An analysis of the cash conversion cycle should also help Kaj understand what has been happening to the operations of Scandi. Prepare an analysis of the average conversion periods for the three components of the cash conversion cycle for 2019-2020 and 2020-2021. Explain was has happened in terms of each component of the cycle

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Answer 1

Analyzing the average conversion periods for the three components of the cash conversion cycle for 2019-2020 and 2020-2021 will provide insight into Scandi's operations.

The cash conversion cycle consists of three components: the average collection period, the average inventory period, and the average payment period. By analyzing the average conversion periods for these components for 2019-2020 and 2020-2021, we can gain insights into Scandi's operations.

The average collection period measures the time it takes for Scandi to collect payments from its customers. An increase in this period could indicate issues with accounts receivable management or customer payment delays.

The average inventory period reflects how long it takes for Scandi to convert its inventory into sales. An increase in this period might suggest inventory management challenges, such as overstocking or slow-moving inventory.

The average payment period measures the time it takes for Scandi to pay its suppliers. An increase in this period may indicate delayed payments or strained relationships with suppliers.

By comparing the average conversion periods between the two periods, we can identify any changes and understand what has happened in each component of the cash conversion cycle. This analysis will provide valuable insights into the efficiency of Scandi's operations and help identify areas for improvement or potential challenges that need to be addressed.

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Related Questions

Changes in taxes and spending that happen without actions by the government are called.

Answers

Changes in taxes and spending that happen without actions by the government are called automatic stabilizers.

How Do Automatic Stabilizers Work?

Automatic stabilizers are a sort of fiscal policy intended to counteract changes in a country's economic activity through the course of their regular operation without additional, timely approval by the government or policymakers.

The most well-known automatic stabilizers include gradually graduated corporate and individual income taxes, as well as transfer programs like welfare and unemployment insurance. Because they act to smooth economic cycles and are automatically initiated without further government intervention, automatic stabilizers are so named.

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Honda places several motorcycles in ""pods"" in order to load them efficiently using forklifts. this system of materials handling is called?

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The system of materials handling called a unit loading is used by Honda in placing its several motorcycles in ""pods"" in order to load them efficiently using forklifts.

What is an unit loading?

This refers to the size of an assemblage into which a number of individual items are combined for ease of storage and handling.

For instance, in the warehouse loading, the pallet load represents a unit load which can be moved easily with a pallet jack, forklift truck and the container load represents a unit for shipping purposes.

Hence, the system of materials handling called a unit loading is used by Honda in placing its several motorcycles in ""pods"" in order to load them efficiently using forklifts.

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Which of the following is considered the most likely source of cyberattacks, based on a poll of global executives, information security managers, and IT leaders

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The most likely source of cyberattacks, based on a poll of global executives, information security managers, and IT leaders is: careless insider.

What is cyberattacks?

Cyberattacks can be defined as the way in which a person or a hacker gain unauthorized access to sensitive  or confidential information or information system.

Hence, careless insider is the most likely source of cyberattacks and this can occur due to carelessness or negligent leading to cyberattacks or unauthorize access to confidential information.

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What is the rate of average annual net income to the initial investment or average investment (book value) called?

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The rate of average annual net income to the initial investment or average investment (book value)  is called accounting rate of return.

The accounting rate of return (ARR) is a formula which reflects the percentage rate of return expected on an investment or any asset,   when compared to the initial investment's cost or in other words the book value of asset.

The ARR formula divides an asset's average revenue by the company's initial investment to take the results of the ratio or return that can be expected over the lifetime of an asset or project by a person.

ARR do not consider the time value of money or cash flows, which can be an integral part of maintaining a business.

The accounting rate of return is a capital budgeting method which is  useful if any person wants to calculate an investment's profitability quickly.

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Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the?

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Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the service industry.

Service industry is an industry in the part of the economy that creates services rather than tangible objects. These service industry provides a service but does not produce anything.

The industries based on service are an important part of society for a variety of reasons, including- delivering essential services to the public. Pet care salons, skin clinics, and day care centers are all examples of businesses operating in the service industry. These services too generate income.

