Answer:
The answer would be C The effective practice of leadership necessitates a careful look at and understanding of the individual differences brought to the leader-follower relationship by the cross-cultural context.
For first round VCs, using DCF methodology to estimate IPO exit valuation of a portfolio firm, it must consider all expected cash flow estimates starting from the time of its investment.
Group of answer choices
True
False
True. For first round VCs, using DCF methodology to estimate IPO exit valuation of a portfolio firm, it must consider all expected cash flow estimates starting from the time of its investment.
The discounted cash flow (DCF) analysis is a method in finance of valuing a security, project, company, or asset using the concepts of the time value of money. Discounted cash flow analysis is widely used in investment finance, real estate development, corporate financial management and patent valuation. For first round VCs, using DCF methodology to estimate IPO exit valuation of a portfolio firm, it must consider all expected cash flow estimates starting from the time of its investment.
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What can an entrepreneur do to reduce risk?.
An entrepreneur can create a strong business strategy to reduce risk.
Entrepreneurs are the individuals who start new firms, taking on the majority of the risks and reaping the greatest gains. Entrepreneurship is the act of starting a business. The entrepreneur is typically thought of as an inventor who develops original ideas for products, services, businesses, and operational needs.
Creating a business strategy is one of the first actions that entrepreneurs may do to lower the risks associated with a new venture. Before beginning, one must determine how much time and money one will devote to their new venture. Market research should also be conducted. This provides insight into the likelihood that your new venture will succeed or fail.
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what guidance does the codification provide on the accrual of costs associated with planned major maintenance activities?
Minor maintenance tasks that must be completed must be documented when they are incurred in the books. Cash basis is used to record small expenses.
The required details for expenses in given paragraph
An cost is the value of operations that a enterprise incurs to generate revenue. It is in reality described because the value one is needed to spend on acquiring something. As the famous pronouncing goes, “it expenses cash to make cash.”
Planned significant maintenance actions in Step 2 of 3
Major maintenance tasks typically take years to complete. As a result, the Major Maintenance Reserve Account is established.
The Major Maintenance Reserve Account must be established in accordance with the criteria.
Step 3 of 3 Codification-provided Direction
The codification mandates that major maintenance tasks that are known ahead of time must be recorded.
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Complete question
What guidelines does the Codification offer for the accrual of costs related to planned major maintenance activities? (Step 1 of 3) What is the reference for the Codification (ASC)?
which actions can an individual take to become a more effective team member? (choose every correct answer.)
Actions which individual can take to become a more effective team member are committing to the team, and leading by example.
Each and every successful organisation is built upon the shoulders of effective teams. Companies that lack teams that are able to collaborate effectively generally struggle, but companies that have teams that are able to improve quality, complete projects successfully, and increase productivity and efficiency see these benefits. You need to build a team in which every member provides their own unique set of abilities and skills, all of which contribute to the overall achievement of the group in order for your business to function at its optimum levels.
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general questions: a crate is sliding down an inclined ramp at a constant speed of 0.55 m/s. the vector sum of all the forces acting on this crate must point
The vector sum of all the forces is 0.
Vector sum is the operation of including or greater vectors collectively into a vector sum. The so-called parallelogram law offers the rule for the vector addition of two or greater vectors. for two vectors and, the vector sum is obtained by using setting them head to tail and drawing the vector from the free tail to the free head.
calculation:-
since v = constant
dv/dt = 0
Fnet =ma
Fnet = 0.
Force is a push or pulls upon an item because of the object's interaction with some other object. pressure is a power that can exchange the motion of an object. A force can reason an object with mass to alternate its speed, i.e., to boost up. pressure also can be described intuitively as a push or a pull. A force has each significance and course, making it a vector amount.
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by the mid-eighteenth century, what obstacle threatened the economic growth of some countries in asia and western europe?
By the middle of the eighteenth century, soil depletion and deforestation was now a threat to the economic and social development of some countries in Western Europe and Asia.
What is the primary reason for the soil's depletion?
Farming, industrial, and commercial pollution, loss of arable land owing to urbanization, overgrazing, and unsustainable agricultural methods, and long-term climate changes are all factors that contribute to soil degradation.
What and why did Europe lose its forests?
Industrial farming
Europe's deforestation started in the 1700s and 1800s when trees were felled for shipbuilding and as fuel.
The primary cause of forest loss is the conversion of forests into crops. It is primarily responsible for oil palm and soybean production, which, according to the UN Food and Agriculture Organization, accounts for at least 50% global deforestation .About 40% of the world's deforestation is caused by livestock grazing.
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Eadweard Muybridge's photographs, such as Annie G., Cantering, Saddled, are early examples of artistscapturing an object in motion.
The photographs by Eadweard Muybridge, including Annie G., Cantering, and Saddled, are early examples of how to capture motion in a work of art.
Eadweard Muybridge was a pioneer in landscape photography but is best known for his photographic studies of animal and human motion. Leland Stanford, a railroad tycoon, hired Muybridge in 1872 to demonstrate that at a specific point in a trotting horse's gait, all four legs are simultaneously off the ground. Muybridge then began to experiment with photographing motion. His camera didn't have a quick shutter, so his initial attempts were unsuccessful.
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which of the following would be the best starting point on which to focus if an air conditioner manufacturer wants to look at its total costs of production in the short run?
Subtract the variable costs of production from the total output would be the best starting point on which to focus if an air conditioner manufacturer wants to look at its total costs of production in the short run.
Total cost in economics comprises the total opportunity cost of each production factor as part of the its fixed or variable costs. The marginal cost is the additional total cost of producing one more unit. Labor cost, raw materials, consumable manufacturing supplies, and general overhead can all be included in production costs.
The cost of production, also known as the cost price or production costs and can be calculated by adding only those direct and indirect costs of the a manufacturing unit. Here is a formula for calculating production costs. Total cost of production = Labor cost raw material costs, i.e. manufacturing overhead costs.
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Which warehouse ownership type provides the advantage of providing the client with the option of obtaining specialized services tailor-made to suit their needs without the disadvantage of high startup costs?.
The benefit of giving the client the choice to receive specialized services is something that the Contract warehouse offers.
What is Contract?A written or verbal agreement between two or more parties that results in a legal obligation is referred to as a contract.
A contract's terms are legally binding and have specific consequences and remedies in the event that they are broken. A breach of contract occurs when any clauses of the agreement are not carried out without a valid justification.
When an offer, negotiation, and acceptance are made by two or more parties, a contract is formed.
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diminishing returns jesaki inc estimates that it will sell units of product after spending $ thousand on advertising, as given by 0.54 45 1,073 159,597. what is the point of diminishing returns? round to the nearest dollar. $
$38 ,$9 is the point of diminishing returns.
Given
N'(x) = 0.51x4 + 48x³- 1074 x² + 155007
Differentiate wat be
N'(x) = -2·04x² + 144x² - 2148x +6
Again diff" wight 'x'
N" (x) = - 6·12x²+288x-2148
For the point of diminishing retums
Put ΟΥ N" (x) = 0 6.12x²+ 288x-2148 = 0 6·12x²-288x+2148=0 -
On solving the above quadratic Eqh we get 4
x = 37.77 OR x=9.29
Hence x = $38
y = $9
Diminishing returns are the lower in marginal output of a manufacturing technique as the amount of a unmarried issue of production is incrementally extended, keeping all different factors of manufacturing same.
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efficient allocation depends on the quality of financial professionals and the ability of financial markets to identify and direct capital to the best stewards
The statement efficient allocation indeed depends on the quality of financial professionals and the ability of financial markets to identify and direct capital to the best stewards is true.
What is capital?Capital is a broad term which describes anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual.
Even though money itself may be construed as capital, capital is more often associated with cash. It is being put to work for productive or investment purposes. Capital in general is a critical component of running a business from day to day and financing its future growth.
Business capital may derive from the operations of the business or be raised from debt or equity financing.
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organizations seek to gain a competitive advantage by differentiation, cost, or . focus value speed
Organizations seek to gain competitive advantage by the differentiation, cost, or focus.
What is competitive advantage?A competitive advantage is a quality that enables a company to outperform its rivals in the business world. Having access to natural resources like high-grade ores or a cheap supply of energy, highly skilled labor, a strategic location with low barriers to entry, and the ability to use cutting-edge technology and confidential knowledge are all examples of competitive advantages. A company's edge over rivals is known as its competitive advantage. Offering them better and greater value can help you achieve this. Consumer attention is araised by advertisements for goods and services that are more affordable or of greater quality. This is the basis for brand loyalty—the preference customers have for one brand of good or service over another. When analyzing competitive advantage, value proposition is crucial.
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focuses on regionalizing resources more effectively and responding to rapid environmental changes, such as increased political and foreign exchange risks and global competition.
Strategic planning and control focuses on regionalizing resources more effectively and responding to rapid environmental changes, such as increased political and foreign exchange risks and global competition.
Strategic planning is the process through which an organization determines its strategy or direction and decides how to allocate its resources to achieve its strategic goals. It could also include constraints for directing how the plan is put into action.
In the 1960s, firms started to prioritize strategic planning, which is still a crucial component of strategic management today. It is carried out by strategic planners or strategists who analyze the company and its link to the competitive environment using a variety of parties and research sources.
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holmes company accepts a 4-year 2% note as payment for its merchandise. the prevailing interest rate at the time is 9%. holmes should
Holmes Company will take a 4-year, 2% note in exchange for its goods. At the time, the interest rate was 9%. Holmes must debit the receivable notes with the present value calculated at 9%.
When notes receivable are deducted, what happens?Normally, the balance of outstanding notes is a debit. Like other assets, notes receivable increase as a result of debits and decrease as a result of credits.
Are notes and other receivables recorded at present value?Conceptually, the first calculation of receivable notes is predicated on their present value. The present value is the sum of all future cash flows discounted at the applicable rate of interest for similar notes.
What would "present value of Notes Receivable" literally imply?A note's face amount plus the present value of the interest payments make up its present value. Calculations of present value are based on market interest rates.
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what are the portfolio weights for a portfolio that has 152 shares of stock a that sell for $30 per share and 120 shares of stock b that sell for $20 per share?
The portfolio weights for Stock A and Stock B are 0.555 and 0.445 respectively.
What is Stock?
In the world of finance, stock (also known as capital stock) refers to all of the shares that constitute a corporation's or company's ownership. A single share of stock represents a fractional ownership interest in the company based on the total number of shares. The shareholder (stockholder) will then typically be entitled to that portion of the company's value, proceeds from the sale of company assets (after paying off all senior claims like secured and unsecured debt), or voting rights, with these rights frequently being distributed in proportional to the amount of money evey stockholder has invested.
This can be calculated by dividing the number of shares of each stock by the total number of shares (272): 152/272 = 0.555 and 120/272 = 0.445.
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reserves are controlled by the project manager and the owner of the project and are used to cover major unforeseen risks to the entire project.
The management reserve, which is under the responsibility of the project manager and the project owner, is used to cover significant unanticipated risks to the overall project.
What is the management reserve?The portion of the project budget set aside in the management reserve is for unanticipated work that falls under the project's purview. The final project budget is created by adding the management reserve to the cost baseline.
Unforeseen risks are covered by the management reserve, which is applicable to the entire project.
The owner, the project manager, or upper management typically have control over these reserves. Management reserves are separate from the budget.
The cost baseline for the management reserve is often increased by 5 to 10% in order to estimate the management reserve.
The project manager would determine the management reserve as $6,050 (or $121,000 × 5%), assuming a cost baseline of $121,000 and a 5% management reserve.
Therefore, the management reserve, which is under the responsibility of the project manager and the project owner, is used to cover significant unanticipated risks to the overall project.
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FILL IN THE BLANK. upscale retailers, such as nordstrom, feature customer service as their significant point of difference and use that difference to compete with less expensive stores. this is known as___competition.
Upscale retailers, such as Nordstrom’s, feature customer service as their significant point of difference and use that difference to compete with less expensive stores. This is known as non-price competition.
What is Competition?Competition is a condition in a market when businesses or sellers compete with one another for customers' business in an effort to attain a certain business goal, such as earnings, sales, and/or market share. In this context, rivalry and competition are frequently used interchangeably.
Competition in economics refers to a situation where one business strives to outperform another in terms of success. One company can be attempting to outsell a rival. It's not difficult to identify your competitors in detail. Businesses who provide comparable or identical products to yours could be competitors.
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Which of the following may not characterize an oligopoly?
A. A few firms
B. No market power
C. High barriers to entry
D. Substantial control over price
Answer: B. No market power
No market power may not characterize an oligopoly. Hence, option B is correct.
What is No market power?When a business lacks market dominance, its products are frequently remarkably comparable to those of its competitors. Thanks to this, customers may now easily switch from a company's product to another's.
The ability of a firm or group of enterprises to raise and maintain prices above the level that would prevail in the absence of competition is known as market or monopolistic power. Utilizing market power reduces productivity and harms the economy.
Thus, option B is correct.
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baseball player alex rodriguez earned $20,000,000.00 in 2016. he played in 65 games. what was his salary per game to the nearest thousand dollars?
Alex Rodriguez salary per game by playing baseball will be equal to $3,076,923.
Calculation:
His total earning = $20,000,000
No of games played by him = 65
His salary per game of baseball = $20,000,000/65 = $3,076,923
A bat and ball game called baseball is played by two teams, each with nine players. Nine innings make up the entire game, during both of which teams' players alternate at bat, trying to advance round four bases to score runs. The team that has the most runs at the conclusion of the game wins. Each innings includes three out of for each team. Baseball's origins remain unknown. In the 14th century, baseball-like games were played in Russia and Associated parties (a region of Romania), and in the 1330s, monks throughout France became huge fans of the a similar game. The main goal of sports is to outdo your enemy's team in points scored in order to win the game.
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Answer:
$307,692.31
or if you need it rounded to the nearest thousand:
$308,000.00
Explanation:
20,000,000 divided by 65 = $307,692.31
the socially efficient level of production occurs where the marginal cost curve intersects question 46 options: a) marginal revenue. b) average total cost. c) demand. d) average variable cost.
When marginal cost and marginal benefit are equal, output is at its highest level from a social standpoint.
What is marginal cost?The incremental cost of producing more goods or services, also known as the marginal cost in economics, is the change in the overall cost that results from increasing the amount produced. The difference between average cost, or total cost divided by the quantity of units produced, and marginal cost is the number of units produced. While fixed costs do not change with production, marginal costs do with each level of output and time period taken into account. Marginal costs encompass all costs that change with production level. For instance, the fixed expenses of the factory building that are unaffected by output will not be included in the marginal cost of creating one automobile, which will only comprise the price of labor and the parts required to produce the additional automobile.
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Based on recent demand for single family homes in a growing city, it is recommended potential home buyers put 20 percent down when making an offer. A mortgage loan officer would like to test the claim that the average percent down on a single family home purchase is greater than the recommended 20 percent. To test this claim, at the 5% significance level, the mortgage loan officer collects the following data on a sample of 22 recent home purchases and records the percent down. The following is the data from this study: Sample size =22 recent home purchases Sample mean =24 percent down Sample standard deviation =9 percent down Identify the null and alternative hypothesis for this study by filling in the blanks with the correct symbol (=,≠,<, or > to represent the correct hypothesis.)
Based on the recent demand for single-family homes in a growing city, it is recommended that prospective homebuyers make a 20 percent down payment when making an offer.
Rising mortgage rates have put much-needed pressure on the housing market in recent months after home prices hit record highs across the country. But as mortgage rates have started to decline in recent weeks, many economists disagree on whether home prices will continue their slow decline through 2023 or plummet. mortgage rates are maintained. This tight inventory has kept prices from experiencing deeper declines, making homes remain unaffordable for many, especially first-time homebuyers. Although home prices remain high year after year, they are not as eye-catching as they were earlier this year. . How home prices fall in 2023 will likely depend on where mortgage rates go. After a red hot couple of years for the housing market, there are signs that a correction is underway, but it has been slow. Mortgage rates are still more than double what they were in the first week of 2022 and home prices are more than 6% higher than a year ago, making it difficult for prospective buyers to access affordable housing. $379,100 in October, up 6.6% from a year ago but below the record $413,800 in June, according to the National Association of Realtors (NAR). Still, higher housing costs have hurt homebuyers as mortgage applications are at their lowest level in 25 years, according to the Mortgage Bankers Association (MBA). the ninth straight month of declining sales as homebuyers were "pushed out of qualifying for a mortgage," Lawrence Yun, NAR's chief economist, said in the report.
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Lila needs a custom frame for a painting that her friend made for her. i’ve been framed is offering 50 percent off their regular price of $115 plus an additional 10 percent off the sale price. the framers is offering 30 percent off their regular price of $120 plus an additional 40 percent off the sale price. which location is offering the better price and how much cheaper is it? the frame is $1.35 cheaper at the framers. the frame is $8.65 cheaper at i’ve been framed. the frame is $10 cheaper at the framers. the frame is $15 cheaper at i’ve been framed.
The location that is offering the better price is the Framers.
Custom frame at the Framers is cheaper by $1.35.
In order to determine which business offers the lower price, the prices after the discount have to determine.
Discounted price for I’ve Been Framed
After the first discount, the price of the frame would be 50%(100 - 50%) of the original price.
50% x $115
0.5 x $115 = $57.50
Final discount = (100 - 10%) = 90%
90% x $57.50
0.9 x $57.50 = $51.75
Discounted price for The Framers
After the first discount, the price of the frame would be 70%(100 - 3 0%) of the original price.
70% x $120
0.70 x $120 = $84
Final discount = 100 - 40 = 60%
60% x $84
0.6 x $84 = $50.40
The location that is offering the better price is the framers.
Difference in price = $51.75 = $50.40 = $1.35
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Answer:15
Explanation:
certain balance sheet accounts of a foreign subsidiary of orchid company have been stated in u.s. dollars as follows: stated at current rates historical rates accounts receivable, current $ 271,000 $ 291,000 accounts receivable, long term 122,000 133,000 land 61,000 63,000 patents 89,000 94,000 $ 543,000 $ 581,000
The total should Orchid's balance sheet include for the preceding items $430,000.
Balance sheet:
Balance sheet refers the financial statement that contains details of a company's assets or liabilities at a specific point in time.
Given,
Here we have certain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows:
Stated at [Current Rates] [Historical Rates]
Accounts receivable, current. . . . . . . . . . . . . . . . . [$200,000] [$220,000]
Accounts receivable, long term. . . . . . . . . . . . . . . [100,000] [110,000]
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [50,000] [55,000]
Patents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [80,000] [85,000]
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [$430,000] [$470,000]
And we need to find the total should Orchid's balance sheet include for the preceding items.
As we looking into the given balance sheet we have identified that the total should Orchid's balance sheet include for the preceding items
=> Total of current rate is $430,000
Where as the foreign currency is the functional currency, translation (rather than re-measurement) is required.
And all the assets accounts are translated at current rates.
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in which stage of the product life cycle are expenses highest? group of answer choices growth introduction maturity decline
The answer is stage 4 of the Product Life Cycle – Stage of decline 1 product, 10 competitors, minimum profits, a huge amount of manpower and resources in use – A typical scenario that a product might face in its last stage. In this stage the expenditures begin to equal the profits or worse, expenses are more than profits.
what would managers and staff review annually in order to ensure compliance with the joint commission (tjc) to improve patient safety?
Each year, the Joint Commission publishes a list of "do not use" terminology, acronyms, and symbols, in addition to setting-specific patient objectives. Sentinel events are also included on this list.
What is Joint Commission?Generally, An impartial assessment approach built on Joint Commission criteria may assist healthcare organizations gauge performance and making improvements. The guidelines put a lot of emphasis on crucial organizational and patient care tasks that are necessary for delivering secure, high-quality care.
The Joint Commission enterprise's goal is to empower and enable healthcare organizations all over the world to lay the groundwork for high-quality treatment and patient safety. We collaborate with tens of thousands of healthcare professionals, providing us with unparalleled knowledge and proficiency in the provision of treatment.
The Joint Commission publishes a list of "do-not-use" terminology, acronyms, symbols, and sentinel events each year in addition to outlining particular patient objectives.
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in the osi model, an ip packet, often called a(n)____, has two main sections: the header and the data section (sometimes called the payload).
In the OSI model, an IP packet, often called a(n) network service, has two main sections: the header and the data section (sometimes called the payload).
In pc networking, a community carrier is software strolling at the network utility layer and above, that provides information garage, manipulation, presentation, conversation or different functionality. community service – a capability that enables a community operation. It typically is provided via a server (which may be walking one or greater services), based totally on community protocols jogging on the software layer inside the Open systems Interconnection (OSI) model of the network. network services include IP addressing, domain call machine (DNS), number one domain e mail service, internet get entry to, web content material filtering, security merchandise which includes firewalls, VPN termination and intrusion prevention systems (IPS), and the vital equipment and workforce to assist these services.Learn more about network service here: https://brainly.com/question/14306929
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what role do big corporations take in creating laws that benefit corporations and disadvantage the average person?
A corporation has the benefit of limiting personal liability, ensuring the continuity and security of the business, and facilitating capital access.
Briefing:-A corporation has drawbacks such as being time-consuming, subject to double taxation, and requiring strict formalities and protocols to be followed.
How does society gain from the social duties carried out by large corporations?It establishes a crucial ethical stance, according to which members are responsible for carrying out their public duty. Our actions must be for the good of society as a whole. We can achieve the ideal balance between economic growth and the welfare of society and the environment in this way.
What advantages do the corporation's origins offer?Gain tax breaks, secure your assets. Business debts are typically not personally liable for corporation owners, who benefit from limited liability protection.
Develop your business for today and tomorrow.
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when predicting or explaining the rate of acceptance and diffusion of a new product, the degree to which it can be sampled on a limited basis is its .
When predicting or explaining the rate of acceptance and diffusion of a new product, the degree to which it can be sampled on a limited basis is its trialability.
Trialability is a term used to describe how simple it is for a client to sample a new item or service. To draw in new customers, a product or service must be trialable since unwilling consumers will not utilize it if it is too expensive or difficult to use.
Very few items receive enough attention and notoriety to draw sizable numbers of customers on their own, such as the iPhone in 2007, which caused buyers to line up for hours merely to purchase. How many Steve Jobs is there still alive today, though?
Since their potential consumers won't rush out and buy them, the vast majority of goods and services—both new and existing—need to be seen by their target audiences.
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Which of the following statements regarding global segmentation, targeting, and positioning is true?
A. Companies must continually adjust products and marketing strategies to meet the changing needs of global markets.
B. Global segmentation, targeting, and positioning activities are far less complicated than the same activities in the domestic market.
C. When developing a global STP strategy, it is best to define segments by geography alone.
D. Segmentation, targeting, and positioning activities for global markets do not differ substantially from that of domestic markets.
E. The "golden rule" for global STP activities for firms is to never alter a firm's marketing mix to serve the needs of global markets.
Based on the concept of global business, the statements regarding global segmentation, targeting, and positioning that is true are "Companies must continually adjust products and marketing strategies to meet the changing needs of global markets."
What is Global Segmentation?Global Segmentation is a term that is used to describe the process or method utilized for a group of consumers with common needs that cross national borders.
Usually, global segmentation, targeting, and positioning are needed when the likeness of consumers' needs and preferences only spans across the region or several countries.
Therefore, to carry out global segmentation, business firms must adjust products and marketing strategies to meet the changing needs of global markets in different countries and areas.
Different Global segmentationDemographic segmentation, psychographic segmentationbehavioral segmentation and geographic segmentationHence, in this case, it is concluded that the correct answer is option A "companies must continually adjust products and marketing strategies to meet the changing needs of global markets."
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A true statement on global segmentation, targeting, and positioning, is that A. Companies must continually adjust products and marketing strategies to meet the changing needs of global markets.
How can companies adapt on the global stage?The global stage for the marketing and sales activities of a company, is quite complicated. This is because companies have to adjust their operations for the difference in cultures that are unlike the ones they have in their domestic markets. As a result, coming up with global strategies such as segmentation, targeting, and positioning, becomes much more difficult and complicated on the global scale.
As a result, it is best that companies continue to adjust their products and marketing strategies so that they can keep up to date with whatever needs that are required in the global market. And so they can be able to match these needs and use them to their advantage to be more profitable.
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TRUE/FALSE. competition has driven the economic profits in the dog grooming business to zero. surya bacha, who owns a dog grooming business, would be better off leaving the industry for another alternative.
Competition has driven the economic profits in the dog grooming business to zero. surya bacha, would be better off leaving the industry for another alternative. This statement is false.
What is economic profits?
Economic profit is the difference between implicit costs and accounting profit. Implicit cost is the cost of the next best option that is forgone when one option is chosen over another option. For example, if Surya left his job as an accountant to start his business. If he earns $100,000. His implicit cost would be $100,000.
Economic profit = accounting profit - implicit cost
Accounting profit is the difference between explicit cost and revenue. Explicit cost is the cost that is actually incurred. An example of explicit cost is the wages paid to labor.
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