A firm successfully implementing a differentiationstrategy would expect b. to charge premium prices.
A differentiation strategy is a business strategy that focuses on creating products or services that are perceived by customers as being unique and valuable. This can be done by offering products or services with features or benefits that are not available from competitors, or by offering products or services that are of higher quality than those of competitors.
When a firm successfully implements a differentiation strategy, it can charge premium prices for its products or services. This is because customers are willing to pay more for products or services that they perceive as being unique and valuable.
Option B is correct.
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Answer:
The correct answer is letter "B": Boycott.
Explanation:
A boycott is a denial to start or continue a commercial relationship (or from any other kind) with an individual or organization. This because of committing a fault that the involved parties disagree in allowing. Stop purchasing or selling a product to a company, group, or country is one of the most common practices of a boycott.
Usually, boycotts are pressure measures in an attempt to correct an action that boycotters consider improper.
B) High unemployment
C) Low GDP
D) Peak production
Answer:
A) higher interest rates ; largely offset by the lower interest rates
Explanation:
If the government carries on an expansionary monetary policy, it will lower interest rates and increase the money supply in an attempt to increase aggregate demand. If at the same time it increases the interest rate it will pay for borrowing money (e.g. increase treasury bills' interest rates), that would make no sense since one policy would offset the other.
A government cannot increase the money supply and then increase the interest rates on treasury bills since that would lower the money supply again.
B) Calculate the current account balance for 2001.
C) Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
Answer:
A) Deficit 30 , B) Deficit 20 , C) Forex inflow is at positive side, forex outflow on negative side
Explanation:
A) Merchandise deficit is the difference between value of exported visible goods & imported visible goods.
UK 2001 trade deficit = Goods export value - Goods import value
£192 - 225 = - 30
So, Trade Deficit = 30
B) Current account balance is the difference between : forex inflow by goods & services exports, unilateral transfers, factor incomes received and- forex outflow by goods & services imports, unilateral transfers, factor incomes paid.
Current account Balance = (Goods & services export value + Income & transfer payments from abroad) - (Goods & services import value + Income & transfer payments to abroad)
= (192 + 77 + 140 + 16) - (225 + 66 + 131 + 23)
-20 [Deficit]
C) An item causing foreign exchange inflow leads to positive side on current account balance (eg exports). An item causing foreign exchange outflow leads to negative side on current account balance (eg imports)
Answer:
The equation states that Assets = Liabilities + Equity.
The equation applies to all transactions and events.
The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.
The relation of assets, liabilities and equity is reflected in the equation.
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The statement accurately describes the fundamental concept of the accounting equation, which states that the total assets of a business must equal the total liabilities and equity.
The correct statements that explain how the accounting equation applies to businesses are:
A. **The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.**
It highlights the balance between what a business owns (assets) and what it owes (liabilities and equity).
E. **The equation states that Assets = Liabilities + Equity.**
Explanation: This statement is a direct representation of the accounting equation.
It shows the relationship between a company's assets (what it owns), its liabilities (what it owes to external parties), and its equity (the residual interest of the owners).
This equation must always hold true in accounting.
The other statements (B, C, and D) do not accurately describe the accounting equation or its application to businesses:
B. The equation does not apply to all transactions.
It provides a framework for understanding the relationship between assets, liabilities, and equity, but individual transactions may involve specific accounts within these categories.
C. The equation presented here is not an accurate representation of the accounting equation.
Revenues and expenses are related to the income statement, while the accounting equation relates assets, liabilities, and equity.
D. This statement is not accurate.
Total revenues do not always equal total liabilities and assets; they are related to the income statement and do not directly affect the balance reflected in the accounting equation.
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