Answer:
A. pricing
Explanation:
Pricing entails determining the value to attach to a product. It is the process through which a business decides how much customers will pay for its products. A business must consider the production costs and the desired margins when setting a price.
Price plays a crucial role in the success of a product and the business. A high price has higher profit margins but may put-off some customers. A low price may attract demand but may lead to losses. Sometimes, low prices are associated with a poor quality product.
Is Certificate of Deposit an available answer choice?
Answer:
Debit Accounts Payable $24,000; credit Notes Payable $24,000.
Explanation:
Accounts payable represents the amount that a business owes, it represents it's liabilities.
If a notes payable is replacing the balance on account payable for $24,000, the amount is to be paid off at an interest rate of 4% in the next 60 days.
The journal entry to be raised is a debit of $24,000 to Accounts Payable account to reduce the liability balance, and a credit of $24,000 to Notes payable to indicate we have a loan that is payable in 60 days.
Answer:
c. List EZ Lawn stock on foreign stock exchanges to offset any currency losses.
Many foreign companies do this and list their stocks as ADRs in the US, so this is a method that actually works. The problem is that will listing American stocks in foreign markets help? Probably you could list some stocks in European, Japanese or even Canadian markets. But most foreign exchange markets pose a higher risk than a currency exchange risk.
Explanation:
Currency risk refers to the possibility that a company that engages in international trade losses money due to variations in the exchange rate between their domestic currency and a foreign currency. The best way to protect a company are currency hedged funds that trade currency exchange futures, but this option isn't included in the list.
a. Concentrate all of the EZ Lawn outsourcing to one or two neighboring nations. ⇒ This will increase the risk since it is similar to investing all your money in one single stock, it can be great or it can be a disaster.
b. Re-locate a team of EZ Lawn managers overseas to stay abreast of currency changes. ⇒ You can do this from anywhere in the world, you do not need to relocate someone.
d. Assign an EZ Lawn manager the task of monitoring currency fluctuations. ⇒ Similar to option B, it just takes a few seconds to do it and anyone can do it. It is something so basic that every company should do it. It is like telling someone that they shouldn't forget to keep breathing. It can help you deal with currency fluctuations, but it doesn't protect you from them.