Answer:
The correct answer is letter "D": brand equity.
Explanation:
Brand equity is the value a company gains from its name recognition. To ensure customer loyalty the brand equity so valuable, companies must consistently produce quality products. This creates loyal customers who are willing to pay more for a preferred brand.
Simple answer is efficiency.
More output can be produced if labour specialised and focused on a particular activity.
One due to the time saved from switching tasks and secondly getting better (and faster) at what they do.
This leads to two outcomes.
1. Lower average costs of production
2. Greater output.
Answer:
Risk and Return
1. Joe is an average investor. His financial advisor gave him options of investing in stock A, with a σ of 12%, and stock B, with a σ of 9%. Both stocks have the same expected return of 16%. Joe can pick only one stock and decides to invest in stock B.
Good Financial Decision?
Yes
No
2. Marcie works for an educational technology firm that recently launched its employee stock option plan (ESOP). Marcie allocated all her investments in the ESOP.
Good Financial Decision?
Yes
No
3. rin wants to invest in a hedge fund that has had a very strong performance track record. The hedge fund has given its investors a return of over 60% for the past five years. Although Erin is tempted to put her money in the fund, she decides to conduct due diligence on the hedge fund’s assets, because she is aware that past performance is no guarantee of future results.
Good Financial Decision?
Yes
No
Explanation:
1. Joe's decision to invest in stock B is a good financial decision. Since both investments have the same returns, the decision on which investment to take shifts to the standard deviation of the returns, which specifies the variability of the returns. Invariably, the investment with less standard deviation should win the vote. Therefore, Joe's decision is a good financial decision because investment in B has a standard deviation of 9% unlike A's 12%.
2. Putting all eggs in one market as Marcie had done by allocating all her investments in the ESOP is not a good financial decision, theoretically. It is always best to spread the risks, though higher-yielding investments (returns) bear higher risks.
3. The decision of Erin to conduct due diligence on the hedge fund's assets, despite its past performance is a good financial decision. Due diligence reveals some behind-the-scene information that are instrumental in making sound business decisions. Who are the present managers of the fund? What systems are in place in the entity to guarantee similar future performance, all things being equal? What market's sentiments and information are available for consideration? These questions, and many others can be answered through a due diligence. Surely, "past performance is no guarantee of future results."
Answer:
Pay
Explanation:
Auto liability insurance helps offset the costs of bodily injuries and property damages to the other driver. The principle applies if you are the one at fault in the of an accident.
Auto liability insurance coverage is mandatory by law. It covers the medical expenses of the other party. In some circumstances, it may cover lost wages and legal fees in case the other party files a lawsuit. It also covers the repair or replacement cost of the other drivers' car.
When starting a small business it is very important to remember to take into account your employees point-of- view
