.

SAF criteria Nintendo can decide to pursue a pricing, quality, or innovative strategy to enhance its competitive advantage. Figure 1: pricing strategy Pricing Strategy Suitability Pricing strategy will address the key opportunities and constraints Nintendo faces. A lower price can be achieved by utilizing less expensive components, and the end...

Discuss the differences between the Planning and Emergent Schools of Strategy. Discuss the importance of emergent strategy in fast-changing environments.

The strategic planning process often goes through several stages that aim to facilitate the achievement of an organization’s objectives. The typical planning process often includes the analysis of the external and internal environments, definition of the business and the mission, setting the goals, formulation of strategies, and developing procedures for...

Using relevant strategic analysis at the macro, industry, and micro levels, critically discuss the key strategic issues that Nintendo is currently facing.

The video gaming industry is dominated by Sony, Microsoft, and Nintendo. The three firms are fiercely competing to outdo each other. Their strategies mainly revolve around innovation, pricing, and adoption of the latest technologies. Nintendo has been the market leader for a long time but was outdone with the entry...

The rate of technological innovation has a significant impact on all high-tech industries, including Video Game Consoles. What recommendations would you make for Nintendo to cope with these changes in the future?

First, the company should adopt technologies that are less costly so as not to follow in Sony’s footsteps of producing each gaming device at an estimated $ 805 and selling it between $499 and $599. Secondly, the company should adopt technologies that will ensure that its products stand out just...

1) How structurally attractive was the health club industry in 2004? What average level of return would you expected to support? 2) What do you see as a key trend in the industry in 2004? How do you think these trends will affect profitability and evolve?

1) Many business models were invented in 2004 to attract customers. Owner-operated clubs were based on single-location operations, although small regional chains were created. Franchised clubs operated under the brand umbrella. There were also design companies and health spa that provided support to the health club industry. Thee models were...

What are the basic economics of health clubs?

Health clubs charged a fee for joining and for a monthly subscription. The industry received about $ 800 per member annually, but this index varied significantly in the country. The club members usually had to subscribe for a minimum of one year. 66 % of members renewed the subscription. Clubs...

What is FDI? How does FDI benefit the host country?

Foreign direct investment (FDI) is a direct investment in a host country by an international firm. It is the investment of foreign assets into the host country’s business or companies, but not in its stock markets. FDI is a durable and long-term investment that can stay irrespective of the prevailing...

What are the costs of FDI to the host country? How do governments influence FDI?

There is the ‘headquarter effect’ when a foreign firm acquires a local firm. For instance, an international firm may decide to shut down critical aspects of the local firm due to centralization. This strategy could reduce the number of high-skill jobs and chances of growth in the host country. Moreover,...

What should GE do about satisfying customers who are not so environmentally conscious?

General Electric Company is a mega-company that seeks to expand its business and gain a larger share of the market. The issues of global warming due to the emission of carbon dioxide threaten the company’s lucrative business of selling steam engines that use coal and petroleum products because environmentalists advised...

Due to expanded operations, your organization must increase its dependence on intermodal transportation services. You need to set the intermodal transportation requirements of your company. What would you do, and what factors should you consider? How do you decide what combinations of intermodal transportation should be employed? Explain.

When small companies start to expand, the issue of logistics becomes as topical as it has never been before. The routes that once seemed perfect suddenly become useless and new methods of transportation have to be chosen. However, by far, the most complicated logistics issue concerns the choice of intermodal...

Your department is responsible for inventory control. Recent fluctuations in demand and orders have caused overages in inventory. What options do you have? How do you implement changes in the supply chain?

Fluctuations in demand are inevitable when dealing with any kind of product, since, no matter how essential the given product could be. There will always be competitors, oversaturation of the market with the given product, or any other issue that will finally lead to demand rates swinging from high to...

Analyze the PC industry. Are the dynamics favorable to Apple or problematic? Explain.

Though personal computers were first made by Apple Company, IBM Company mainstreamed the market in 1980. Later on, in the early 1990s, Wintel Company was dominating the industry. Expanding the capabilities of computers and cheap prices were the main factors mainstreaming the growth of personal computers. By the beginning of...

What, historically, has been Apple’s competitive advantages?

