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sladkih [1.3K]
3 years ago
5

New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a la

rge market share because___________.
a. Beyond a certain level of spending, diminishing returns set in.
b. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits.
c. Advertising is utilized for maintaining brand awareness and market share.
Business
1 answer:
mestny [16]3 years ago
3 0

Answer:

b. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits

Explanation:

New brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share because a certain minimum level of exposure is needed to measurably affect purchase habits.

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Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for a covenant not to compete.
Iteru [2.4K]

Answer: Option (B)

Explanation:

Condition subsequent clause is referred to as an exit clause from the existing contract. This agreement in between the parties tends to include languages that loosens or frees one of individuals from the agreement or the deal. This tends to mostly occur when the conditional outcome or result takes place. The conditional subsequent relieves an individual or a party from all the obligations.

4 0
3 years ago
Which one of the following statements is TRUE? a. Company sponsorship of a local charity is an example of a nonpecuniary benefit
mojhsa [17]

Answer: c. An inside director is a board member who also holds a managerial position in the company

Explanation:

Inside Directors are indeed Board members who are employees/ hold managerial positions in the company.

They are in a unique position to help the board in Corporate Governance because as they are on the ground, they have specialized knowledge of the company and as such can provide complete information to the Board.

They typically include a Company's top executives such as the CEO, CFO and the COO.

5 0
3 years ago
Consider the multi-factor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are respectively 5% an
Llana [10]

Answer:

Option (B) 5.5%

Explanation:

Data provided in the question :

Factor             Risk premium

Factor 1               5%

Factor 2              3%

Beta of stock A on factor 1 = 1.4

Beta of stock A on factor 2 = 0.5

Expected return = 14%

Now,

Expected return

= Risk free rate + (Beta of factor 1 × Risk premium of factor 1) + (Beta of factor 2 × Risk premium of factor 2)

or

14% = Risk free rate + (1.4 × 5%) + (0.5 × 3%)

or

14% = Risk free rate + ( 7% + 1.5% )

or

Risk free rate = 5.5%

Hence,

Option (B) 5.5%

6 0
3 years ago
AK Inc. is paying 5% coupon rate for its bondholders over the next 8 years. Your required rate of return is 7 percent, how much
ratelena [41]

Answer: $880.57

Explanation:

Assuming Par value of bond is $1,000.

Value of bond = (Coupon * Present value interest factor of annuity, no. years, required return) + Par Value/ (1 + required return)^ no. of years

Coupon = 5% * 1,000 = $50

Value of bond = (50 * 5.9713) + 1,000 / (1 + 7%)⁸

= ‭298.565‬ + 582

= $880.57

6 0
3 years ago
Why might one firm have positive cash flows and be headed for financial trouble?
Katena32 [7]
A cash flow statement merely describes the net change in a company's cash flow in investment, operational, and financial activities at a given period in time. As such, a bad debt in the company's portfolio cannot be reflected correctly in the cash flow statement. A company can also result to selling products at a much lower prices than it purchased them. While this is reflected in the cash flow statement, it does not translate into overall profitability of the concerned company.
6 0
3 years ago
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