Jenna puts $100 in a savings account in 2016 and sees a 3% increase in her account without depositing additional money is an example of earning interest.
The interest rate that investment is earning for you is known as earned interest. For instance, if you invest $1,000 in an investment that yields 10% annually, your interest earnings for that year will be 10%, or $100.
A sum that a business receives from interest-bearing bank accounts or other investments. In the accounting period in which the interest is earned, the sum should be recorded as Interest Revenues, Interest Income, or Investment Revenues.
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Answer:Bull's objective was to create BUZZsurrounding its product.
Explanation:To create Buzz around a product is to get people talking about your brand or service in a positive way . This makes them engage and very curious to know more about your services or brand.
For example Red bull got people emotionally and personally involved with Thier brands by providing free samples of its skateboards, thereby creating a buzz about Thier brand.
This indirectly or directly educated it's customers on how the benefits of the product could help them.
It is therefore necessary for entrepreneurs to come up with new, innovative ideas that can help register Thier brands in the hearts of its customer so as not to make Thier innovation or brands go to waste.
Answer:
Whether the demand for their product is elastic or inelsatic AND whether they have close competitors
Explanation:
*DEMAND ELASTIC OR INELASTIC*
If the product A&B is selling has close substitutes, the product is likely to be more elastic. This means that even a slight rise in price will shift consumers to the substitutes ( competitor's product) which have lower prices. Moreover if the product takes a larger proportion of people's income, and is a luxury, the price is likey to be elastic. However if the product is inelastic ( the product doesn't have close substitutes), an increase in price will not cause much fall in sales, resulting in the prevention of losses in revenue. By using this knowledge A&B can determine whether or not they can use price skimming or promotional pricing.
*CLOSE COMPETITORS*
If the product that A&B is selling has close competitors, raising the price greater than competitor's prices will result in losses of A&B and it will loose customers to rival businesses. A&B can also decide by observing the quality of rival's products and examine whether they should further increase the quality and set higher prices for their product to create a 'higher quality image'.
Through these observations A&B can decide if competitive pricing or penetration pricing will be suitable for it or not.
Cindy's reasoning illustrates: <u>sunk-cost fallacy</u>.
<u>Explanation</u>:
The term fallacy refers to failure in reasoning and mistaken belief. A sunk cost is a cost incurred in the business that cannot be recovered. The cost invested in the business and lost is referred as sunk cost.
Sunk cost fallacy gives false hope to the people about their investment plan in business and makes them take wrong decision.
In the above scenario, Cindy invested $850,000 into the business. She faced loss continuously and lost her money. But she stills thinks on investing in her business instead of selling it.
Answer:
A company achieves sustainable competitive advantage if the elements of strategy give buyers the lasting reasons to prefer a company's products or services over those of competitors.
As a result , the correct option is B
Explanation:
When a company achieves sustainable competitive advantage as above,it will sure have a profitable business model and satisfies shareholders' expectations as well as achieve long-term and short-term strategic and financial objectives.
It will also be able to translate its vision,mission and values into a well crafted strategy.