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NEW QUESTION: 1
A firm can pursue a differentiation strategy on the basis of
I). its product.
II). method of delivery.
III). economies of scale.
IV). production process.
V. marketing approach.
VI). can charge a higher price while attempting to retain cost parity with its competitors.
A. I, II, III, V, VI.
B. I, II, V, VI.
C. All of them.
Answer: B
NEW QUESTION: 2
An all-equity financed company currently generates total revenue of $50 million.
Its current profit before interest and taxation (PBIT) is $10 million.
Due to difficult trading conditions, the company expects its total revenue to be constant next year, although some margins will reduce.
It forecasts next year's PBIT will fall to 18% on 40% of its revenue, but that the PBIT on the other 60% of its revenue will be unaffected.
The rate of corporate tax is 20%.
What is the forecast percentage reduction in next year's Earnings?
A. Reduction of 4.0%
B. Reduction of 2.0%
C. Reduction of 0%
D. Reduction of 0.8%
Answer: A
NEW QUESTION: 3
A. Option E
B. Option C
C. Option B
D. Option A
E. Option D
Answer: A,B,E