Hence, service industry play an important role in society.

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Which of the following actions constitutes the unauthorized practice of law if performed by a real estate licensee who isn't a licensed attorney

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Drafting a legal contract using legal language is what constitutes unauthorized practice of law by a person that is not a licensed attorney.

Who is a licensed attorney?

This is the description that is given to a person that is licensed to act or practice the act of law in the United States. In order to do this, one must have gone through law school.

Hence the drafting of a legal practice by a person that is not a licensed attorney can be seen to be an unauthorized practice in the United States.

Without a proper law license, it is a crime to act as a legal representative in the nation. The penalty for this may lead to issues that may cause jail term for the person. Such a person is going to face both criminal and civil law.

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Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.

Answers

The budget for the department, assuming that it uses flexible budgeting is: $89,000.

Total Department Costs

First step is to calculate the direct labor cost

Direct Labor =2350 hours x( $72,000/2400)

Direct Labor=$70500

Second step is to calculate the Total Department Costs

Total Department Costs=$70,500+$18,500

Total Department Costs=$89,000

Therefore the budget for the department, assuming that it uses flexible budgeting is: $89,000.

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A local chamber of commerce plans a seminar on ""the social responsibility of business in our community. "" what does the term reference?.

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A local Chamber of Commerce plans a seminar on “the social responsibility of business in our community.” What does that term reference?

( The expectations that the community imposes on firms doing business inside its borders.) correct answer of your question ✅

All choices can have unintended consequences. When those outcomes affect someone who had no part in the initial choice, what is it called?

Free market
Free resource
Eminent domain
Externality

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When outcomes affect someone not involved in the initial choice, it is known as an externality.

What is an externality?

Externality is when production or consumption activities have an effect on people who are not part of the consumption or production activity. Externality can be positive or negative.

Positive externality occurs when the benefits to third parties not involved in production is greater than the cost. An example of an activity that generates positive externality is research and development.

Negative externality occurs when the cost to third parties not involved in production is greater than the benefits. An example of an activity that generates negative externality is pollution.

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Many japanese car firms are willing to give up immediate profits for long-term penetration of the market. this is a pricing objective known as:_______

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Many Japanese automakers are prepared to forgo short-term gains in exchange for market penetration over the long run. This price goal is referred to as managing for long-term profits.

What are the pricing objectives?

The goals that direct how your company sets prices for your product or service are referred to as pricing objectives. Both new and existing customer pricing can and should follow these goals. The guidance provided by pricing objectives is essential for modifying prices over time to achieve your goals.

Pricing goals can include things like maximizing profits, boosting sales volume, matching competitors' prices, discouraging competitors, or even merely surviving. To successfully accomplish your company objectives, you must use a separate price-setting technique for each pricing purpose.

The overall pricing process is guided by the objectives or aims of pricing. Pricing starts with figuring out what your goals are.

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In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. If this is the only difference between pretax income and taxable income, Casa would record a

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Tax Expense- (Debit)                        $40,000

To Taxes Payable (Credit)                                        $36,000

To Deferred Tax Liability (Credit)                               $4,000

What is the difference between deferred tax asset and deferred tax liability?

A deferred tax liability shows a future tax requirement or payment due, whereas a deferred tax asset shows a financial advantage. People who have standard 401(k) plans, for instance, can contribute to their accounts using pre-tax income.

Why is depreciation deferred tax liability?

A delayed tax liability typically arises when the government's accounting practices diverge from those of a conventional business. One frequent illustration is the depreciation of fixed assets. Companies often use a straight-line depreciation approach to disclose depreciation in their financial accounts.

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The correct question is:

In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. Casa's pretax income for the year was $100,000, and its taxable income was $90,000. If this is the only difference between pretax income and taxable income, the journal entry to record tax expense for the year would include which of the following entries? (Select all that apply.)

Which of the following types of research asks customers to provide verbatim stories about their service encounters that are both satisfying and dissatisfying?

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Critical Incident Studies research asks customers to provide verbatim stories about their service encounters that are both satisfying and dissatisfying.

