Answer:
The correct answer is letter "A": Only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
Explanation:
Porter's Five Forces is a study scheme named after Harvard Professor Michael E. Porter (born 1947). It helps managers assess competition within the industry.
- <em>The first force analyzes the ease of marketplace entry for new participants.
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- <em>The second factor measures the number and operation of a company's rivals.
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- <em>The third element is the likelihood of a new good or service entering the market that will diminish the sales of existing goods.
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- <em>The four-factor is that industry suppliers have negotiating power.
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- <em>The fifth factor is the bargaining power of customers.
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<em>When the suppliers' bargaining power is higher, there are possibly a few of them in the market. The situation gets worse for manufacturers when switching from one supplier to another represents higher costs or when making the change to substitutes carries a high cost as well.</em>
In a 2 for 1 stock split, par
value and market value will be 1/2 of what they were prior to the split and
number of shares will be two times what it was.
So,
par value will be 6 x 0.5 = $
3.00
market value will be 25 x 0.5
= $ 12.50
number of shares 8,000 x 2 will be
16,000 shares
Answer:
See explaination for the details of the answer.
Explanation:
1) Increase
As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.
2) Decrease
Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.
3) Decrease
A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.
4) Decrease
A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.
Answer:
B. Price promotion
Explanation:
Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.
Price promotion is the combination of two words "price" and "promotion".
Price refers to the amount of money paid by consumers to purchase goods and services.
Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.
Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.
