This partnership is most likely to an Strategic Alliance.
Strategic alliance is an agreement between two companies to work on the mutually beneficial project while each of the company work independently.
It is done for expanding business in the new market, new product line or to compete with the competitor.
This allows companies to work collectively and share the profit earned. It helps in sharing knowledge, skills, saving the resources.
It may be for short period or long period depending upon the task to be accomplished.
Under this agreement, the responsibility of the each member is clearly defined.
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Answer:
The lump sum be of $237,228.84
Explanation:
In order to calculate how large must the lump sum be we would have to use and calculate the formula of Present value of annuity due as follows:
Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075
Present value of annuity due=$25,000*9.489153726
Present value of annuity due=$237,228.84(Approx)
The lump sum be of $237,228.84
Answer:
The firm reduced its price to maintain its market share.
Explanation:
An online streaming service is providing its basic package at the price of $14.99.
A competitor of the firm offers the same service at $13.99.
The firm in the reaction will also reduce its price to $13.99.
We know that the consumers always prefer the cheaper substitute, so if the competitor was providing the service at a lower price, it was most likely that the consumers will purchase from the competitor.
This would have led to a decline in the demand and thus the market share of the firm. So in order to maintain its market share. The firm reduced its price at the same level as its competitor.
I think the answer is c.capitalize on interest but i'm not quite sure