The critical incident technique (CIT) is a studies approach in which the studies player is asked to consider and describe a time when a behavior, action, or prevalence impacted (either definitely or negatively) a precise outcome (as an example, the accomplishment of a given assignment).

An instance of the critical incidents method is an interview being taken of the incumbent of the job to recognize the data of the activity. Those records are collected by way of various techniques like questionnaires and surveys as well and can be used for organizational improvement and market studies.

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A coworker asks you for advice on how to communicate a strict deadline in a request message. What advice would you give

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I would advice to set an end date to take action in the closing for strict deadline. For any business concerned with growth, which is almost every business, deadlines are crucial. Every organization strives to improve upon itself.

The impact of deadlines on a company's profit curve is significant. This is so because the main element driving a company's success is time management. Any workplace culture will keep you on the clock and under pressure to get the most out of the office environment. This method does not, however, always succeed because those who cannot handle strict deadline may just quit their jobs.

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If a firm's ROA and ROE are equal, it can be concluded that the firm is a. losing money. b. liquid enough to pay some extra dividends. c. financed by all equity. d. financed by a high proportion of debt.

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The correct option is (c); financed by all equity.

What is ROA of a firm?

Return on assets (ROA) is a metric for gauging how effectively a business uses its assets to make money.

Some key feature of return of assets are-

ROA is a metric that managers, analysts, and investors use to assess a company's financial standing.This profitability ratio illustrates the rate of growth in profits produced by an organization's assets.The corporation is doing a good job of boosting its profits with each investment dollar it makes if its ROA increases over time. A declining ROA is a warning indicator that the company may be in jeopardy since it may have overinvested in assets that have failed to generate revenue growth.What is ROE of a firm?

The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE).

Some key features of return equity-

A high ROE is desired by investors since it shows that the company is making good use of its resources. A return on equity of between 15 and 20 percent is typically seen as favorable. You may determine a company's efficiency in utilising its investors' funds to produce profits by comparing a public company's net earnings to the equity stakes of its shareholders. In other words, ROE displays, as a percentage, the amount of profit the company makes from each dollar of shareholder ownership.

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The major feature of zero-based budgeting is that it?

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The correct option is (B); Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated.

What is zero-based budgeting (ZBB)?

Zero-based budgeting (ZBB) is a budgeting strategy that entails creating a fresh budget from scratch each time, or from "zero," as opposed to beginning with the budget from the prior month and making adjustments as necessary.

Key features of zero-based budgeting are-

The zero-based budgeting (ZBB) methodology helps companies match their spending to their strategic objectives. According to this methodology, firms must create their yearly budget from scratch each year in order to ensure that all of its components are affordable, pertinent, and capable of generating increased savings.With zero-based budgeting, each budgeting cycle is started at zero. This strategy requires explanation of all expenses, not just new ones. The quickest path to achieving your financial objectives is still with a thorough spending strategy.

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The correct question is-

The major feature of zero-based budgeting (ZBB) is that it

A. Takes the previous year’s budgets and adjusts them for inflation.

B. Questions each activity and determines whether it should be maintained as it is, reduced, or eliminated.

C. Assumes all activities are legitimate and worthy of receiving budget increases to cover any increased costs.

D. Focuses on planned capital outlays for property, plant, and equipment.

Sensitivity analysis: Group of answer choices is affected primarily by the interrelationships between project variables. indicates which variable(s) need to be most closely monitored. is more difficult to conduct than simulation analysis. provides its user with the rate of return that corresponds to the project's IRR. provides limited information and therefore is rarely used in practice.

Answers

The sensitivity analysis process indicates which variable(s) need to be most closely monitored.

What is sensitivity analysis?

This is a form of financial analysis where various variables are tested for change in the event that market conditions change.

This allows analysts to see which variables should be paid attention to in case of market change so that they can take corrective steps.

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Allentown sits on the river, and its many bridges need repair. which police power is allentown likely to use in order to fund improvements to its bridges?

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Taxation is the correct answer. Construction of a planned development project is either permitted or disallowed based on the results of a development approval process. What a development approval process can or should contain is open to a great deal of legal and political entitlement.

