Answer:that should be based on your class and teacher try checking your syllabus
Explanation:
The real interest rate is simply nominal interest rate
less the inflation rate. In equation form this is equivalent to:
Real interest rate = Nominal rate – Inflation Rate
Real interest rate = 9% - 4%
Real interest rate = 5%
<span> </span>
Return on Investment = 83% or 0.83
total Profit = 75000
term = 6 yrs
annual profit = 75000 / 6 = 12500
initial investment = 15000
ROI = Net Profit / Total Asset
= 12500 / 15000
= 0.83 or 83% (0.83 x 100%)
Answer:
B. A strategic action because such a large plant expansion will require a major commitment of resources.
Explanation:
There are two major forms of action in business decision making: strategic and tactical. Strategic action deals with decision that require major planning and investment of resource. Strategic actions have long term implementation and effect and are difficult to reverse.
Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.
On this note, Circus Aircraft`s decision to double its plant capacity over the next two years is a strategic action because such a large plant expansion will require a major commitment of resources. And the action will not easily reversible.
Other options in the question are not totally right.
Without new products, Erik can market his current products only to his current market the same products to similar customers
<h3><u>
Explanation:</u></h3>
New product development involves a lot of research work. This plays a vital role in making the newly developed product to be more successful. The research team must first identify the areas that can be improved with the requirements and feedback from their loyal customers.
But in the given example, Erick’s company is already successful with the developed product for more than five years. Hence, it is recommended for marketing the current products to the current customers and market the same products to similar customers.
