Answer:
A. True
Explanation:
Arbitrage is a term that describes an activity or operation of making transactions of any of securities, currency, or commodities in various markets. The main purpose is to derive benefits or gets profits from the varying prices of those commodities and assets when resold.
Hence, it is TRUE that Arbitrage is the purchase of assets or commodities on one market for immediate resale on another in order to profit form a price discrepancy.
Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and one that pays an 8.5% APR, compounded daily (Bank Daily). Using only effective annual rates, which bank would you prefer?
Answer:
8.6% APR, compounded monthly
Explanation:
Effective annual rate = ( 1 + periodic interest rate)^m - 1
8.6% APR = (1.007167)^12 - 1 = 0.089472 = 8.95%
m = number of compounding = 12
periodic interest rate = 8.6% / 12 = 0.717%
8.5% APR = (1.000233)^365 - 1 = 0.088706 = 8.87%
m = number of compounding = 365
periodic interest rate = 8.5% / 365 = 0.02329%
I would prefer the 8.6% APR, compounded monthly because the effective annual rates are higher
The general ledger of Zips Storage at January 1, 2021, includes the following account balances:Accounts Debits CreditsCash $ 25,700 Accounts Receivable 16,500 Prepaid Insurance 14,200 Land 159,000 Accounts Payable $ 7,800 Deferred Revenue 6,900 Common Stock 154,000 Retained Earnings 46,700 Totals $ 215,400 $215,400 The following is a summary of the transactions for the year:1. January 9 Provide storage services for cash, $145,100, and on account, $57,700.2. February 12 Collect on accounts receivable, $52,600.3. April 25 Receive cash in advance from customers, $14,000.4. May 6 Purchase supplies on account, $11,400.5. July 15 Pay property taxes, $9,600.6. September 10 Pay on accounts payable, $12,500.7. October 31 Pay salaries, $134,600.8. November 20 Issue shares of common stock in exchange for $38,000 cash.9. December 30 Pay $3,900 cash dividends to stockholders.1. Prepare a post-closing trial balance. (Hint: The balance of Retained Earnings will be the amount shown in the balance sheet.)2. Prepare an unadjusted trial balance3. Prepare an adjusted trial balance4-a. Prepare the income statement for the year ended December 31, 2021.4-b. Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)5. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)6. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances.
Answer:
The solution and the calculation for this question is shown on the first, second , third , fourth and fifth image
Explanation:
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $129,100 Advertising expense $53,200 Depreciation on plant 64,600 Property taxes on plant 16,000 Property taxes on store 8,160 Delivery expense 24,300 Labor costs of assembly-line workers 111,300 Sales commissions 40,100 Factory supplies used 28,700 Salaries paid to sales clerks 57,100Work in process inventory was $14,000 at January 1 and $16,700 at December 31.Finished goods inventory was $61,800 at January 1 and $49,800 at December 31.Required:Compute cost of goods manufactured.
Answer:
$339,160
Explanation:
The computation of the cost of goods manufactured is shown below:
Cost of goods manufactured is
= Material used in product + Labor costs of assembly line workers + Factory overheads + Opening Work in process – Closing Work in process
where,
Factory overheads is
= Depreciation on plant+ Property taxes on plant+ Factory supplies used
= $64,600 + $8,160 + $28,700
= $101,460
Now put all other values together with this in the above formula
So,
= $129,100 + $111,300 + $101,460 + $14,000 - $16,700
= $339,160
Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.For each item, indicate the cost category to which it belongs.ItemCategory1. Property taxes on the factory building. Period Costs Direct Materials Direct Labor Manufacturing Overhead Direct Materials and Manufacturing Overhead2. Production superintendents’ salaries. Period Costs Direct Materials and Manufacturing Overhead Direct Materials Manufacturing Overhead Direct Labor3. Memory boards and chips used in assembling computers. Manufacturing Overhead Direct Materials and Manufacturing Overhead Direct Labor Direct Materials Period Costs4. Depreciation on the factory equipment. Direct Materials Direct Materials and Manufacturing Overhead Direct Labor Manufacturing Overhead Period Costs5. Salaries for assembly-line quality control inspectors. Direct Materials and Manufacturing OverheadDirect MaterialsPeriod CostsDirect Labor or Manufacturing Overhead6. Sales commissions paid to sell laptop computers. Period CostsManufacturing OverheadDirect Materials and Manufacturing OverheadDirect LaborDirect Materials7. Electrical components used in assembling computers. Manufacturing OverheadDirect MaterialsPeriod CostsDirect Materials and Manufacturing OverheadDirect Labor8. Wages of workers assembling laptop computers. Period CostsDirect Materials and Manufacturing OverheadDirect LaborDirect MaterialsManufacturing Overhead9. Soldering materials used on factory assembly lines. Direct Materials and Manufacturing OverheadDirect LaborManufacturing OverheadPeriod CostsDirect Materials10. Salaries for the night security guards for the factory building. Manufacturing OverheadPeriod CostsDirect Materials and Manufacturing OverheadDirect MaterialsDirect Labor
Answer:
The various costs associated with the Gala Company could be classified into the following:
a. Direct Material Cost
Memory boards and chips used in assembling computers.
b. Direct Labour Cost
Production superintendents’ salaries.
Salaries for assembly-line quality control inspectors.
Wages of workers assembling laptop computers.
c. Manufacturing Overhead
Sales commissions paid to sell laptop computers.
Electrical components used in assembling computers.
Soldering materials used on factory assembly lines.
d. Period Cost
Property taxes on the factory building.
Depreciation on the factory equipment.
Salaries for the night security guards for the factory building.
Explanation:
Answer:
Explanation:\
1.) What are are the advantages and disadvantages of teams?
Discussion Question( Managing Teams)
The main advantage of __________ is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.a. focused marketingb. multisegment marketingc. unidimensional marketingd. market concentratione. mass marketing
Answer:
market concentration
Explanation:
Market Concentration in finance can also be reffered to as " Seller Concentration" it can be explained as how the firms has shares in the total market, it is used to expressed how dominant a smaller firm is in the total market.
Market concentration has some advantages but it's main advantage is specialization, as it allows the firm to focus its resources toward understanding and serving a single segment.
What 4ps known as ?
Answer:
4 P's are place, price, product, and promotion
Explanation:
The four P's of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service.
Analyse two ways in which employee innovation andcreativity can be developed.
Answer:
° Ask for ideas from employees
° Provide guidance to employees
Explanation:
° Ask for ideas from employees. For an organization that wants to develop innovation and creativity of its employees, such must come up with an avenue for employees to express their ideas and then create a process internally for submission. The management may allocate time frame for such idea generation and submission; while also supporting it with incentive so that people can think beyond the norm.
° Provide guidance to employee. Generally, virtually everyone can develop an idea, however, the skills needed to making it come to reality is not common to most people. In terms of providing guidance, an innovation and creativity champion could be appointed, who will give support, encouragement, advise and directions to other employees who have developed certain ideas. The aim here is not just to develop an idea, but getting support with the right skills to getting the ideas materialized.
5) An international company is producing $50 widgets at a cost of $50,000 and is selling
them for $60,000. If it produces a 51st unit, its total sales will be $62,000 and its total cost will
be $51,500. Should the company produce the 51st unit?
6) Hibw will the following events affect the production possibility frontier of an economy?
Event A: A large fraction of the work force becomes unemployed.
Event B: The productivity of all work force doubles.
Event C: The government requires dairy farmers to destroy part of their herds.
Answer:
00
Explanation:
00
What is the difference between an authorized dealer and an agent?
Answer:
the main difference is in their commissions
Explanation:
An authorized dealer is a term to describe anyone who is independent of a particular business (company), and yet sell the products or services of the business to their customers. In such case, the authorized dealer adds their own margin to cover their costs and profit.
However, an agent is an intermediary appointed by a business to negotiate with customers on behalf of the company (business). Hence, the company or business pays the agents commissions on the sales they make.
How might a business be in violation of a truth-in-advertising law?
A. By adding surcharges in fine print
B. By claiming its product is healthy without having any scientific
evidence
C. By hiring actors to portray consumers in its commercials
D. By claiming that you'll love its product
Answer:
B
Explanation:
Apex
A business be in violation of a truth-in-advertising law is By claiming its product is healthy without having any scientific evidence.
What is truth-in-advertising?Wherever consumers see or hear an advertisement, whether on the Internet, radio, television, or elsewhere, federal law requires it to be accurate, not misleading, and backed up by scientific data where necessary.
Thus, option B is correct.
For more details about truth-in-advertising, click here
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Which of the following is NOT a benefit of setting goals?A. You can focus on important things B. You can take control of your life C. You will be more confident D. All of these
Answer:
C. You will be more confident
Explanation:
When you consistently set goals in life, it helps you greatly in many ways. For example, you become more focused in regards to what you want in life because you have already set a goal and will work towards to achieve in life. It also helps you taking control of your future. You can manage your timetable for future and all the things you want to o in your life.
However, setting goals may not help you become more confident. Confidence is something that comes from within a person. You have to work on many things to gain confidence in life. Only setting goals will not be sufficient.
Suppose the following table reflects the total satisfaction (utility) derived from eating slices of pizza. Calculate the marginal utility of each slice of pizza and answer two questions about marginal utility.a. What is the marginal utility of each slice of pizza? Instructions: Complete each of the seven yellow cells below. Enter your responses as a whole number. Indicate negative responses with a (-) negative sign.Quantity Consumed Total Utility Marginal UtilityNo slices 0 -First slice 25 Second slice 50 Third slice 75 Fourth slice 90 Fifth slice 103 Sixth slice 100 Seventh slice 90 b. Marginal utility first diminishes with slice numberc. Marginal utility first turns negative with slice number
Answer:
a)
quantity consumed total utility marginal utility
0 0 0
1 25 25
2 50 25
3 75 25
4 90 15
5 103 13
6 100 -3
7 90 -10
b) slice number 4
c) slice number 6
Explanation:
The law of marginal utility states that as the total number of units consumed increases, the utility yielded by consuming one more unit decreases.
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent, and also 13 years to maturity. Assume the interest rates remain unchanged and a $1,000 par value.
Required:
a. What are the prices of these bonds today?
b. What do you expect the prices of these bonds to be in one year?
c. What do you expect the prices of these bonds to be in three years?
d. What do you expect the prices of these bonds to be in eight years?
Answer:
a. What are the prices of these bonds today?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/26]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/26]
0.03 x (500 + 0.5MV) = 37.5 + 38.46 - 0.03846MV
15 + 0.015MV = 75.96 - 0.03846MV
0.05346MV = 60.96
MV = 60.96 / 0.05346 = $1,140.29
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/26]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/26]
0.0375 x (500 + 0.5MV) = 30 + 38.46 - 0.03846MV
18.75 + 0.01875MV = 68.46 - 0.03846MV
0.05721MV = 49.71
MV = 49.71 / 0.05721 = $868.90
b. What do you expect the prices of these bonds to be in one year?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/24]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/24]
0.03 x (500 + 0.5MV) = 37.5 + 41.67 - 0.04167MV
15 + 0.015MV = 79.17 - 0.04167MV
0.05667MV = 64.17/0.05667 = $1,132.29
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/24]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/24]
0.0375 x (500 + 0.5MV) = 30 + 41.67 - 0.04167MV
18.75 + 0.01875MV = 71.67 - 0.04167MV
0.06042MV = 52.92
MV = 52.92 / 0.06042 = $875.87
c. What do you expect the prices of these bonds to be in three years?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/20]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/20]
0.03 x (500 + 0.5MV) = 37.5 + 50 - 0.05MV
15 + 0.015MV = 87.5 - 0.05MV
0.065MV = 72.5
MV = 72.5 / 0.065 = $1,115.38
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/20]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/20]
0.0375 x (500 + 0.5MV) = 30 + 50 - 0.05MV
18.75 + 0.01875MV = 80 - 0.05MV
0.06875MV = 61.25
MV = 61.251 / 0.06875 = $890.91
d. What do you expect the prices of these bonds to be in eight years?