A development project is frequently referred to as an entitlement process since authorization to move on with development is known as an entitlement. They make the decision about the granting of entitlement for projects.

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The broker has seven different escrow accounts because he wants to maintain good relationships with each of the different banks. These relationships will help the broker get financing for some of the builders with whom he works. The broker is a signatory on all the accounts and he maintains no more than $1000 of his own money in each account. He reconciles all of the accounts no more than 30 days from the last reconciliation. Can the broker have this many accounts

Answers

Yes, a  broker can have many accounts.

Who is a broker?

A broker can be defined as someone who deals in shares or someone who buy and sell shares to investors.

A broker can do the following:

A broker can  have one escrow accountA broker can maintain  or be  in charge of many escrow accounts.A broker must  tend to reconcile the account or  carryout reconciliation on the account no higher than 30 days from the last reconciliation.

Therefore a broker can have many accounts.

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When Ocean Spray decided to make its Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

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Ocean Spray was involved in deciding on a distribution strategy when it decided to make its Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines.

What exactly is a distribution strategy?

The method utilized to deliver commodities, services, and products to consumers or end users is known as a distribution strategy. Depending on the product and its distribution requirements, maintaining a simple and efficient method of getting your goods and services to people frequently results in repeat business.

What is an example of a distribution strategy?

Clothing from several companies, for instance, might be supplied in a chosen manner. Instead of putting its products in a variety of retailers like Walmart or Target, a company like Gucci might decide to distribute its goods to its own stores and a few carefully chosen department stores.

Why is it vital to have distribution strategies?

By enhancing customer interactions with your organization, distribution strategy contributes to increased client satisfaction and repeat business. Additionally, it might assist you in streamlining your company to increase efficiency.

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If a contingency in a purchase agreement is not fulfilled despite a good faith effort to fulfill it, the party who benefits from the contingency may?

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If the purchase agreement is not fulfilled or if the contingency isn't always fulfilled, terminate the settlement or eliminate the contingency and complete the acquisition besides.

There are contingencies in nearly every actual estate contract. they are there to guard the buyer and the vendor. If the contingencies aren't met, there might be a breach inside the settlement, and the transaction may want to fail to shut.

The contingency specifies a release date on or before which the purchaser ought to notify the vendor of any troubles with the appraisal. otherwise, the contingency might be deemed happy, and the customer will now not be able to back out of the transaction.

A buy settlement is a sort of agreement that outlines phrases and conditions associated with the sale of products. As a legally binding agreement between customer and vendor, the agreements commonly relate to buying and promoting goods in place of offerings. They cover transactions for nearly any sort of product.

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A perfectly competitive firm faces a __________ demand curve. Group of answer choices upward sloping downward-sloping perfectly elastic perfectly inelastic

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A perfectly competitive firm faces a downward-sloping demand curve.

What is demand curve?

It is a visual illustration of the connection between product pricing and demand-side quantity. The graph is built with amount demanded on the horizontal axis and price on the vertical axis.

Demand curve has two types-

individual demand curve: The quantity that a specific household wants at different prices is represented by a demand curve for that particular household. The graphic representation of the individual demand schedule is another way to describe it. It can be created by analyzing consumer behavior in response to price changes.market demand curve: The total of each individual demand curve for a certain good on the market constitutes the market demand curve. It displays the quantity of the commodity that is demanded at various pricing points. The market demand curve has a negative, or downward, slope because quantity requested declines as price rises.What is downward-sloping demand curve?

A demand curve demonstrating how demand declines as price rises.

The price elasticity of demand is always negative for a downward-sloping demand curve since the price and quantity requested move in the opposite directions.

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Retail Division $155,800 $550,000 Commercial Division 134,000 330,000 Internet Division 146,400 540,000 Assume that management has established a 10% minimum acceptable rate of return for invested assets. a. Determine the residual income for each division.

