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s2008m [1.1K]
3 years ago
6

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly

in the industry.
a. product line reeling

b. product line classification

c. product line extension

d. product line contraction
Business
1 answer:
Harman [31]3 years ago
7 0

C. Product line extension.

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Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
algol13

Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

Expected return on the market portfolio, E(r_m) = 12 %

Standard deviation on the market portfolio, σ_p = 20%

Risk-free rate, r_f = 5%

E(r_c) =  r_f + [  E(r_p)  - r_f ] × ( σ_c ÷ σ_p)

         = 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

= 8.5%

5 0
3 years ago
Selling similar merchandise at a price above the competition is done with the hope of selling greater quantities of the merchand
irina [24]

Answer:

False

Explanation:

In order to attract more customers to your store and sell larger quantitative, you must sell at a price below the competition, not above.

Rational customers should purchase at the lowest possible price, that is the basic concept behind the law of supply and demand. A lower price should result in a higher quantity demanded.  

3 0
3 years ago
David ungar holds a dunkin' donuts franchise. The terms of his franchise agreement require him to use only those ingredients fur
Andrej [43]

In a franchise, the franchisor allows the franchisee to  trade under its name and see its products for a fee  The franchisee pays an original fee to franchisor and a percentage of its profit for the privilege.So,since, Dunkin' Doughnuts is sharing its' brand name and image with David Ungar(his franchisee) it would definately want to improve it...at the least maintain it...David too is right on the other hand as there can be a possibility that he wants to use ingredients of a much higher quality than that provided.But dunkin' doughnuts can't still allow to do that as it has other franchisees to look after.Imagine that=>all the franchisees of dunkin' doughnuts use different ingredients with different quality..wouldn't this affects the image of the franchisor...also all the food items they sell will have a different taste depending on the ingredients.And if one of the franchisee buys cheap ingredients... thereby producing low quality out put ..the customers will not be satisfied...this will not only affect that franchisee but also the Brand image of the whole business worldwide.

To conclude,David may not be wrong with his idea but since dunkin' doughnuts is a big business with a good brand image...it has its' terms and requirements.

5 0
3 years ago
As the price level declines along the aggregate demand curve, the interest rate is most likely to:___________.
lbvjy [14]

Answer:

a. Decline

Explanation:

Whenever there is a reduction in the price level, this results in gains in the real money supply which eventually moves the LM curve to the right.

Hence, given that, the IS curve has a downward slope, the IS and LM curves will meet at a higher level of income and a lower interest rate.

Therefore, the correct answer, in this case, is Option A: DECLINE

Note LM means Liquidity and Money

While IS means Investment and Savings.

3 0
3 years ago
An investor is considering investing in a stock they plan to hold for 2 years. The stock is expected to pay dividends of $1.50 p
xz_007 [3.2K]

Answer: $19.82

Explanation:

The price the investor would be willing to pay today would be the present value of the dividends and the selling price at the end of 2 years using the required return as the discount rate.

= 1.50 / (1 + 8%)  + 1.50 / (1 + 8%)²   + 20 / (1 + 8%)²

= 1.3888889 + 1.286 + 17.1467764

= $19.82

3 0
3 years ago
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