price of bond X:
0.03 = {37.5 + [(1,000 - MV)/10]} / [(1,000 + MV)/2]
0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/10]
0.03 x (500 + 0.5MV) = 37.5 + 100 - 0.1MV
15 + 0.015MV = 137.5 - 0.1MV
0.115MV = 122.5
MV = 122.5 / 0.115 = $1,065.22
price of bond Y:
0.0375 = {30 + [(1,000 - MV)/10]} / [(1,000 + MV)/2]
0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/10]
0.0375 x (500 + 0.5MV) = 30 + 100 - 0.1MV
18.75 + 0.01875MV = 130 - 0.1MV
0.11875V = 111.25
MV = 111.25 / 0.11875 = $936.84
What would the net value of a long straddle position be if the stock price at expiration is $35?
Answer:
$1.15
Explanation:
Calculation for the net value of a long straddle position
Using this formula
Net value of a long Straddle=(Stock price at expiration-Strike price)-Put option selling-Call option selling
Let plug in the formula
Net value of a long Straddle = ($35-$29)-$2.90-$1.95
Net value of a long Straddle=$6-$2.90-$1.95
Net value of a long Straddle=$1.15
Therefore the net value of a long straddle position will be the amount of $1.15
The importance of formal planning in organizations has grown dramatically. Companies have found that they can achieve competitive advantage through the formal six-step strategic planning process. Answer questions about how Ron Shaich and Panera Bread use this strategic process. Planning is not an informal or haphazard response to a crisis; it is a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization. Because planning is an important management function, managers at all three levels use it. To be fully effective, the organization's strategic, tactical, and operational goals and plans must be aligned. The strategic management process has six major components, beginning with the establishment of the mission, vision, and goals of the company and ending with strategic control.
The narrator describes how someone creates the mission while someone else identifies the steps that make the mission happen. The steps are known as what?
a. Top of Form
b. strategic vision
c. strategy stepping
d. strategic mapping
e. strategic controls
f. strategy implementation
Explanation:
Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.
Underhill Incorporated manufactures and sells two products: Product Y1 and Product Y0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appears below: Direct Direct Expected Labor Labor Production Per Unit Hours Product Y1 300 6.0 1,800 Product Y0 500 9.0 4,500 Total direct labor-hours 6,300The direct labor rate is $27.50 per DLH. The direct materials cost per unit is $106.10 for Product Y1 and $168.40 for Product Y0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Activity Overhead ---- EXPECTED ACTIVITY -----Activity Cost Pool Measures Cost Product Y1 Product Y0 TotalLabor-related DLHs $151,263 1,800 4,500 6,300Production orders Orders $43,253 300 400 700Order size MHs $863,478 4,900 5,000 9,900Total $1,057,9941. What is the overhead applied to each unit of Product Y1 under activity-based costing?2. If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, what is the overhead cost that would be applied to each unit of Product Y1?
Complete Question
The complete question is shown on the first uploaded image
Answer:
The solution and calculations is shown on the second, third uploaded image
Explanation:
Identify the two basic categories of items on an income statement.
Answer:
RevenueExpensesExplanation:
The Income statement is used to check the financial performance of a company within a period by calculating the net income or losses made.
It does so by subtracting the expenses incurred from the revenue realized. These two categories are therefore the most basic items in the income statement and will always appear in them.
Examples of Revenue sources include; Sales and Service Revenues.
Examples of Expenses include; Advertising, Salaries and Depreciation.
Neon Light Company has $1,000,000 in assets and $600,000 of debt. It reports net income of $100,000.A) What is the return on the assets?