Answers

The Residual Income for each division:

Retail Division = $4,95,000

Commercial Division = $2,97,000

Internet Division = $4,86,000

                        Retail Division   Commercial Division   Internet Division

A. Operating Income   $155,800                 $134,000                  $146,400

B. Minimum acceptable operating income as a % of invested assets:

                        Retail Division   Commercial Division   Internet Division  

Invested assets            $550,000                $330,000         $540,000

(Invested assets x 10%) =  $55,000                 $33,000           $54,000            

C = A - B Residual Income =$4,95,000       $2,97,000       $4,86,000

What is Residual Income?

Residual Income refers to a calculation that provides the amount of money leftover that a company or individual has after all expenses have been paid. The amount of money that is left over after all expenses are covered is typically referred to as residual income, profit, net income, or earnings.

One specific type of meaning for residual income is similar to the terms passive income or residual pay—in that it can represent income earned on a continual basis, not tied to specific amounts of time, and not requiring active work to generate.

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The Securities and Exchange Commission is the federal agency that has responsibility for regulating ______.

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The Securities and Exchange Commission is the federal agency that has responsibility for regulating "The federal agency that responsibility for regulating the various stock exchanges." This is further explained below.

What is Securities and Exchange Commission (SEC) ?

Generally, The Securities and Exchange Commission (SEC) is an independent federal agency that is led by a five-member commission that is comprised of a Chairman and four Commissioners who are appointed by the President and confirmed by the U.S. Senate. The Chairman of the Commission serves as the agency's chief executive officer.

In conclusion, The Securities and Exchange Commission is the federal agency that is in charge of regulating the different stock exchanges. This duty falls within the agency's jurisdiction because of its constitutional mandate.

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A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

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An income statement is a summary of a firm's revenues and expenses during a specified accounting period, such as a year. An income statement is a financial statement that lists the revenue and expenses of the company. This document can be used by the business owners to determine whether their strategies were successful.

Additionally, it displays a company's profit or loss over a specific time frame. The income statement, along with the balance sheet and cash flow statement, aids in your comprehension of your company's financial situation. Additionally, it demonstrates the revenues of the plans the company made at the start of a certain fiscal year.

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What are three key pieces of information that you can retrieve from the new car labels?.

Answers

The  three key pieces of information that you can retrieve from the new car labels are: exterior and interior color, engine and transmission combination, the model year and trim level of the vehicle.

What is labels?

Labels can be defined as a paper attach to a products or an item that contain information which help to describe a  products.

Them three key pieces of information that a person can tend to  retrieve from the new car labels are:

Engine and transmission combinationExterior color and interior colorCar model year and trim level of the vehicle

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_____ is a series of activities designed to align and improve individual performance to drive organizational results.

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When a series of activities are designed to align and improve the individual performance of a company so as to drive organizational results, this is performance management.

What is performance management?

Performance management refers to the various actions that a company uses to ensure that its employees are productive enough to meet the results demanded by the organization.

These actions and activities can range from testing employees on the key productivity matrices of their work, to installing new lights and replacing old ones if it means improving performance.

In other words, performance management is a very important part of a business as it drives production which then leads to more goods and services being available for sale, which leads to more revenue, and higher profit.

In conclusion, performance management involves all activities that were made to ensure that employees can drive organizational results.

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On his first project assignment as the project manager, the project manager encounters disagreements among highly technical team members. how would the project manager best deal with the conflict?

Answers

The  project manager can best deal with the conflict by: Listening to the differences type  of opinions giving to him , He should encourage logical discussions, and to facilitate an agreement.


What is a project manager?

A project manager can be defined as someone whose roles and responsibilities is to execute a project or to ensure the successful completion of a project.

Based on the given scenario  if the project manager encounters disagreements among highly technical team members. The  project manager can best deal with the conflict by doing the following:

Listening to the differences type  of opinions  or advice giving to him.He should encourage logical discussions.He should  facilitate an agreement.

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A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product. Multiple choice question. franchise

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(An) Entrepreneurial team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

More about Entrepreneurial team:

A group of people who work together to make a venture successful is known as an entrepreneurial team. It is primarily led by the business owner or manager in charge of assembling the team. The teams formed in an entrepreneurial venture are typically for achieving the belief that there is no sure-shot success formula

They have to be different in skills and talents that have to be learned over a period of time. The entrepreneurial team must have faith in their goods or services so that they can run a long-term initiative for the company while also keeping good relations with their clients, markets, and investors.