On 1st April 1976, Steve Jobs and Steve Wozniak, together with other college dropouts in the USA, founded Apple Computers, and after several months, they had produced 200 units. This made them take on a new partner, Markkula, Jr., who was known to be an experienced businessman and used to...

What is the moral point of view and why is it important? Does it make sense to say that business people must operate from the perspective of the moral point of view? Why, or why not?

Individuals who are mature enough are well endowed with unique cognitive capacities according to the moral point of view. Values, emotions, and aspirations of each individual vary across the board. This point of view identifies the uniqueness of each individual. On the other hand, sympathy has been associated with the...

Central to Duska’s discussion and his conception of loyalty, do you find his account of loyalty convincing? What elements of it might you disagree with? What implications might an altered conception of loyalty have on his contention that whistle blowing does not require moral justification?

Information on any moral misconduct within an organization can be released by either an active or a past employee to point out the ills being perpetrated. In the event of whistleblowing, there must be an incident taking place against the interests of the public. Duska argues that loyalty is not...

Epstein claims that the positions of both employers and employees are essentially even with regard to EAW. Do you find this line of argument convincing? Why or why not?

The employment contract is defined by several factors. For instance, an employee has the freedom to quit employment. Besides, an employer can dismiss an employee from work. The wishes of an employer are also fulfilled by an employee according to the directions stipulated at the workplace. Common law is the...

In recent years, Chrysler Corporation initiated three-shift or nearly continuous (21-hours-per-day) production at a number of its plants. Explain why Chrysler’s decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular (and profitable) vehicles, its minivans and Jeep Cherokee? What risks might such a plan pose?

Labor and capital are costly requirements for a firm like Chrysler Corporation. To expand its product portfolio, the automobile company demands an additional capital. Besides, any slight change in technology in manufacturing its vehicles requires surplus investment. On the same note, hiring both professional and semi-skilled staff who can turn...

A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights. (a) In the short run (next few months), what measures should the restaurant take to maximize its profits? Explain. (b) In the long run (next six months and beyond), how can it maximize its profits? (Assume that the impressive state of demand is permanent).

a) In the short run (next few months), what measures should the restaurant take to maximize its profits? Explain. The French restaurant enjoys monopolistic competition. In order to maximize its profitability in the short run, the management of the restaurant should apply an effective and practical economic model. As a...

The last decade has witnessed an unprecedented number of mega-mergers in the banking industry: Bank of America’s acquisitions of Fleet Bank, MBNA, and U.S. Trust; Bank of New York’s acquisition of Mellon Financial; and Wells Fargo’s acquisition of Wachovia, to name several of the largest consolidations. Besides growth for its own sake, these superbanks are able to offer one-stop shopping for financial services: everything from savings accounts to home mortgages, investment accounts, insurance vehicles, and financial planning. (a) In the short run, what are the potential cost advantages of these mergers? Explain. (b) Is a $300 billion national bank likely to be more efficient than a $30 billion regional bank or a $3 billion state-based bank? What economic evidence is needed to determine whether there are long-run increasing returns to scale in banking? (c) Are these mergers predicated on economies of scope?

Question a: Mergers in business management are critical in generating enough resources for an organization to operate effectively while providing a platform for a harmonized management approach. In the banking sector, the option of merging is usually a major capital budgeting undertaking. It largely saves costs and improves economic gains....

Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms. Could lower transaction costs in e-commerce ever make it easier for small suppliers to compete? Network externalities are often an important aspect of demand for information goods and services. How might network externalities affect firm operating and firm size?:SJ

Over the years, e-commerce is a core factor in determining the levels of growth of small and growing businesses. However, the growth and development of a business such as a grocery shop may suffer major setbacks related to the small size of operations, reduced economies of scale, and transaction problems....

A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; and in summer, golf, tennis, and hiking. The resort’s operating costs are essentially the same in winter and summer. Management charges higher nightly rates in the winter, when its average occupancy rate is 75 percent, than in the summer, when its occupancy rate is 85 percent. Can this policy be consistent with profit-maximization? Explain.

Price maximization entails determining both the price and output levels to gain maximum gains. Several approaches can be used to maximize profits. First, the latter can be attained by increasing the prices of goods and services. It is important to evaluate and note the difference between marginal revenue and marginal...