B) What is the return on the stockholders' equity?
C) If the firm has an asset turnover ratio of 3 times, what is the profit margin (return on sales)?
Answer:
a. 10%
b. 25%
c. 3.3%
Explanation:
return on the assets = net income / total assets = $100,000 / $1,000,000 = 0.1 = 10%
return on the stockholders' equity = net income / total equity
Equity = Assets - liabilities = $1,000,000 = $600,000 = $400,000
return on the stockholders' equity = $100,000 / $400,000 = 0.25 = 25%
profit margin = Net income / Revenue
asset turnover ratio = Revenue / total assets
3 = Revenue / $1,000,000
Revenue = $1,000,000 x 3 = $3,000,000
$100,000 / $3,000,000 = 0.033 = 3.3%
Williams Company computed its cost per equivalent unit for direct materials to be $1.90 and its cost per equivalent unit for conversion to be $3.85. A total of 245,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 26,000 equivalent units of direct materials and 26,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:
Answer:The amount that should be reported in ending Work in Process Inventory is:
=$149,500
Explanation:
Work-in-process inventory is materials that are unfinished or partially completed in a production process.
Work in Process inventory = Direct materials cost+ conversion cost
= (equivalent units of direct materials x direct material cost per unit) + (equivalent units of direct materials x conversation cost per unit )
=26,000 x $1.90 + 26,000 x $3.85
$49,400 + $100.100
=$149,500
The amount that should be reported in ending Work in Process Inventory is:
=$149,500
Answer:1408750
Explanation:
Direct Materials 245,000 x 1.90 = 465500
Conversión 245,000x3.85= 943250
Total transferred to finished goods = 465500+943250=1408750
What are the five primary factors of production?
Inferring Values Using the Income Statement and Balance Sheet Equations Review the chapter explanations of the income statement and the balance sheet equations. Apply these equations in each of the following independent cases to compute the two missing amounts for each case. Assume that it is the end of the first full year of operations for the company. TIP: First identify the numerical relations among the columns using the balance sheet and income statement equations. Then compute the missing amounts. Independent Total Total Net Total Total Stockholders' Cases Revenues Expenses Income (loss) Assets Liabilities Equity A A $100,000 82,000 $150,000 70,000 $ B 80,000 12,000 112,000 60,000 C 80,000 86,000 104,000 26,000 D 50,000 13,000 22,000 77,000 E 81,000 (6,000) 73,000 28,000
Answer:
The solution and the calculation is shown on the first uploaded image
Explanation:
A company's trial balance included the following account balances: Accounts payable $19,287 Accounts receivable 81,416 Cash 73,404 Income tax payable 3,592 Inventories 25,896 Note payable, due in two years 1,789 Equipment 54,928 Stockholders' equity 203,608 Supplies 5,592 Wages payable 12,960 What is the amount of Total Assets on the Balance Sheet
Answer:
Total Assets on the Balance Sheet is $241,236.
Explanation:
Total Assets would include the total from the Non Current Assets Section and the total from the Current Assets Section of the Balance sheet.
Here is an extract of the Assets Section of the Balance Sheet :
Assets
Non-Current Assets
Equipment $54,928
Total Non-Current Assets $54,928
Current Assets
Inventories $25,896
Supplies $5,592
Accounts receivable $81,416
Cash $73,404
Total Current Assets $186,308
Total Assets $241,236
Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, she earned wages of $126,000. She doesn't itemized deductions, so she will take the standard deduction and her personal exemption to calculate 2013 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe to the IRS for taxes
Answer:
$26,898.25
Explanation:
Jenna'a taxable ordinary income = $126,000 - $6,100 (standard deduction) - $3,900 (personal exemption) = $116,000
ordinary income taxes = $17,891.25 + [($116,000 - $87,850) x 28%] = $25,773.25
capital gains taxes = $7,500 x 15% = $1,125
total tax liability = $25,773.25 + $1,125 = $26,898.25
Men and women tend to differ somewhat in their communication styles. Which of the following statements regarding those differences is correct?a. Women focus more on competition in their communication; men on cooperation.b. Women use metaphors from the home; men from work.c. In meetings,women tend to withhold their opinions more than men.d. Men focus on requests in their communication; women on orders.
