The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.
<h3>What is the significance of Price/Sales ratio?</h3>
Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.
Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.
Therefore, the aforementioned statement regarding price/sales ratio holds true.
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Answer:
evaluate the attractiveness of the various segments identified.
Explanation:
The third step of the segmentation, targeting, and positioning process is to evaluate segment attractiveness, which begins the targeting phase of the process.
Answer:
Reducing the costs of production.
Explanation:
New product development is a procedure that requires a huge first time cost of production. The product might need new technology and new means to produce.
For example, even just to come up with a new flavor for an already existing brand of chips, new raw materials, storage space, more labor, new tools and equipment, increased marketing cost is required. This poses an increase in cost and certainly not a decrease in the cost of production.
Answer:
Confirmation bias.
Explanation:
Confirmation bias is defined as the tendency for an individual to recall and favour information that confirms one's previous beliefs or hypothesis. It is a form of cognitive bias.
In the given example Joe only accepted information that would confirm his belief that there are fewer cars on the road (that is his commute is now shorter).
He however rejected the information that he now works the night shift, a period when traffic is low.
