5. The role of brand names and advertising. Which of the following statements about expenditures on advertising is true? A. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.
B. When a firm spends a small amount of money on advertising, this signals that the quality of the good is high.
C. If a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising.
Answers
Answer:
A. When a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.
Explanation:
When a firm spends a large amount of money in advertising its product, it means that the company is confident about its product and is willing to spend a lot because they know their product would be a success
I hope my answer helps you
Related Questions
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 5,700,000 1 4,300,000 2 4,800,000 3 5,300,000 4 6,700,000 5 7,400,000 6 8,200,000 All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants a $9.2 million signing bonus payable today and a contract value increase of $1,200,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 4.7 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
The Lebanese steel factory “STEEL CO” was the leader in its market for many years. Today, the management noticed that sales are decreasing since the market prices are dropping down due to unbeatable offers and discounts from other companies operating in the market for more than 20 years ago.The management decided to use “Analytical Power” (software) to analyze the market by collecting data online via Internet from many websites and saving this data on large servers. As a result, “Steel Co.” decided to change its production line to manufacture steel products only to luxurious villas and residential homes, located in high level areas of Lebanon. This strategy helped the company to sell targeted customers at higher prices making higher revenues. The new system includes a Website allowing customers to select online the designs they wish, and even to customize the products based on quality, colors, styles, etc…Case Questions (6 points each)1)What is the force according to Porter’s competitive forces model, faced by the company? *CustomersSuppliersNew market entrantTraditional competitor2)What is the information system strategy (or strategies) used by the company to face the forces? *Focus on market nicheFocus on market niche & Low cost leadershipFocus on market niche & Customer intimacyProduct differentiation & Customer intimacy3)What are the main IT components mentioned in this case? * a) Software / Telecommunications / Physical facilitiesb) Hardware / Software. C) Software / Telecommunications / Hardwared) Telecommunications / Software4)If the company is not sure which IS strategy to use in order to face the competitive forces, which model may best help in this case? *Porter competitive forcesValue chainPorter strategiesEconomic impacts5)To which type of system the “Analytical Power” software belongs? *DSSESSMISTPS
During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100,000,060 common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. Jan. 9 Issued 50,000,000 common shares for $18 per share. Mar. 11 Issued 4,500 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $18 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). Date General Journal Debit Credit Jan. 12 Land 5,000,000 Paid-in capital—donation of land 5,000,000 Sept. 1 Common stock 2,000,000 Retained earnings 44,000,000 Cash 46,000,000 Dec. 1 Cash 24,000,000 Common stock 1,000,000 Gain on sale of previously issued shares 23,000,000
The projected benefit obligation was $460 million at the beginning of the year. Service cost for the year was $25 million. At the end of the year, pension benefits paid by the trustee were $21 million and there were no pension-related other comprehensive income accounts requiring amortization. The actuaries discount rate was 5%.
Answers
Answer:
$280
Explanation:
Given that Sales = $3,060
Minus: Cost of goods sold = $1,800
Gross Profit = $1,260
Minus: Operating expenses is = $600
Thus Operating profit is = $660
Minus: Interest = $146
Profit before tax = $514
Tax at 40% = $514 * 0.4 = $206
Net income (Income after-tax) = $308
Minus: Preferred stock dividend = $28
Earnings available to common stockholders = $280
Hence, in this situation, the correct answer is $280 per share
Answers
Answer:
Amount dollars
Explanation:
Given
principal amount per month
Total time period years
months
Monthly rate of interest
As we know that
Where A is the amount
P is the principal amount
r is the rate of interest
n is the number of times interest applied over the total time period
t is the total time period
Substituting the given values in above equation, we get -
Final answer:
The payments of $190 per month for 4 years that your parents are giving you at the start of college, assuming an interest rate of .45 percent per month, are worth $7484.86.
Explanation:
The subject of this question is about calculating the present value of an annuity. The formula to calculate the present value of an annuity is PV = PMT * [(1 - (1 + r)^-n) / r], where PV is the present value, PMT is the monthly payment, r is the monthly interest rate, and n is the number of periods. Here PMT = $190, r = .45/100 = .0045, and n = 4 * 12 = 48 months.
Substituting the values into the formula, we get PV = 190 * [(1 - (1 + .0045)^-48)/.0045]. Then, performing the calculations, we get the present value PV = $7,484.86. Therefore, the payments your parents are providing for the 4 years of college are worth $7484.86 when you first start college assuming an interest rate of .45 percent per month.
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Answers
Answer:
$2,960,000
Explanation:
Raw Material Used in production:
= Raw Material Inventory Beginning + Purchases of Raw Material - Raw Material Inventory Ending
= $30,000 + $1,500,000 - $60,000
= $1,470,000
Total Manufacturing Cost:
= Raw Material Used in production + Direct Labor + Manufacturing Overhead applied to Work in process
= $1,470,000 + $690,000 + (225,000 + 75,000 + 500,000)
= $1,470,000 + $690,000 + $800,000
= $2,960,000
b. Coaches make suggestions to clients rather than elicit ideas.
c. Coaches clarify an individual's psychological contract.
d. Coaching is typically a special investment in top-level managers.
Answers
Answer:
b. coached make suggestions to clients rather than elicit ideas.
Final answer:
Coaches clarify an individual's psychological contract.
Explanation:
A true statement about coaching according to the options given would be option c: 'Coaches clarify an individual's psychological contract.' This specific line of action within coaching entails that coaches help clients clarify their professional roles, duties, and expectations, which can also indirectly lead to mental clarity.
As for the other options, they each possess some inaccuracies. Option a: 'Coaching should never be carried out in groups,' is incorrect because group coaching is indeed a common practice. Option b: 'Coaches make suggestions to clients rather than elicit ideas,' is inaccurate due to coaches often encouraging clients to develop their thoughts and solutions. Lastly, option d, 'Coaching is typically a special investment in top-level managers,' comprises a limited viewpoint since coaching is applicable to employees of all levels.
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Answers
Answers
Answer:
In this situation, most of the NASA workforce would still be composed of austronauts with jet fighter experience because they would be lured by the higher wages offered to them.
However, the difference would lie in that there would also be some austronauts without jet figther experience, who would still try to get into NASA, despite being offered lower wages.
This is a different situation to the current one, where jet fighter experience is an requirement to become a NASA austronaut, which means that those without this type of experience are barred from entering NASA, no matter how low of a wage they would be willing to take.
Final answer:
Offering higher salaries to astronauts with jet fighter experience may attract more qualified candidates with these skills, as these prepare them for the extremes of space travel. Yet, this could create salary disparity and undervalue other essential astronautical skills and experience.
Explanation:
If NASA were to revise their hiring strategy and offer higher salaries to astronauts with jet fighter experience, it might increase the number of qualified applicants with this specific type of experience. Jet fighter experience and the associated G-force training in simulators is highly valuable in the space industry as it prepares individuals for the extreme forces experienced during space travel. Furthermore, adapting to zero G (free fall or weightlessness), another specific aspect of astronaut training, could be an easier transition for those with jet fighter background.
However, this kind of strategy might create a salary disparity among astronauts, potentially leading to dissatisfaction among those without jet fighter experience. It's important to remember that there are many valuable skills and experience required in space exploration, not just those gained through jet fighter training. Higher salaries based purely on jet experience might overlook other important attributes and qualifications.
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