Answer: In meetings, women tend to withhold their opinions more than men.
Explanation:
Communication is simply the process of exchanging information between the individuals by using signs, symbols of behavior, symbols, or signs. It should be noted that nonverbal gesture, such as the OK symbol that is made in some countries, could be found to be offensive somewhere else.
Men and women tend to differ somewhat in their communication styles. In meetings, women tend to withhold their opinions more than men.
Ken pays $4803.60 for a 3-year annuity of $2,000 per year. What is the Internal Rate of Return?
Answer:
the internal rate of return is 12%
Explanation:
The computation of the internal rate of return is shown below:
Year Particulars Amount
0 Initial cost -$4,803.6 (C2)
1 Year 1 cash inflows $2,000 (C3)
2 Year 2 cash inflows $2,000 (C4)
3 Year 3 cash inflows $2,000 (C5)
IRR 12.00%
Use this below formula
=IRR(C2:C5)
Hence, the internal rate of return is 12%
Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) owner’s equity:_______.
a. accounts payable
b. cash
c. fees earned
d. land
e. supplies
f. wages expense
Answer:
a. accounts payable -liability
b. cash -asset
c. fees earned -owner’s equity
d. land -asset
e. supplies -asset
f. wages expense- owner’s equity
Explanation:
Accounts payable is an obligation payable to the supplier,hence,it is a liability.
Cash is an asset of the business which is used in purchasing other assets such as inventory or trading securities.
Fees earned would increase retained earnings which is an integral part of the owner's equity
Land is a long-lived asset whose benefits would be derived in more than one year.
Supplies are assets of the business which are used in the business.
Wages expense reduces retained earning in owner's equity
Which of the following is not an example of the bricks-and-clicks e-tailing business model? A. Walmart.com B. JCPcnney.com C. Drugstore.com D. Staples.com
Answer:
C
Explanation:
bricks-and-clicks e-tailing business model are businesses that have physical stores and also have an online store.
E-tailing business models only exist online
Which of the following is perhaps the main advantage associated with the use of advertising?
A) It takes little time to develop an advertising campaign.
B) The total dollar layout in advertising is usually low.
C) It is an extremely cost efficient way to reach a large number of people.
D) It can quickly convey a large amount of technical information.
E) It can be quite memorable.
Answer:
C) It is an extremely cost efficient way to reach a large number of people.
Explanation:
Advertising refers to a marketing strategy in which the company able to promote its goods and services in a various ways like in television, social media, print media, etc so that it could create awareness among the people
According to the given options, the option C is correct as it derives the actual meaning and motive of advertising that it is cost efficient plus it also reaches to a large number of people.
hence, the correct option is c.
A group of investors are discussing the formation of a new property and liability insurer. The proposed com-pany would market a new homeowners policy that combines traditional homeowner coverages with unem-ployment benefits if the policyholder becomes involun-tarily unemployed. Each investor would contribute at least $100,000 and would receive a proportionate interest in the company. In addition, the company would raise additional capital by selling ownership rights to other investors. Management wants to avoid the expense of hiring and training agents to sell the new policy and wants to sell the insurance directly to the public by selective advertising in personal finance magazines.
A. Identify the type of insurance company that best fits the above description.
B. Identify the marketing system that management is considering adopting.
Answer:
A. Stock insurance company
B. Direct response system marketing strategy
Explanation:
A. A stock insurance company has the stock holders or owners as investors and not policyholders. Profit is made when the stock increases in value over time. In this given question raising additional capital only happens In a stock insurance company.
B. Because the management do not want hiring of agents and personalized selling, they can do this through direct response system marketing strategy. This policy is sold directly to customers through various system such as telemarketing or through the media