Answer:
generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, funding share buyback programs, and/or paying dividends.
Explanation:
In Economics, a cash cow business produces large internal cash flows over and above what is needed to build and maintain the business. On the other hand, the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements.
Hence, a cash cow type of business generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, funding share buyback programs, and/or paying dividends. Some examples of cash cow businesses are coca-cola, kellogg's corn flakes, Apple's iPhone, Microsoft Windows, Ford trucks, etc.
Answer:
A. Bottom of the pyramid
Explanation:
"Bottom of the pyramid" strategy is applied by a corporate to the economically weaker and poorer sections of the society, aimed at promoting economic development and at the same time earning profits.
The pyramid here represents the population of a country segregated w.r.t wealth. As we move from bottom to top, the wealth possession increases. So bottom of such a pyramid represents the poorest section.
Th model employed for such a strategy includes, high sales quantity, low profit margin offering products at a low price. Herein, a corporate offers it's products to the weaker sections, at very cheap prices, with little profit margin so as to achieve twin objectives of economic growth and profitability.
The given case corresponds to such a strategy wherein a company decided to offer laptops in foreign markets, with an aim of making it available and affordable for poor people, by offering such products at very low prices. The company has employed "Bottom of the pyramid" strategy.
Answer:
look it up to find out what it is
Explanation:
look it up
Answer:
The correct answer is letter "E": Demographics.
Explanation:
Demographics is the study and categorization of people based on factors such as <em>income level, education, gender, race, age, </em>and <em>employment</em>. In business, demographics are important because they help a company better target the market for its products and, thus, better utilize its marketing expenditures.
Answer:
Total PV= $59.31
Explanation:
Giving the following information:
Cash flows:
Cf1= $3.17
Cf2= $3.64
Cf3= 4.11 + 67= $71.11
Discount rate= 10%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= Cf / (1+i)^n
PV1= 3.17/1.1= 2.88
PV2=3.64/1.1^2= 3
PV3= 71.11/1.1^3= 53.43
Total PV= $59.31