Fatima wants to purchase a house and has been viewing residential properties for the past two months. She has been searching for
information on the Internet and consulting friends and family in order to arrive at a satisfactory decision. Which of the following decision-making approaches is Fatimah employing? A. The extended decision-making approach.
B. The limited decision-making approach.
C. The routine decision-making approach.
D. The habitual decision-making approach.
An extended decision making approach is generally taken when a person wants to purchase a very high cost product that he/she usually doesn't purchase very often. The term high cost is relative to each individual, for some purchasing a $100,000 car is something usual but other people really think a lot before purchasing a $20,000 car.
In this case, Fatima wants to buy a house and that represents the single most important investment for the vast majority of the population. It really is a great deal for Fatima and that is why is looking for all the possible help and advice she can get. She asks her friends about their opinion and looks for information in the internet, because purchasing a house is not something you do everyday, and it will change her life for a long time.
Extended Decision-Making is defined as a <em>decision that involves high participation of the consumers in order to decide to purchase or not a product, it usually revolves around expensive purchases.</em> We can see this exemplified when Fatima consults with friends and family before making her decision to buy a house, an expensive purchase.
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Related diversification is a business strategy in which a business enter a new industry which has some similarities with a company's existing business industry. The highest economic benefit will be achieved by a business if it enters into related diversification strategy.
<h2>In this case,the answer would be option D. or It can be a source of competitive advantage for a period of time.</h2>
Explanation:
In Production Economics,any organizational input in the production process can provide competitive advantage to any firm or company for a sustainable period of time only if it provides commercial or economic value to the firm or company,it is unique and it cannot be completely imitable or substituted through other equivalent resource/s by other market competitors.
Therefore,if any organization resource or input is easily imitated then it cannot ensure long term or sustainable competitive advantage for any firm or company in the market.
However,it can provide some temporary market advantage or competitive edge to any particular firm or company until the time it is fully imitated and implemented by its competitors or rivals.
Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.
While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.
