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.
Answer:
inflation
Explanation:
The real interest rate charged on a loan = nominal interest rate - inflation rate
The inflation rate is the change in the general level of prices, and as the inflation rate increases, the purchasing power of the currency decreases. For example, if you purchase 50 cans of Coke with $50 this year, and the inflation rate is 10%, you will only be able to purchase only 45 cans next year with the same $50.
Answer:
Penetration pricing is a pricing strategy where a company charges less than its competitors in order to entice its competitors' customers to patronise them instead.
Competitive pricing on the other hand will see a company charging the same price as its competitors.
Benefits of using Penetration pricing over Competitive
- Reduce competition - If the company engaging in penetration pricing is large enough with more influence in the market, charging less than competitors might lead to competitors leaving the market as the prices will be too meagre for them to cover costs.
- Market Dominance - using penetration pricing can lead to customers moving from the competitors to the company using penetration pricing thereby giving that company market dominance.
- Economies of scale - Penetration pricing allows the company to sell more quantity of its product which means that it will have to produce more and this will reduce average costs for the company.
Risks involved
- Price War - There is a risk of a price war if a company uses penetration pricing. A price war happens when a company reduces its prices and their competitors react by reducing their own prices as well. It might led to a situation where this continues until all the companies are making significant losses.
- Brand Image damage - Cheaper products are usually perceived as having lower quality. Reducing prices might see customers believing instead that the brand is poor and so they may avoid it.
- Attracts low loyalty - The customers gained through this strategies most often have little brand loyalty and when a better deal comes than the one they are being offered in that moment, they will leave.
An addition on the book side would this information be included on the bank reconciliation.
Explanation:
A bank reconciliation is the method of comparing a cash account with the same details on a bank report on the assets of an individual. The aim of this step is to assess the gaps between the two and to make some adjustments to the accounts. The financial statement details is the bank's database of all transactions in the last month involving the company's bank account.
The key method for a bank reconciliation is to continue at the conclusion of the bank's cash balance, to offset any transfer transfers from the business to the bank, to delete any checks not approved from the bank and to add or subtract all other things.
Answer:
usually, a useful consideration that is needed to aid a contract may be either a loss to the promisee or a benefit to the promisor. The loss to the promisee usually may come in form of his own doing by involvement in illegal dealings. Douros did what or was involved in what he was not expected to do legally by revealing the location of the property and the owner's name. This leads legal consideration and also the courts will hardly take a peep/ look at the adequacy of the consideration.
Explanation: