When a company expands by entering a new business area, it is called growth through diversification.
Diversity is the means of being different, new, exciting.. something not like another. When a business enters something new, it's called diversification because it's not like what they've done before. With this comes risk but huge growth potential.
Answer:
Return on equity = 13.5 %
Explanation:
given data
tax burden ratio = 0.75
interest burden = 0.6
leverage ratio = 1.25
return on sales = 10%
sales assets = $2.40
to find out
What is the firm's ROE
solution
we get here Return on equity (ROE) that is express as
Return on equity = tax burden ratio ×leverage ratio × interest burden ratio × return on sale × sales .......................1
put here value we get
Return on equity = 0.75 × 1.25 × 0.6 × 10% × 2.40
Return on equity = 0.75 × 1.25 × 0.6 × 0.10 × 2.40
Return on equity = 0.135
Return on equity = 13.5 %
Answer:
The price elasticity of demand is -3.7
Explanation:
Price Elasticity of demand measure the responsiveness of demand against the change in price of the product.
Simple percentage method calculate the price elasticity by taking ratio of percentage change in Demand to percentage change in price of the product.
Percentage change in Demand = ( Revised demand - Initial demand ) / Initial demand
Percentage change in Demand = ( 182 riders - 472 riders ) / 472 riders = -0.6144 = -61.44%
Percentage change in Price = ( Revised Price - Initial Price ) / Initial Price
Percentage change in Price = ( $0.78 - $0.67 ) / $0.67 = 0.1642 = 16.42%
Price Elasticity = Percentage change in Demand / Percentage change in price
Price Elasticity = -61.44% / 16.42% = -3.74 = -3.7
Answer:
The correct answer is "b) counteroffer"
Explanation:
In other words, a counteroffer is an "offer made in response to another"
For Don´s case, if the employers don´t make a counteroffer, Don would leave the company (for the benefits that the rival is offered). If you were a manager, and you appreciate his work, the right decision is "Don's employers decided to make him a counteroffer matching the offer from their rival firm ".
