80.2K

Verified Solution

Link Copied!

50. In markets characterized by a high elasticity of demand there will be downward pressure of prices, over time: a) True b) False 51. The statement: "Create a space in the market which is unique to you -avoid costly attributes but create product with attractive attributes to attract customers, is a: a) "Blue Ocean" Strategy b) "Red Ocean" Strategy c) "Pink Ocean" Strategy d) "Small Pond" Strategy e) None of the Above 52. Which of the following statement(s) is (are) correct and imply that Degree of Financial Leverage is a form of Elasticity a) Relative Change in EPS associated with a relative change in Sales b) Relative Change in EPS associated with a relative change in EBIT c) Relative Change in EBIT associated with a relative change in Sales d) Relative Change in EBIT associated with a relative change in Sales e) None of the above 53. Which of the following statement(s) is (are) correct and imply that Degree of Operating Leverage is a form of Elasticity: a) Relative Change in EPS associated with a relative change in Sales b) Relative Change in EPS associated with a relative change in EBIT c) Relative Change in EBIT associated with a relative change in Sales d) Relative Change in EBIT associated with a relative change in Sales e) None of the above 54. Financial Analyst can compute Earnings per Share of a firm based on the forecasted increase in Sales, if and only if a) Top management stay the same, as are the Goals b) The strategy of the firm does not change c) Competitive scenario is unchanging d) Degrees of Operating and Financial Leverage do not change e) All the above 55. You have computed Price elasticity of demand and realized it is positive (+).Most likely the product in question is A: a) Luxury, status product b) Inferior product c) Regular product d) Over-produced product

Answer & Explanation Solved by verified expert

See Answer