In what respects are the following common practices subtle (or not-so-subtle) forms of price discrimination? (a) Frequent-flier and frequent-stay programs (b) Manufacturers’ discount coupon programs (c) A retailer’s guarantee to match a lower competing price.

(a) Frequent-flier and frequent-stay programs: Frequent-fliers are incentive programs used by airlines to reward clients who have continuously been loyal travelers. The strategy aims to reduce travel costs to persuade travelers to become lifetime clients. Frequent-stay is a program that offers free stay in hotels for travelers who use hotel...

Using the model for goal setting, evaluate Allstate Insurance Company’s goal setting process to determine whether or not Allstate has an effective goal-setting program.

The main objective at Allstate is to bring together the differences in the workforce to achieve its mission and boost business success. In doing this, it has developed four major steps in setting its goals. These are succession programming, development, measuring steps, and accountability, and reward. Goal setting is a...

Discuss the organizational change that Nestle has undergone. Identify whether the changes were first order and/or second order and the rationale for your decision.

Nestle is a company that was established with the main goal of producing food products. The company has made several changes to enhance sustainability in the turbulent market. The first change was experienced when the company started to expand internationally. Several outlets were opened in foreign countries. This strategy was...

Discuss whether or not the organizational changes that Nestle has undergone were with an incremental approach as emphasized by Brabeck-Letmathe.

An incremental approach involves making small changes with time. The ultimate goal is to achieve significant changes by making small steps. An incremental approach in organizational change requires management to make small changes to ensure that all stakeholders get adapted to the new structures. The changes made by Brabeck-Letmathe were...

The figure below is an index of the multilateral real exchange rate (ε= EP/P*) for the British pound (GBP). 1) Explain why the multilateral real exchange rate may be used as a measure of international price competitiveness. 2) Following an increase in the real exchange rate expenditure on imports is typically expected to decline. True, False or Uncertain? Explain.

1) The multilateral real exchange rates are calculated based on many currencies. The multilateral exchange rates help to determine the dynamics and performance of a country’s currency relative to major world currencies. In calculating multilateral exchange rates, one takes some world currencies, assigns them relative weights, and then computes the...

1) Explain the concept of the ‘sacrifice ratio’ and its relationship to disinflation 2) Comment briefly on why the ‘sacrifice ratio’ may differ between countries.

1) The sacrifice ratio refers to the cost of outputs that result from a reduction of the inflation rate by one percentage point over a given period. One way of reducing inflation is through stringent monetary policies that lower the inflation rate by one percent over a given period. The...

Do alcohol manufacturing companies fulfill their ethical duty to be informative and faithful in advertising? Do they generally hold their ethical duty to minimize potential harm to society from underage drinking?

It would be a blanket accusation if say that all alcohol manufacturing companies fail in their ethical duty to be informative and be faithful in advertising. However, it would be an overstatement to say that alcohol companies satisfy this requirement. Because of the price wars that are evident in the...

Should there be more restrictions on alcohol advertising? What limits are needed? Explain how a ban or restriction could meet the central Hudson guidelines

There is a need for restrictions in alcohol advertisement so that the vulnerable youth that seem to be the target of the alcoholic beverage manufacturers can be salvaged from underage drinking that risks interfering with their health and career life. The agencies that are charged with monitoring the contents of...

1) With the aid of a diagram explain the equation set out below: W/P = f(u, z). where W/P is the real wage, u is the unemployment rate and z is a vector of external variables. 2) Using your diagram from 1) above illustrate the impact of a rise in unemployment benefits. Explain your answer.

1) The equation W/P = f (u, z) is a wage-setting (WS) equation. An equilibrium in the labor market is attained when the WS relation is equal to the price-setting (PS) equation. The WS is the employees’ bargaining place while the PS is the company’s position. The wages (W) are...

Explain the IS-LM open economy model. Using the model, assuming a flexible exchange rate, examine the effect of a fall in government expenditure on output, the interest rate, the exchange rate and the level of exports.

An open economy is open to foreign trade of goods and services. An open economy means that there is a high demand for a country’s products abroad (exports) and a decrease in domestic demand for its products because of the imports. Thus, spending in an open economy is given by:...

