Answer:
The correct answer is letter "D": The higher the expected rate of return, the wider the distribution of returns.
Explanation:
The rate of return (RoR) is the earnings an asset generates in excess of its initial cost. The amount is usually expressed as an annualized percentage rate. The RoR estimates grow between two given periods. The spread of the returns directly depends on how high those returns are: the higher, the wider distribution and vice versa.
Multiple Choice
A. The hair salons will be forced to move to a less demanding neighborhood.
B. The hair salons will be taken over by competitors in the area.
C. The hair salons will stay in business, and customers will adapt to their services and products.
D. The hair salons will be converted into a different type of business that can succeed in this area.
E. The hair salons will go out of business.
Answer:
Option B. The hair salons will be taken over by competitors in area.
Explanation:
The reason is that when the quality of the product that the seller promised is not delivered the customer satisfaction level drops significantly and thus moves towards the other seller which results in the loss of the customer. So this means if the business is not delivering the desired quality then it will keep loosing business customers because the competitor will take over the lost business.
Answer: Franchising
Explanation:
Franchising is one of the type of marketing based method that helps in defining the various types of business strategy by implementing the intellectual properties and also the business structure.
It is basically refers to the licence that is obtained for the purpose of accessing the other business for selling the products with the name of same brand.
According to the given question, the luxere hotels is one of american based company that selling the products to other hotels by using their specific name of the brand.
Therefore, Franchising is the correct answer.
Answer:
Business markets refer to organizations, businesses, or entities that acquire products and services for use in the production of other services and products. On the other hand, consumer markets refer to markets where producers sell their products or services directly to the final consumers.
Explanation: