The pro forma statement's predicted balance of financial account is most directly impacted by the dividend policy.
What sort of a policy is this?The world is full with regulations; for examples, some families have the directive, "No TV till school is out." Policies are developed by organizations and agencies to guide how they conduct business. In retailers, there are return regulations. In the workplace, sick day regulations are typical.
What adage best describes a policy?a state or other institution's policy, rule, procedure, administrative move, inducement, or voluntarily adopted custom. When used critically, policies can influence complex systems and enhance the health and safety of a people.
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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, feature customer service as their significant point of difference and use that difference to compete with less expensive stores is known as competition.
The term "upscale" is used to describe services or goods that are pricy, increased, and marketed targeting topmost clientele. The main objective of a wholesaler is to sell the products to corporations or merchants who would then resell products. A retailer, but at the other hand, exclusively sells products to an ultimate customer as their target audience. These large commercial linkages serve as key specific marketing intermediaries.
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identify the last closing entry: multiple choice question. close the drawing account to the owner's capital account close income summary account to the owner's capital account close expense accounts to the income summary account close revenue accounts to the income summary account
A closure entry is made in the journal at the end of the accounting period, transferring data from temporary accounts to permanent accounts.
After recording a closing entry, all revenue accounts are then moved to the income summary. This is done by making a journal entry debiting all revenue accounts and crediting the income summary. The next step is to determine expenses using the same process. At the conclusion of an accounting period, a closure entry is created to move money from a temporary account to a permanent account. Closure entries are used by businesses to zero out temporary accounts, which display balances for a specific accounting period. Choose the final closing entry from the list of options. close the owner's capital account's drawing account.
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FILL INTHE BLANK the opportunity cost of holding money is measured by the foregone _______ or return on investment that could have been earned by holding other financial assets instead of money.
The opportunity cost of holding money is measured by the foregone return
What are the dangers of holding money as an asset?The opportunity cost of holding money is the interest on an alternative asset that is forfeited. The opportunity cost of holding money, which is represented by the nominal interest rate, is equal to the real interest rate on an alternative asset plus the expected inflation rate, which is the rate at which money loses its purchasing value.
How is a dollar's opportunity cost determined?Opportunity cost is calculated as follows using the formula below: Return on the Most Profitable Investment minus Return on Investment Pursued is used to determine opportunity cost.
How Does Opportunity Cost Work?Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them.
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which of the following probably occurred as the u.s. economy experienced increasing real gdp in 1954? check all that apply. total real income increased. the unemployment rate declined. car sales declined. consumer spending declined.
The following likely happened in 1954 as the US economy had an increase in real GDP.
1. Consumer spending went up.
Briefing:-“Retail” is a relative term
3-The rate of unemployment fell.
Quiz about potential real GDP.possible GDP. the real GDP value at full employment of all the economy's production factors—labor, capital, land, and entrepreneurial skill.
What are short-term changes in real GDP known as?Although real GDP suffers ups and downs in the short term, it generally tends upward over time. Recessions are frequently used to describe these short-term variations in real GDP.
Are real GDP short-term variations predictable?These variations are unpredictable and erratic. When recessions do happen, unemployment increases, while real GDP and other metrics of income, consumption, and production decline. Using the paradigm of aggregate demand and supply, economists examine short-term economic variations.
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On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the February 13 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns View transaction list Journal entry worksheet On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax Note: Enter debits before credits Date General Journal Debit Credit Feb. 13 Clear entry View general journal Record entry
The Cash - 10,975. Credit will be 10,000 and Sales Tax Payable would be 975
In economics, cash is cash in the actual type of money, like banknotes and coins. In accounting and monetary bookkeeping, cash is current resources containing money or cash reciprocals that can be gotten to right away or close right away
Credit is the trust which permits one party to give cash or assets to another party wherein the subsequent party doesn't repay the primary party right away, yet guarantees either to reimburse or return those assets sometime in the not too distant future
Sales taxes payable is a risk account in which is put away the total measure of deals burdens that a business has gathered from clients for the benefit of an overseeing charge authority. The business is the caretaker of these assets, and is obligated for dispatching them to the public authority on an opportune premise
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Which of the following is a possible contingency that should be anticipated in the critical risks and assumptions section of the business plan?
The important risks and assumptions part of the business plan should account for the possibility that - competitors may go for underpricing.
It is acknowledged that there are critical risks involved with development when a business is first launched.
Some of these assumptions should be included in the business plan. Investors may seriously doubt your business's trustworthiness and the value of their financial investment if they learn about some unreported bad aspects of your business or its product.
Using a price strategy based on competitors to undercut the competition. The goal of a penetration strategy is to grow market share by entering a market with prices that are much lower than those of the competition.
The business plan is supposed to identify the issues and dangers that must be managed during the development and expansion of the organization.
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which of the following is not a stage in the buying process? group of answer choices evaluation making a selection need recognition
Recognition is not a step in the buying process. The consumer buying process includes: problem detection. Information gathering. Evaluate your solution. purchase phase. Post-purchase phase.
What is buying process?The buying process is the series of steps a consumer takes to make a purchasing decision. The buying process has certain stages that customers go through as they evaluate and compare different companies, products, and services. Understanding this will help you understand where you are in the customer journey and how to move from one stage of the process to the next.
What are the types of purchasing behavior?There are 4 types of purchasing behavior: Advanced decision making. Limited decision making. Habitual purchasing behavior. Purchasing behavior that seeks diversity.
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which one of the following is not a factor that might cause the bullwhip effect?group of answer choicesshortage gamingorder batchinglong supply chain lead timeevery day low priceslack of information sharing
Supply chain lead time every day low prices lack of information sharing is not a factor that might cause the bullwhip effect.
According to the bullwhip effect, which is a characteristic of the supply chain, modest changes in demand at the retail level can lead to steadily increasing changes at the wholesale, distributor, manufacturer, and raw material supplier levels. The comparatively tiny movement of the whip's wave patterns increasing in size as a result of the person holding it snapping their wrist.
Customers, suppliers, manufacturers, and salesmen all only have a limited grasp of demand and direct control over a portion of the supply chain in supply chain management, but each has an impact on the entire chain with their inaccurate forecasts (ordering too much or too little). Any change throughout the supply chain might have an impact.
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financing activities do not include cash outflows to stockholders to repurchase common stock. t/f
This statement is true: financing activities do not include cash outflows to stockholders to repurchase common stock.
A business that frequently relies on additional debt or equity for funding may display a positive cash flow from financing activities. However, it can indicate that the business is not making enough money. In addition, debt servicing expenses increase along with rising interest rates. Investors should look more into the data because a firm with a healthy cash flow may not be a smart idea if it is already heavily indebted.
On the other hand, it could be a red flag if a corporation is repurchasing stock and paying dividends when its earnings are underwhelming. The management of the company might be working to support the price of its shares and appease investors, but their actions might not be best for the business in the long run.
Investors should look into the transactions if there are any major changes in the cash flow from financing activities. It is crucial to take into account all of the many areas of a company's cash flow statement that affect the overall change in its cash position.
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B-Balls, a manufacturer of athletic balls, is facing increased competition due to the entry of several new firms into the industry. These new competitors have resulted in reduced demand for B-Balls' basketballs, and the company is losing money. What should B-Balls do in regard to output for their basketballs to help minimize losses until some firms exit the industry? They should reduce output to wherever their new MR curve equals the MC curve caused by a leftward shift in demand. They should reduce output to wherever their new MR curve is greater than the MC curve caused by a leftward shift in demand. They should increase output to wherever their new MR curve equals the MC curve caused by a leftward shift in demand. They should increase output to wherever their new MR curve is less than the MC curve caused by a leftward shift in demand.
The B-Balls in regard to output for their basketballs to help minimize losses until some firms exit the industry, they should cut back on production until their new MR curve meets the MC curve.
A firm is a for-profit organization which tend to offer professional services and also is often created as a partnership. Which can also be a firm such as a corporation, limited liability company (LLC), or partnership.
However, the firm then tends to cut back on the production which is until their new MR curve then meets the MC curve which is thus brought on by a leftward change in demand.
Hence, these new competitors have resulted in reduced demand.
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Harriet wants all of her team members to receive a raise, so she gives them all a high 1 rating. Which of the following errors is she falling prey to? A) Contrast B) Halo C) Similar to me D) Central tendency E) Leniency
Harriet wants all of her team members to receive a raise, so she gives them all a high 1 rating. Leniency errors is she falling prey to.
Which of the following is an illustration of a performance measure for effectiveness?Equilibrium scorecard
It is a tool for assessing an organization's performance. It emphasizes both financial and non-financial factors, including customer, internal company, innovation, and learning views.
The reliability of a performance measure is its constancy. The reliability of a performance metric refers to the degree to which individuals who use it believe it to be sufficient or adequate.
The subset of performance indicators that is most important to your business at the highest level of your organization are known as key performance indicators (KPIs). KPIs are used to track your advancement in achieving your strategic objectives.
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a listing or buyer's broker practices nonexclusive single agency without intermediary. practically speaking, this type of agency policy results in which of the following?
This type of agency policy by the broker represents either the buyer or the seller, but not in the same transaction.
A buyer's broker is the person who is involved in carrying out business by acting as intermediary. He owes huge responsibility to the buyer which can be classified as loyalty, obedience and diligence. Non-exclusive single agency is the firm through which the broker represents either the buyer - tenant or the seller-landlord. However, they cannot be from both sides in a same transaction. The term single agency itself represents the interest of a single seller or the buyer. The idea behind the brokerage deal is the final acclamation of successful contract, while the broker themselves are nowhere involved in dealing risks in the financial markets.
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Fill in the blank: _________ of customers will never do business with a company again after one negative experience.
51% of customers will never do business with a company again after one negative experience.
A happy customer is more likely to become a loyal one who can help you increase income, therefore a pleasant customer experience is essential to the success of your business.
The best marketing investment you can make is a client who will advertise your company on your behalf. These are people who are devoted to your brand, spread the word about it, and recommend your goods and services to others.
A company's disregard for what ought to be its top priority: the caliber of consumers' experiences, as shown by an abundance of features, tempting rebates, and a lack of personalized service.
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isabella gathered data on the average percentage of tips received by waitstaff in 31 restaurants in new york city. she works through the testing procedure:
H₀ will not be rejected as the test statistic is not in the rejection region.
A statistic employed in statistical hypothesis testing is known as a test statistic. A test statistic, which can be thought of as a numerical summary of a data set that condenses the data into a single value that can be used to conduct the hypothesis test, is how a hypothesis test is commonly expressed. In order to determine whether to accept or reject your null hypothesis, the test statistic is utilized to calculate the p-value of your findings.
Derived test statistics = 1.489
The crucial factor = \pm1.697
Rejection region = Reject H₀ if t < -1.697 OR t > 1.697
The range of test statistics, which is between -1.697 and 1.697, is considered to be non-rejection.
Error in rejecting H₀
The rejection zone is not where the test statistics reside.
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COMPLETE QUESTION:
Isabella gathered data on the average percentage of tips received by waitstaff in 31 restaurants in New York City. She works through the testing procedure:
H0:μ=14%; Ha:μ≠14%
α=0.1 (significance level)
The test statistic is t0=x¯−μ0sn√=1.489.
The critical values are ±t0.05=±1.697.
Conclude whether to reject or not reject H0. Select two responses below.
Select all that apply:
Reject H0.
Fail to reject H0.
The test statistic falls within the rejection region.
The test statistic is not in the rejection region.
The layers of enterprise architecture are: business, application, information, and:
a)Enterprise software
b)centralized architecture
c) IT systems
d)Technology
e) framework
Answer: d)Technology
D) The enterprise architecture's layers are as follows: technology, application, information, and business.
What are the layers of big business engineering?Business architecture, information architecture, information systems architecture, data architecture, and data delivery systems are all included in a five-layer model.
Which four main types of enterprise architecture are there?The article focuses specifically on the four most well-known EA frameworks: DoDAF, TOGAF, the Zachman Framework, and FEAF.
What are the four ways that enterprise architecture can be defined?Michael Platt, a director in the strategic projects group at Microsoft, offers four perspectives on enterprise architecture: the application perspective, information perspective, technology perspective, and business perspective.
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a price taker: (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) check all that apply has more control over setting prices has less control over setting prices uses more target pricing methods uses more cost-plus pricing methods
A price taker is a person who has less control over setting prices. Th use target pricing methods is used by price takers.
Who is a price taker?An individual or business that accepts market prices because it lacks the market share to set on its own is known as a price-taker. In a market where there is perfect competition, all sellers in the economy are regarded as price takers. This is valid for both sellers and purchasers in the debt and stock markets as well as producers and consumers of commodities and services.
Firms are price takers in the competitive markets. To the extent that these companies all sell the same (substitutable) goods or services, consumers will simply buy from a different lower-cost vendor if they charge higher rates than the going market rate for their items.
Target costing method of pricing must be used by price takers. A corporation is compelled by target costing to consider the profit it wants to make, the price the market will accept, and try to reduce expenses in order to achieve the desired profit.
Therefore, price takers have less control over setting prices and uses more target pricing method.
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a firm has a lower inventory turnover, a longer acp, and a lower fixed-asset turnover than the industry averages. you should not be surprised to find that this firm has: lower asset turnover ratio than the industry average lower return on assets ratio than the industry average lower return on equity ratio than the industry average
A firm has a lower inventory turnover, a longer ACP, and a lower fixed-asset turnover than the industry averages. You should not be surprised to find that this firm has:
I. Lower ATO than the industry average
II. Lower ROA than the industry average
III. Lower ROE than the industry average
The Risk Management Association's Annual Statement Studies are the primary source for industry ratios (RMA). The print editions are located in the reference section of the library. RMA ratios can be found in the IBISWorld database online as well. Sector averages are frequently used as benchmarks or tools to assist businesses compare their performance to others in the industry and assess their financial success. It aids in decision-making and is a helpful tool for investors and company managers.
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Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet. Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the "percent" answers to the nearest hundredth percent.)
The horizontal analysis of General Motors' balance sheet shows that:
2019 2018 Difference %Change
Cash and cash equivalent $16,680 $15,849 $831 5.24%
Marketable securities $9,572 $16,848 $(7,276) -43.19%
Inventories $13,992 $15,024 $(1,032) -6.87%
Goodwill $0 $1,292 $(1,292) -100%
Total liabilities & equities $103,949 $144,953 $(41,004) -28.29%
Horizontal analysis is a financial analysis used to evaluate a company's performance over time by comparing each financial results between the current period and the year before. Horizontal analysis allows company to directly notice any changes happen in each account of its balance sheet and the magnitude of changes that has occured. Horizontal analysis provides a company with historical trends data.
Please refer to the table attached below for more proper data table.
Based on the data we have, we can fill the different coloumn with the gap between the amount of each account in 2019 and the amount of the same account in 2018.
Difference = amount in 2019 - amount in 2018
After finding the differences for each account, we can calculate the percentage of change (%change) by comparing it to the amount of the same account in 2018, using this formula:
%change = difference / amount in 2018
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When the allowance method of recognizing uncollectible accounts is used, the entry to record the write-off of a specific account
No effect increase
What does Allowance Method mean?With the allowance technique, a reserve is set up for anticipated future bad debts. The reserve is calculated as a percentage of the sales made during the reporting period, with the potential for adjustments for the risk related to certain customers.
Uncollectible accounts are recorded where?On the balance statement, the provision for doubtful accounts and bad debt expense are both disclosed. While the provision for doubtful accounts is shown on the balance sheet, bad debt expense is shown on the income statement.
How do you record accounts that are uncollectible?a. A reduction in accounts payable
b. An adjustment to the provision for doubtful accounts
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A common stock's _____ value is typically set at a low amount and has little meaning today other than being used to by some states to assess fees.
A Common stock's par value is typically set at a low amount and has little meaning today other than being used by some countries to assess freights.
Holders of common stock choose the board of directors and vote on commercial programs. Common stock represents a residual claim to a company's ongoing and coming gains.
As similar, shareholders are said to be part possessors in a company. These effects are possessed by the pot itself, which is a legal reality. rather, the shareholders enjoy this residual claim.
Common stock is traded on exchanges and may be bought and put up by investors or dealers. Shareholders of common stock may be entitled to admit tips.
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Arthur crafts miniature chocolate dollhouses which he sells for $24 each. Arthur has calculated the break-even level of sales for his business at $1,370 of revenues. The dollhouses have a variable cost of $9 to produce per unit. What is Arthur's dollar contribution margin per unit?
The correct answer is $12 is Arthur's dollar contribution margin per unit.Arthur crafts miniature chocolate dollhouses which he sells for $24 each.
The contribution margin per unit is calculated as the selling price of a product divided by the variable production costs. The contribution margin per unit is the sum that each sale contributes toward paying fixed costs. Once the fixed expenses have been covered, the profit per unit sold will be shown. The contribution margin is equal to the selling price per unit less the variable cost per unit. The indicator, also known as dollar contribution per unit, illustrates how a certain product impacts the entire revenue of the business. It varies from gross margin in that variable expenses are meant to be differentiated from fixed costs in a contribution computation.
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TRUE/FALSE. one of the six risks that we consider priority for producers to manage is: production and hazards that come with production agriculture. group of answer choices
It is true that one of the six risks that we consider priority for producers to manage is production and hazards that come with production agriculture. (The answer is True).
The six risks of the workplace are safety hazards, biological hazards, physical hazards, ergonomic hazards, chemical hazards, and workload hazards. In the above case the risk comes from production agriculture hazards. These hazards are considered as biological hazards which can be extremely dangerous for the workers. The hazards come from bacteria, viruses, contaminated waste, or animal droppings. It is important to take into account the possibility of bacterial and viral infections infecting the plants and animal that can affect the workers.
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point company paid $4,000 cash to purchase a new machine. the company also paid $500 cash for an initial training cost that was necessary to teach an employee how to operate the machine. which of the following represents the journal entry that would be necessary to record all capitalized costs related to the purchase of the machine? multiple choice account titles debit credit machine 4,500 cash 4,500 account titles debit credit cash 4,500 machine 4,500 account titles debit credit machine 4,000 cash 4,000 account titles debit credit cash 4,000 machine 4,000 prev
Option (a) is correct that is the debit balance(Machine) is Rs.4500 and Credit balance(Cash) is also Rs.4500.
First of all, we will understand meaning of Journal Entry.
Journal entry is the act of keeping or recording any economic or financial transactions. Transactions are listed in an accounting journal that shows the company's debit and credit balances. A journal entry can contain multiple entries, each of which is either a debit or a credit.
Now, moving further, we will record following entries in Journal Account of Point Company:
Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was necessary to teach an employee how to operate the machine.The journal entry of transaction point company paid $4,000 cash to purchase a new machine can be given as follows:
Date Particulars L.F. Debit Amount Credit Amount
1. Machine A/c Dr. Rs.4000
To Cash A/c Rs.4000
(Being machinery is purchased for cash)
The journal entry of transaction the company also paid $500 cash for an initial training cost can be given as follows:
Date Particulars L.F. Debit Amount Credit Amount
2. Machine A/c * Dr. Rs.500
To Cash A/c Rs.500
(Being training given to employees)
Total Rs.4500 Rs.4500
*Note- Training cost will be included in Machine Account.
Hence, the debit balance(Machine) is Rs.4500 and Credit balance(Cash) is also Rs.4500.
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which of the following statements is a primary objective of accounting for income taxes? to compare an enterprise's federal tax liability to its state tax liability. to identify all of the permanent and temporary differences of an enterprise. to estimate the effect of the tax consequences of future events. to recognize the amount of deferred tax liabilities and deferred tax assets reported for future tax consequences.
One of the main goals of accounting for income taxes is to record the amount of deferred tax liabilities and deferred tax assets stated for future tax effects.
An income tax is a fee assessed against individuals or businesses based on their income or earnings. In most circumstances, the amount of income tax is determined by adding the tax rate and the taxable income. The tax rate may vary depending on the type of person and the source of income. The money the government receives is known as tax income, and it can be used for a variety of reasons, including paying public healthcare and education, income taxes creating public infrastructures like roads, trains, bridges, dams, and other such things.
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________ marketing features marketing messages, promotions, and other content delivered to on-the-go consumers through their portable electronic devices.
A) Direct-mail
B) Mobile
C) Mass
D) Viral
E) Kiosk
Consumers who are constantly on the go can receive marketing messages, promotions, and other material through mobile. Thus the correct answer is B. mobile.
Consumers who are travelling or are constantly on the go, use mobile as portable electronic devices, because of which receiving messages, promotions and other materials become convenient.
Portable Electronic Devices are devices with the ability to send, store, or record text, pictures, video, or audio data. Mobile phones, Pagers, computers, cell phones, and reminder recorders are just a few examples of these gadgets.
Digital marketing is marketing that involves interacting with stakeholders using electronic devices. Digital marketing includes social media marketing. Many businesses combine traditional and digital marketing techniques.
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myeong, a promoter, hired an office support staff for a corporation that had not yet been incorporated. If there is a novation clause in a subsequent contract with the corporation and the staff, which of these is correct?
Liz will escape potential liability under the novation contract entered into
Advertiser Meyong hired office support staff for a company that had not yet been formed.
If the subsequent agreement with the company and the employees contains an extension clause, Liz avoids liability arising from the extension agreement. Doing business as a self-managed company is called associational corporatism. The company is not considered. a citizen of the country where it is incorporated and a citizen of the country where it has its principal place of business.
A joint stock company is best thought of as a cross between a sole proprietorship and a corporation. Limited liability means that shareholders cannot be held personally liable for the company's debts, but can still lose their capital investment.
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TRUE/FALSE. managing a multiple-ownership building is usually a simple matter since there are so many owners interested in the outcome.
Managing a multiple-ownership building is usually a simple matter since there are so many owners interested in the outcome False.
Quizlet: What exactly do owners of cooperative buildings own?The owners don't actually own the apartments, in contrast to a condominium. In a cooperative, a business owns the units and sells the owners equity. The owners obtain leases that provide them the right to dwell in particular units in exchange for their shares.
Quizlet: What kind of ownership does a condominium owner have?A condominium owner has fee simple ownership of his airspace. Exclusive ownership is referred to as air space, and joint ownership is referred to as common regions. Co-ownership is known as tenants in common.
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A good way to describe ____ competition is that it mixes a small amount of monopoly power with a large amount of competition, while _____ blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among firms.
A fair approach to explain monopolistic competition is that it mixes a little amount of monopoly power with a huge amount of competition, while oligopoly blends a large amount of monopoly power with a small amount of competition through entry and strong rivalry among enterprises.
Distinguish between monopolistic competition and oligopoly.A monopoly is a sort of imperfect competition in which a seller or producer obtains the lion's share of the market share due to a lack of substitutes or competitors. Monopolistic competition is a sort of imperfect competition in which multiple sellers compete for market share by distinguishing their products. Also, because oligopolies determine prices, they have market power in the economy, which impacts consumers owing to price rises by oligopolists. In other terms, oligopoly is described as a market strategy involving a small number of enterprises. These companies or producers operate specifically to limit output and thus control market returns. In ideal competition, however, several sellers manufacture similar products, allowing buyers to pick between enterprises.
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Which of the following statements would be considered advantages of a stock repurchase? Select all that apply.
A. The market generally perceives a stock repurchase as a sign that management believes that the firm's stock is undervalued.
B. Stock repurchases are an effective way to alter the firm's capital structure.
C. Stock repurchases are especially effective when the amount of equity in the current capital structure is significantly greater than that required by the firm's target capital structure.
D. At times, the company will repurchase its stock at a price higher than the true value of the stock.
The correct options are option (A), (B) and (C). A firm may repurchase its own shares from the market in a process known as a stock repurchase.
The management of a corporation may decide to repurchase its shares if it believes they are undervalued. A shareholder may tender their shares directly to the firm at a set price or the company may purchase them straight from the market.
Generally speaking, companies are hesitant to raise their annual dividend payments unless they are certain that future operations will be able to support the increase. Stock repurchases have the benefit of not being anticipated to continue in the future, making them a practical method of distributing additional free cash flows to investors without raising the regular dividend.
An additional benefit of a stock repurchase is that many investors view it as evidence that management believes the company's stock is undervalued. The value of the company's shares will rise as a result of an increase in demand. A drawback of a stock repurchase is that occasionally the firm will overpay for the stock that is being bought. When this occurs, the stock price will decrease following the termination of the repurchase programme.
Therefore, all the statements, (A), (B) and (C) are advantages of stock repurchase. But statement (D) is a disadvantage.
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6) When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?
A) differentiated marketing
B) affiliate marketing
C) guerrilla marketing
D) affinity marketing
E) grassroots marketing
Nike uses the grassroots marketing techniques for the sales.
What is the definition of marketing?
In economics, marketing means an activities a company undertakes to promote the buying or selling of a product or service
Here we need to find when Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats.
While looking into the given situation, we know that Nike will try to get close to its customers at the local level. After building the relationship with the consumer he will start to make the sales.
Based on this one, the correct option is (E).
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