What benefit objectives are measured in an electronic commerce initiative?

Different organizations apply diverse benefit objectives to measure the success of any commerce initiative. Most business organizations apply customer acquisition and value capture methods. Additionally, “client loyalty and retention” measures have also been applied. Customer acquisition may be monitored in many ways. These include new clients obtained, the proportion of...

What are the difficulties in processing “Card Not Present” credit card transactions?

There are several challenges associated with the processing “Card not present” credit card transactions. Duplicate transactions are one of the potential difficulties experienced by these groups of merchants. The situation is very detrimental because it may lead to a massive loss of capital. Internet fraud, including the instances of “friendly...

Why do websites use Cookies? Why were they first devised and where are they stored?

There are several reasons why websites use cookies. Web sites attach cookies to individuals’ computer hard drives minus their consent. Simply defined, a cookie refers to a distinct identifier placed on a person’s computer by a particular web server. Cookies enable these web servers to assign a unique personal serial...

What are the advantages and disadvantages of using a mall-style CSP?

The CSP program has many advantages. It enables clear and adequately planned presentations by the sales personnel. The program allows the logical flow of information. Additionally, it instills a sense of confidence amongst the inexperienced sales personnel. The program forms an effective method of presentation, particularly, during shorter selling periods....

What is the Balance of Payment?

Balance of payment (BoP) involves an accounting system that endeavors to explore how two or more countries conduct their international transactions within a given duration of time. An international transaction between two countries can be recorded as a debit or a credit transaction. In a credit transaction, money tends to...

Explain Adam Smith’s absolute advantage theory.

Between the 17th and the 18th centuries, mercantilism emerged as a dominant economic philosophy. This particular economic philosophy advocated for aggressive efforts towards increasing exports and severe restrictions towards reducing imports. Nations would, therefore, become rich by exporting more than they imported. By developing the absolute advantage theory, Adam Smith...

What is the European Union and what is its purpose?

The European Union (EU) is a political and economic partnership of 27 European countries. The Europe Commission (EC) is the precursor of the EU. It was founded after the Second World War by six states with the objective of fostering economic cooperation. Economic cooperation was seen as a way of...

What does a trade bloc mean? Provide the examples of trade blocs.

A trade bloc refers to an intergovernmental agreement aimed at removing or significantly reducing trade barriers within member countries. A trade bloc consisting of geographically close or neighboring countries is known as an integration or regional trade agreement. A trade bloc helps to reduce or eliminate barriers to trade. It...

Describe regulatory activities that affect an international business.

Various regulatory activities affect international business. One of these regulatory activities is a boycott. A boycott is an organized effort aimed at restraining a firm from undertaking business with a given seller of services or products. Boycotts are useful in the international arena for economic and political reasons. An example...

What are the functions of the International Monetary Fund and the World Bank?

Both the International Monetary Fund (IMF) and the World Bank perform important functions in the global economy. The IMF is charged with the responsibility of fostering global economic growth and stability. Also, the IMF provides financing and policy advice to members faced with economic difficulties. Also, the IMF collaborates with...

What is the Gross Domestic Product of the United States?

When comparing the wealth or living standards of a country with those of another country over a given period, economists normally utilize the Gross Domestic Product (GDP). GDP is a tool used to evaluate the value of goods and services produced in a given country. Economists have used the GDP...

What does sales ethics mean? Why is it important?

Sales ethics are the virtues that salespeople should uphold when carrying out their responsibilities. These are codes of conduct that sales professionals must abide by to ensure that they are fair and diligent to the customers they transact business with. Sales professionals must comply with the codes of conduct established...

How businesses can use the Internet to establish effective customer relationships?

The internet offers valuable ways through which a firm can keep in contact with its customers. The internet makes a customer aware of the activities a firm undertakes, which stimulates interest in the mind of a prospective customer. Berndt and Brink (2004, p.106) reveal that the internet enables a firm...

How firms should handle customer complaints?

All the customers’ complaints regarding the quality of service that is offered by sales staff should be taken very seriously. Firms need channels through which customers can send their complaints regarding the quality of service that is offered to them by their sales staff. Customers’ feedback regarding the way their...

