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bekas [8.4K]
3 years ago
10

The relationship between advertising and product differentiation is a.irrelevant; firms with differentiated products do not need

to advertise. b.zero; there is no relationship between product differentiation and advertising. c.negative; the more differentiated the product, the less a firm is likely to spend on advertising. d.positive; the more differentiated the product, the more a firm is likely to spend on advertising.
Business
1 answer:
Salsk061 [2.6K]3 years ago
3 0

Answer:

d.positive; the more differentiated the product, the more a firm is likely to spend on advertising.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers.

Product differentiation refers to the differences imposed on consumers by the seller of a product. Thus, it typically makes a product better for some consumers and worse for others.

Hence, the relationship between advertising and product differentiation is positive; the more differentiated the product, the more a firm is likely to spend on advertising so as to convince and spur consumers into buying the product.

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A credit card company advertises an APR of 15.3%, compounded daily. What
Art [367]

Answer:

B. 16.53%

Explanation:

The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.

the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1

  • i =15.3%
  • n = 365 days

r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%

7 0
4 years ago
Preferred stock is said to be a hybrid of common stock and bonds. Explain fully. Describe the cash flows associated with preferr
Misha Larkins [42]

Answer:

Preferred stock shares the combined characteristics of common stock and bonds.

The cash flows associated with preferred stock are recorded in the financing activity section of the statement of cash flows.  The first is the receipt of cash (cash inflow) when preferred stock shares are issued.  The second is the payment of preferred stock dividends (cash outflow).

Explanation:

The characteristics of common stock shared by preferred stock are there is no fixed maturity date, no repayment of initial investment, preferred dividends do not force the company into bankruptcy, and dividends are not deductible for tax purposes.  The characteristics of bonds that preferred stock shares are fixed interest rate, preferential treatment in liquidation and in the payment of dividends, and non-participation in the residual profits.

4 0
3 years ago
Taylor Company had a salaries payable balance of $18,000 on December 31, 2014. During 2015, it paid $50,000 in cash as salaries,
Flura [38]

Answer:

$18,000

Explanation:

Given data  for Taylor Company;

Salaries payable at the beginning of 2015 (end of 2014) = $18,000

Salary expense during the year (2015) = $50,000

Salaries paid during the year = $50,000

Salary payable at end of year (2015) = ?

Let the salary payable at end of year= S

Using the formula

Salaries payable at the beginning of the year + Salary expense during the year - Salaries paid = Salary payable at end of year

$18,000 + $50,000  - $50,000  =S

S = $18,000

Salaries payable as at December 31, 2015 is $18,000.

8 0
3 years ago
Barron's has collected data on the top 1,000 financial advisers. Company A and Company B have many of their advisers on this lis
scoray [572]

Answer:

We'll start by putting into consideration, the large sample variance at the numerator.

Barron's Variance will be represented using 1 as the subscript.

i.e.

1 = $583 million

2 = $489 million

So,

0: 1²= 2²

: 1² ≠ 2²

=1² / 2²=

= $583 million² / $489 million²

= 583²/489²

= 1.42

Degrees of freedom 15 and 9

Using F table, area in tail is greater than 0.10.

Two-tail p-value is greater than .20

Exact p-value corresponding to F= 1.42 is .5874 (See F table)

p-value > .10

So,we do not reject 0.

We cannot conclude there is a statistically significant difference between the variances for the two companies.

4 0
4 years ago
The sales manager is convinced that a 11% reduction in the selling price, combined with a $65,000 increase in advertising, would
Zarrin [17]

Answer:

net income increase of 11.25%

Explanation:

If the price p is reduced a 11% means that new price will be p(1-0.11)

New price = 0.89p

The new quantities demandes will increase a 25%, this means that the new quantities will be Q*(1+.025) = 1.25Q

So, the net income under this new circunstances will be

1.25 Q * 0.89P = 1.1125 P*Q

This means a net income increase of 11.25%

8 0
3 years ago
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