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3 years ago

What should a company consider when choosing a celebrity to endorse its products? Explain.

Business

1 answer:

malfutka [58]3 years ago

3 0

Answer:

Explanation:

Celebrity endorsement on a product is vital in increasing brand recognition and having more customers and improvement in sales. Some of the things that should be considered when choosing a celebrity for endorsement of a product include:

1. Identification of their interest: It's vital for the celebrity to have thesame interest with the product to be endorsed. The brand should share the celebrities passion.

2. Their audience engagement should also be considered. It is vital to have celebrities that have a strong followership and large fanbase. This will help in driving ones sales.

3. Celebrities that are controversial and have negative history should be avoided. This can have a negative impact on ones product. For example, using a celebrity that is known to be a drug addict or have a vile lifestyle.

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Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218

Pepsi [2]

Answer:

$519,799.59

Explanation:

Discount rate = R = 14.50%

Year Cash flows Discount factor PV of cash flows

1 218,000.00 0.873362 190,393.0131

2 224,000.00 0.762762 170,858.6793

3 238,000.00 0.666168 <u>158,547.9011</u>

Total of PV = NPV = <u> $519,799.59</u>

<u />

Note:

Df = 1/(1+R)^Year

PV of cash flows = Cash flows x Df

7 0

3 years ago

The industry-low, industry-average, and industry-high benchmarks on pp. 6-7 of each issue of the Camera

Ainat [17]

These are worth careful scrutiny by the managers of all companies because when a company's costs for one or more of the cost benchmarks are deemed "out-of-line," managers need to initiate corrective actions in the next decision round. only have value to the managers of companies whose costs are below the industry averages.

<h3>What do you mean by industry?</h3>

An industry is a group of companies that are related based on their primary business activities.

In modern economies, there are dozens of industry classifications. Industry classifications are typically grouped into larger categories called sectors.

<h3>What are the 4 types of industry?</h3>

There are four types of industry, namely primary, secondary, tertiary and quaternary.

Primary industries involve the activities related to extraction and processing of natural resources, such as agriculture, mining, fishing, etc.

Learn more about industries here:

<h3>brainly.com/question/15843661</h3><h3 /><h3>#SPJ4</h3>

8 0

2 years ago

On May 10, 2020, Crane Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the f

belka [17]

Answer and Explanation:

The journal entries are shown below:

1. Accounts receivable a/c Dr $1,840

To Sales revenue a/c Cr $1,840

(Being the sales is recorded)

2. Cost of goods sold a/c Dr $1,170

To Inventory a/c Cr $1,170

(Being the cost of goods sold is recorded)

3. Cash a/c Dr $1,840

To Accounts receivable a/c Cr $1,840

(Being the payment received is recorded)

Only these three entries are recorded

3 0

4 years ago

The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t

Umnica [9.8K]

Answer:

Revenues=$188,000

Less: Variable Costs=$57,000

Less: Rentals=$37,000

Earnings before depreciation and tax=$94,000

Less: Depreciation =$17,000

Earnings before tax=$77,000

Less: Tax40%=$30,800

Net Income=$46,200

a) Dollars in minus dollars out

Dollars in = Revenues = $188,000

Dollars out = Variable cost + Rentals + Tax = $57,000 + $37,000 + $30,800 = $124,800

Operating cash flow = $188,000 - $124,800 = $63,200

b) Adjusted accounting profits

Operating cash flow = Net income + Depreciation = $46,200 + $17,000 = $63,200

c) Add back depreciation tax shield

Operating cash flow = Earnings before depreciation and tax x (1 - tax rate) + Depreciation tax shield

or, Operating cash flow = $94,000 x (1 - 0.40) + $17,000 x 40% = $63,200

Yes, all the results are same.

7 0

3 years ago

Which of the following is a condition necessary to exclude an obligation from current liabilities? Entry field with incorrect an

lutik1710 [3]

Answer:

The answer is: Obligation that has a distant due date exceeding company's operating cycle.

Explanation:

A current liability is a financial obligation due within one year (or one normal operation cycle).

So a financial obligation that has a due date that exceeds a company´s operating cycle should have been directly classified as a long term liability (or a non current liability) in the first place. It simply is not a current liability that is changed into a long term liability, it always was a long term liability.

The other options represent the steps necessary for turning a current liability into a long term liability.

Intend to refinance the obligation on a long-term basis.
Demonstrate the ability to complete the refinancing.
Subsequently refinance the obligation on a long-term basis.

7 0

4 years ago