In which situation would a savings account be the best investment to earn interest? a) saving for retirement in twenty years b) saving to buy a new car in three years c) saving to buy a new house in seven years d) saving in July to buy holiday gifts in a few months

Saving to buy a new house in seven years would be the best savings account investment to earn interest. Explanation: A savings account is one that pays interest but cannot be directly used for purchases or other exchanges. As such, when deciding to create such an account for some purpose,...

What does the concept of scarcity explain? Check all that apply. A) why a product could lose significant value over time. B) why people continue to purchase different products. C) why consumers are willing to pay high prices for items. D) why decisions must be made on how to use resources E) why resources can be both renewable and nonrenewable. F) why a single resource has more value than another resource.

C (why consumers are willing to pay high prices for items), D (why decisions must be made on how to use resources), and F (why a single resource has more value than another resource) are the correct answers to the question. Explanation: Scarcity is an economic concept that indicates that...

Though it is seen as a last resort, bankruptcy allows a consumer to A) temporarily stop paying debts. B) eliminate certain types of debt. C) easily reestablish good credit. D) receive credit in an emergency.

Option B is the correct answer because filing for bankruptcy absolves a person of repaying some kinds of debt, for example, personal loans or credit card charges. Explanation: The definition of a bankruptcy is the official and legal declaration of an inability to pay back any debts, notifying all current...

Why is the slow growth that can result from a contractionary policy a positive effect? A) It can increase interest rates. B) It can decrease available credit. C) It can increase the money supply. D) It can decrease inflation.

The correct answer is D (it can decrease inflation) as the central goal of all contractionary policies is reducing inflation. Explanation: While contractionary fiscal and contractionary monetary policies can increase interest rates (answer A) and decrease available credit (answer B), these are tools used to achieve a higher goal, rather...

How does a socialist government with a command economy manage its economy? A) The government lets producers set wages for workers. B) The government owns all homes and other forms of housing. C) The government allows consumers to make their own choices. D) The government controls factories and other forms of production.

The government controls factories and other forms of production (answer D) is correct since government control over the means of production is essential to the definition of a centrally planned economy. Explanation: Socialism, communism, and all other ideologies, which rely on planned production, gain control of economic cornerstones, such as...

When compared to a mixed-market economy, a command economy typically has A) More private ownership. B) Government control over production. C) Strong consumer-buying power. D) A greater chance for a high income.

Government control over production (answer B) is correct due to the definition of a command economy being an economic system that is centrally planned and guided by the government. Explanation: The characteristics of a planned economy are lessened private ownership and diminished income-driven initiative, which leads to the decrease of...

Which best explains what a credit score represents? A) A number showing how likely you are to have more than one credit card. B) A numerical rating that expresses how likely you are to repay your debts. C) A numerical rating that shows how much money you have in your bank account. D) A number expressing your yearly income.

Of the four answers, B (a numerical rating that expresses how likely you are to repay your debts) is correct because the definition of credit score is a mass of numbers intended to measure a person’s financial trustworthiness. Explanation: The best way to do so is by showing how often...

Based on the lesson, how are individuals and economies similar?

They both are aimed to achieve their goals with minimal waste. Explanation: The scope of economics affects a more noticeable platform than just political entities do. It influences people and organizations, and not only market prices. In capitalism, economies are driven by a desire for growth and profit. This desire...

Which statement best compares the laws of supply and demand? a) The two economic laws exist in theory. They have no relation to economics in the real world. b) The two economic laws exist in theory. They work in practice, but real-world factors can have an effect. c) The two economic laws work in practice. They apply to real-world economics eighty percent of the time. d) The two economic laws work in practice. They prove to be true in the real world one hundred percent of the time.

B. The two economic laws exist in theory. They work in practice, but real world factors can have an effect. Explanation: The law of supply and demand is used to explain interactions between the buyers and the sellers from the perspectives of some resource. This law is illustrated in the...

1. According to the law of supply, price and quantity move a) along a track in the same direction. b) along a track in opposite directions. c) from different points toward one another. d) from the same point away from one another. 2. According to the law of demand, price and quantity move A) along a track in the same direction. B) along a track in opposite directions. C) from different points toward one another. D) from the same point away from one another.

