Answer:
Option B. It is unrealistic
Explanation:
The reason is that the people have different likes which means we will never see 100 percent acceptance from the customers which might in the way of rejecting the offer of Gary. So the assumption that 50,000 cab drivers will purchase its product is truly optimistic which in other words is unrealistic assumption. So the option B is correct.
Option A is incorrect because the assumption is less qualitative as it doesn't relies on realistic assumption.
The cab drivers sales are relevant here but the sales assumption was unrealistic (Highly optimistic assumption) so the option C and D are incorrect.
Option E is also incorrect because the sales to cab drivers can be measure by initially directly selling 1000 cell phone to 1000 cab drivers which will give an actual idea of sales units expected, which means it is measurable.
Answer: Option (B)
Explanation:
Fiat money is referred to as the currency which tends to have no intrinsic value and thus has been further entrenched as money. This process is often carried out by the federal government. This particular type of money does not tend to have the use of value, and only has the value since the authority i.e. the government tends to maintains its value.
Answer: a. more customers opting for the product
Explanation: It is important for a companies and businesses to ensure that in addition to the product they deal in itself, there is an adequate supply of complements. Complements to a product are products whose use is related to the use of an associated product, as such, its appeal increases with increasing use or popularity of its complement. An adequate supply of complements to a product results in more customers opting for the product.
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.
<u>Explanation</u>:
Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:
- failing to integrate acquisitions
- unable to understand how the acquired organization’s assets would fit with their own lines of business
- paying high premium for the target's common stock
- not acting in best interest of shareholders
The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.
Answer:
Correct option is (a)
Explanation:
Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.
Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.
