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Olenka [21]
3 years ago
10

Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial y

ear.
As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year."

In this case, which method of promotional budgeting does Sam use?


A) the objective-and-task method
B) the competitive-parity method
C) the percentage-of-sales method
D) the affordable method
E) the pull-push method
Business
1 answer:
8090 [49]3 years ago
5 0

Answer:

The answer is, The competitive-parity method.

Explanation:

Promotional Budgeting is the process of estimating the expenses for a particular promotional project that is yet to be launched.

The competitive-parity method, primarily assumes that  the other firms have the same marketing objectives and know what they are doing. Based on this, the Advertising-expense budgeting method is decided under the basis of what a brand's or firm's competitors are estimated to be spending.

The other several popular ways to do this are,

  1. Percentage Method: a percentage of sales are taken to budget the costs
  2. Goal-and-Task Method: First you define a task, then you estimate the costs related
  3. Zero Method: This method emphasizes on keeping the promotional costs near to 0!
  4. the affordable method/What’s-in-my-Wallet Method: A method where company only spends what they can afford, often this is utilized by small businesses
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A feasibility study is aimed primarily at __________.
swat32

Answer:

accessing the viability of a business

Explanation:

Feasibility study is an evaluation that is carried out on a proposed business venture in order to ascertain the viability of the business.   feasibility study helps to understand the positive and negative effects of the proposed business and prepare ones mind against any future risks that might want to arise. The feasibility study is aimed primarily at accessing the viability of a business

8 0
3 years ago
Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ×120 = $1, and the New York yen/dollar exchange rate a
Viefleur [7K]

Answer:

This question lacks answers

A. currency swap.

B. arbitrage.

C. backwardation.

D. straddle.

<u>The answer is </u><u>b.</u>

Explanation:

Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.

The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).

In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)

8 0
3 years ago
_____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.
azamat

Answer:

C) Business marketing

Explanation:

There are two major types of business transactions: business to business (B2B) and business to consumers (B2C).

When a company engages in B2B transactions, they are selling their products or services to another business or individual that will resell them to individual consumers. For example, Nike sells shoes to Foot Locker, and then Foot Locker resells them to final consumers.

Businesses engaged in B2B transactions use specific marketing strategies aimed at their wholesale clients which usually vary from marketing strategies aimed at final consumers, e.g. offer discounts for buying in bulk.

3 0
3 years ago
Read 2 more answers
If the money supply is​ $500 and nominal income is​ $3,000, the velocity of money is A. ​1/60. B. ​1/6. C. 6. D. 60.
algol [13]

Answer:

The correct option is c.6

Explanation:

For computing the velocity of money, the following formula should be used which is shown below:

The Velocity of money = Nominal income ÷ money supply

where,

Nominal income is $3,000

and, the money supply is $500

Now put these values to the above formula so that we can find out the answer

So, the answer would be equal to

= $3,000 ÷ $500

= 6

Thus, the velocity of money is 6

Hence, the correct option is c.6

5 0
3 years ago
Your local toy store just announced that it will pay a $4 dividend next year, $3 the following year, and then a final liquidatin
topjm [15]

Answer:

It would sell for 761.49 dollars

Explanation:

Generally, stock prices are determined on stock market based on supply and demand mechanism. However, according to the discount dividend model present value of stock could be calculated as dividend per share/(cost of capital equity-growth rate). Growth rate between year 1 and 2 is 3-4/4 equals to -0.25%. From year 2 until year 3 it is 46-3/3 equals to 14.33%. Now we can take arithmetic average of these two and we get 7.04%( 14.33-0.25/2). Finally share could sell today for 46+3+4/(14-7.04%) equals to 761.49 dollars

8 0
2 years ago
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