Along a track in the same direction. Explanation: According to the law of supply in economics, if the price of goods increases, the number of goods will also increase and vice versa. The reason for it is that when the price grows, suppliers will try to maximize their profits by...

What types of investments do banks use to make a profit? Check all that apply a) opening checking accounts b) starting new businesses c) buying stocks and bonds d) buying several properties e) issuing loans to all customers g) buying the rights to loans

The types of investments that banks use to make a profit are: a. Buying stocks and bonds. b. Buying several properties. c. Buying the rights to loans. Explanation: Commercial banks are profit-oriented organizations that use diverse ways to gain benefits. The primary source banks can use to make profits is...

One factor that indicates a developed economy’s standard of living is its A) growth in outsourcing rates. B) strong social connections. C) high levels of education. D) low GDP per capita.

C. High levels of education. Explanation: A standard of living can be defined as the level of the population’s comfort, wealth, and the availability of goods and necessities. Standards of living are often used to compare countries or nations; for instance, in China, they may be higher than in Kenya...

On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production.

A currently unattainable production. Explanation: A production possibility curve, or PPC, also known as production possibility frontier or PPF, is the representation of the amounts of goods and services an economy can produce using the given technology and resources. PPC is used to analyze the amount of production that would...

What is prohibited in a command economy? CHECK ALL THAT APPLY. a) the control of prices and income levels b) the rationing of manufactured goods c) the personal ownership of property d) the influence of consumer demand e) the intervention of the government

Correct answer is: the personal ownership of property. Explanation: Command economy can be identified as the system in which the government makes all decisions related to the economy. For instance, the types of produced goods, their volume, and level are under the government’s regulation. The goal of a command economy...

One of the three economic questions deals with deciding a) what goods and services should be produced. b) what the costs of production should be. c) how goods and services will be marketed. d) how consumers will receive products.

The correct answer is 1) what goods and services should be produced. Explanation: In trying to cover the needs of its people, each society needs to answer the three basic economic questions: What should we produce? How should it be produced? And for whom should we produce it? These questions...

The lack of competition within a monopoly means that

The lack of competition within a monopoly means that the monopolists set their own prices. Explanation: A monopoly may emerge in a market where one company, business, or entity is the only dominant force that offers a specific product or service and, hence, meets customers’ demand fully. With time, this...

Which consideration must be addressed when deciding for whom to produce

The correct answer is deciding who needs the goods and services that are about to be produced. Explanation: “For whom should we produce?” is one of the basic questions of economics regardless of the economic system – command, market, or mixed. To understand it better, you should study two concepts...

What are the two steps a producer can take to gain an absolute advantage? 1.Produce more goods. 2.Use high-quality resources. 3.Produce more expensive goods. 4.Use fewer resources. 5.Produce high-quality goods. 6.Use local resources.

The correct answers are 1) produce more goods and 4) use fewer resources. Explanation: In the economic theory, the definition of absolute advantage is the ability to produce as much of a product as possible while using few resources. On the other hand, comparative advantage is something that can help...

A purpose of government regulation in a mixed-market economy is to protect…?

The purpose of government regulation in a mixed-market economy is to protect corporate rights. Explanation: A mixed-market economy is a type of economy where the factors of production are controlled by both the formal authorities and the private market. It is safe to say that each and every of the...

Which of the following will be accomplished by efficient allocations of the factors of production? a) ensuring economic profitability b) understanding whether a product will fail c) fulfilling many needs and wants of society d) replenishment of limited resources

The correct answer is fulfilling many needs and wants of society. Explanation: By definition, a factor of production is any resource that is used to produce a good or service. The economic theory acknowledges the general scarcity of resources and their uneven distribution between countries, regions, and local producers. Thus,...

Which best describes the difference between stocks and bonds? a) Stocks allow investors to share in profits; bonds make investors responsible for company debts. b) Stocks allow investors to own a portion of the company; bonds are loans to the company. c) Stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year. d) Stocks are a more reliable investment; bonds tend to be more volatile.

The correct answer is B. Stocks allow investors to own a portion of the company; bonds are loans to the company. Explanation: The primary difference between stocks and bonds is the relationship between the investor and the company following a purchase. Stock represents shares in a company, which means that...

