Answer:
B. Capital budgeting is the process of planning and managing a firm's short-term investments
Explanation:
Capital budgeting is the process a business undertakes to evaluate potential major projects or investments
Answer:
Borrowing on a long-term is better.
Explanation:
During recession, sales and revenue declines due to the decrease in consumers' spending and low economic activity, profit and cash flow drops, interest rates are low and unemployment rises.
Borrowing on a long-term is better during recession better recession is not static. According to the phases of business cycle, after recession (contraction), we have trough, then expansion and peak period. And this business cycle vary from more than one year to 10 or 12 years.
Long-term loan also varies from more than one year to 15 years or more. So by the time the economy recovers from recession, paying interest on the debt will not be a problem.
Short-term loan is usually within a year. Going for this is discouraged because during recession, sales decrease, cash flow drops. So paying interest and the principal on this loan will be extremely difficult, thereby, exposing the company to liquidation. The company becomes a going concern.
Answer:
Richard is trying to understand if his product or service is substitutable.
Explanation:
According to the resource based theory, businesses gain competitive advantages over other businesses in the industry based on the strength of their resources.
For competitive advantage to be sustainable however, such resources must be rare, and not easily imitated or substituted.
Richard is carrying out research on his competitors to find out what they have to offer, to know if his product can be easily substituted or replaced.
Answer:
all of the above
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable. This ensures that shareholder wealth is maximised
The NPV method uses discounted cash flows. so the time value of money is considered
Answer:
<em>b.niche marketing.
</em>
Explanation:
Niche advertising is a marketing technique used to target a particular, specific market segment.
Niche market is very often generated by knowing what a consumer wants, and it can be achieved if the company knows whatever the consumer wants and then aims to provide an unique solution to the issue that other businesses have not provided.