Answer:
d) Organizational culture
Explanation:
Organization culture is the assumptions, beliefs, values, and ways of interactions that make an organization unique. It the organization's established ways of doing things.
Organization culture will include experiences, expectations, and philosophies that guide its members. Members of an organization express culture by the way they interact internally and with the outside world. Culture incorporates customs, attitudes, written and unwritten rules of an organization.
The answer is C. Direct costs.
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Answer:
<u><em>The corrects answer is:</em></u> A toothpaste manufacturer adds a new line of toothpaste (that contains baking soda) to its product line.
Explanation:
Cannibalization is a market strategy that can occur without the company's intention, and can be defined as when a company replaces a product on the market with a similar new product, as in the example above, when a toothpaste manufacturer adds a new one line of toothpaste (containing sodium bicarbonate) to its product line.
This strategy can be detrimental to the company, since there may be less sales of an existing product for a similar product, which consequently generated higher production costs for the organization, therefore it would not be characterized as gains for the company, but as losses , as this strategy would not increase the company's market share, but a detriment of one product by another.
Therefore, it is necessary that there is constant monitoring of each product in the company so that cannibalization does not occur and each product contributes to the company's profitability individually.
Maximize shareholder value.
Answer:
2.83%
Explanation:
P0 = $6,700,000
Cost of equity Ke = 8%
So, value of this perpetuity 6 years form now is P6 = P0*(1+Ke)^6
= $6,700,000*(1.08)^6
= $6,700,000*1.58687432294
= $10632057.96
Free cash flow at year 7 (FCF7) = $550,000
So, using constant growth model, g = Ke - FCF7 / P6
g = 0.08 - 550000/10632057.96
g = 0.08 - 0.05173034
g = 0.02826966
g = 2.83%
Thus, the growth rate required for the continuation value (terminal value perpetuity) term is 2.83%.