The primary goal of the consumer financial protection bureau is: a) To monitor your credit report and ensure your identity and other sensitive data has not been compromised b) To protect against abusive or deceptive debt collection purposes c) To protect consumers by regulating financial products and services d) To protect consumers against false advertising and other unfair business practices

The correct answer to this question is B. The primary goal of the consumer financial protection bureau is to protect consumers against abusive or deceptive debt collection purposes. Explanation: This means that the CFPB has jurisdiction over various financial companies, such as banks, credit unions, and debt collectors. Financial regulations...

What does CFO stand for?

The abbreviation CFO stands for Chief Financial Officer, who is an official whose responsibilities include managing financial activities of companies. The financial director also carries out business planning, monitors the movement of finances, analyzes the financial condition of the company, its strengths, and weaknesses in this regard, and makes proposals...

What is the estimated date of confinement?

The estimated date of confinement is the date when a pregnant woman is expected to give birth to a child. Usually, an exact date at which an infant is born is calculated from the time of the last menstrual period of a woman. It is common to give birth between...

What is the contribution income statement?

The contribution income statement is an instrument that demonstrates whether a business has generated some revenue over a particular period of time. In other words, contribution income statements are used to measure the performance of a company by dealing with variable and fixed expenses. Explanation: To begin with, one should...

What is retained earnings normal balance?

A credit is a normal balance in the retained earnings account. If it is so, this fact denotes that a business has managed to generate some profit over its existence. Explanation: Retained earnings, also known as retained capital, stand for the funds that a company possesses after it has dispersed...

What is weighted average contribution margin?

The weighted average contribution margin is an amount calculated to determine project profit levels for different amounts of sales. It presents an average amount that a group of services or products pays for the fixed cost of a business. Explanation: It is important to have an opportunity to calculate how...

What are dividends in arrears?

There are situations in companies where dividend payments cannot be made at the moment, and then it is called dividends in arrears. In such situations, they speak of dividends in arrears, which are dividends overdue by the date of payment. Explanation: When a firm has dividends in arrears, it means...

Define the degree of financial leverage.

The degree of financial leverage (DFL) is the coefficient by which a proportional change in net income and fluctuations in operating income of a company due to changes in the capital structure of business are calculated. This degree is used to estimate the amount of debt to be paid. Thus,...

What are marketing intermediaries?

Marketing intermediaries are independent companies that help other corporations in the promotion, marketing, and distribution of their products to the consumers. These include distributors, product brokers (agents), marketing agencies, logistics firms, and financial institutions. Some types of marketing intermediaries are given down below. Explanation: Intermediaries, such as distributors, are wholesale...

What is average accounts receivable?

Average accounts receivables are the average amount of trade receivables on hand during a reporting period. Average accounts receivable formula is found by adding extra data points of Accounts receivable (AR) balance and dividing by the number of all data points. Explanation: This term is closely tied to Accounts Receivable...

Explain the concept of bonds payable. What is their importance?

A bond payable is a debt paper, according to which an issuer must return to the investor the value containing the face amount, par amount, or maturity amount of the bond and the percentage for using the funds (interest) within the agreed period. This account typically appears within the long-term...

What is the VALS framework?

There are many classifications of the target audience, and it is best to select them individually for each specific situation. VALS is a system developed in 1978 by SRI International. A person’s way of life reflects his or her world view, it depends on principles and inner beliefs. The name...

Give the selective incorporation definition.

Selective incorporation is used in order to ensure the observance of constitutional rights in state laws in the United States. Explanation: In the process of creating the U. S. Constitution, there was no restriction of federal powers, and to fix that, the Bill of Rights was designed. However, the Bill...

Which investment type typically carries the least risk?

Any investment transaction, whether it is a passive or an active exchange operation, carries elements of risk. The main proportion of investment theory is that potential return is inversely proportional to the level of risk. Explanation: The risk increases due to the lack of predictable fixed returns, but potential profits...

What is the marginal rate of technical substitution?

The marginal rate of technical substitution is the amount of capital that the manufacturer should refuse to use with an increase in labor costs per unit when old and new resources provide the same output. Explanation: The marginal rate of technical substitution (MRTS) shows the ratio of a change in...