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According to the income effect, when the price of automobiles rises, people buy fewer automobiles because.

Answers

The purchasing power of their income is reduced.

What Is the Effect of Income?

In microeconomics, the income impact is the shift in demand for a good or service brought on by a change in a consumer's purchasing power as a result of a change in real income. An increase in salary, for example, or a drop or rise in the cost of an item that is being purchased can produce this adjustment or free up existing income.

Examples of the Income Effect:

Think of a customer who typically buys a low-cost cheese sandwich to eat for lunch at work but occasionally treats themselves to a pricey hot dog. When hotdogs are more expensive relative to cheese sandwiches, people may feel as though they can't afford to treat themselves to a hotdog as frequently because the greater cost of their regular cheese sandwich reduces their real income.

In this instance, even though the price of the hotdog remains unchanged, the income effect outweighs the substitution effect, increasing demand for the cheese sandwich while decreasing demand for the hotdog, a regular commodity that might be substituted.

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marquis suites shows movies in a living room atmosphere with comfortable chair and food and beverage service it deliverately chares more than otehr theaters for ths ecpierence

Answers

The different pricing strategies are matched with the best scenarios below.

What are pricing strategies?When selling a product or service, a company can employ a number of pricing tactics. Senior executives must first assess the company's price position, pricing segment, pricing capacity, and competition pricing reaction strategy before determining the most successful pricing strategy for the company.

The scenario to the strategy it best illustrates is shown below:

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

Most Suitable Pricing Strategy: Bundling

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

Most Suitable Pricing Strategy: Competition-based pricing

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

Most Suitable Pricing Strategy: Everyday low pricing (EDLP)

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

Most Suitable Pricing Strategy: High-low pricing

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

Most Suitable Pricing Strategy: Penetration pricing

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

Most Suitable Pricing Strategy: Price leadership

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

Most Suitable Pricing Strategy: Psychological pricing

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

Most Suitable Pricing Strategy: Skimming price

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

Most Suitable Pricing Strategy: Target costing

Therefore, the different pricing strategies are matched with the best scenarios.

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Complete question:

Decisions about pricing strategies should be set in conjunction with other marketing decisions about product design, packaging, branding, distribution, and promotion. All these marketing decisions are interrelated. Prices must be related to the cost of producing the product and prices are usually set somewhere above cost. But price and cost aren't always related. There are three major approaches to pricing strategy: cost-based, demand-based (target costing), and competition-based. Other pricing strategies include skimming price strategy, penetration strategy, everyday low pricing (EDLP), high-low pricing strategy, bundling, psychological pricing, and demand-oriented pricing. Match each scenario to the strategy it best illustrates.

1. When the Mays family went to Europe, they used a travel agent who worked out a trip that included airfare, hotels, and some tours all for one price.

2. Marquis Suites shows movies in a "living room" atmosphere with comfortable chairs and food and beverage service. It deliberately charges more than other theaters for this experience.

3. Chad is a do-it-yourself guy. He shops at Home Depot because, although they don’t usually run sales, he knows the store will offer the lowest price around on the tools he needs.

4. A major national retailer charges "full retail" for most of the lines it carries but runs "special sales" during which the company lowers its price.

5. When Walmart enters a new geographic area, the company undersells its more well-established competitors and eventually raises its prices once it has a loyal customer base.

6. When Aaron was looking for mortgage lenders, he noticed that one major lender lowered their rates, and several others did the same within a few days.

7. Larry Dietzel, a real estate agent, advised his clients to price their home at $199,900 when they listed with his agency.

8. Overture Audio home theater systems can run as high as $100,000 but there are only a few companies offering the systems.

9. Toyota’s approach to entering the U.S. market was to set a certain net profit margin, then determine what price the company had to offer to get Americans to buy its cars instead of domestic cars.

A. Psychological pricing

B. Bundling

C. Target costing

D. Penetration pricing

E. High-low pricing

F. Competition-based pricing

G. Price leadership

H. Skimming price

I. Everyday low pricing (EDLP)

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