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3 years ago

Why is it important for businesses to their heavy users?

Business

1 answer:

Dovator [93]3 years ago

8 0

Answer:

The Heavy users of a business are those people who comprise about 20% of the business's consumers and yet buy so much that they bring in about 80% of the business's revenue.

Heavy users also have an impact on light users because they can market the goods to light users whether indirectly or directly when they use so much of a business's goods and services.

It is therefore very important that the business knows of these heavy users so that they can focus marketing strategies on them as well as to offer them incentives that will keep them satisfied and coming back for more because if they don't act and they lose their heavy users, their revenues will see a significant drop.

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How has Groupon effectively used personal selling, advertising, and public relations to market its products?

Rainbow [258]

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3 years ago

True or False? In order for a SWOT analysis to be successful, it is critical to focus on business processes that met customer ne

romanna [79]

Answer: True.

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3 years ago

On January 1, Sharp Company purchased $50,000 of Sox Company 6% bonds, at a time when the market rate was 5%. The bonds mature o

lana [24]

The journal entries to record the transactions for Sharp Company are as follows:

a) January 1, 2020:

Debit Bonds Receivable $50,000

Debit Bonds Premium $2,165

Credit Cash $52,165

To record the purchase of the debt investment.

b) December 31, 2020:

Debit Cash $3,000

Credit Interest Revenue $2,608

Credit Bonds Premium Amortization $392

To record the receipt of interest.

c) December 31, 2020:

Debit Fair Value Loss $1,000

Credit Bonds Receivable $1,000

To adjust the investment to fair value.

<h3>What is a bond's premium?</h3>

The bonds premium, in this case, refers to the excess cash that Sharp Company paid for the purchase of the bonds when the effective market rate is 5% with a coupon rate of 6%.

The implication is that Sharp Company paid more for the bonds than the market value.

<h3>Data and Calculations:</h3>

Purchase of Sox Bonds = $50,000

PV = $52,165

Premium on bonds = $2,165

Interest rate = 6%

Market rate = 5%

Maturity period = 5 years

Interest payment = annually on December 31

<h3>Transaction Analysis:</h3>

a) January 1, 2020: Bonds Receivable $50,000 Bonds Premium $2,165 Cash $52,165

b) December 31, 2020: Cash $3,000 Interest Revenue $2,608 Bonds Premium Amortization $392

c) December 31, 2020: Fair Value Adjustment $1,000 Bonds Receivable $1,000

Learn more about the amortization of bonds premium at brainly.com/question/25652725

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2 years ago

Jill is a cash basis attorney. This year, she performed services in connection with the formation of a corporation and received

Semmy [17]

Answer:

a) true

Explanation:

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But she continue to hold the stock and record $4,000 of the gross income from the stock

So at the time of income receipt, the realizable value is $4,000

Therefore the given statement is true

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