Purchase Decision
In the evaluation stage, the consumer ranks brands and forms purchase intentions. Generally, the consumer’s purchase decision will be to buy the most preferred brand,…
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Financial Ratio Analysis
It is difficult to infer organizational performance from one or two simple numbers. Nevertheless, in practice a number of different ratios are often calculated in…
LEVERAGE
Firms are financed by some combination o£ debt and equity. The right capital structure will depend on tax policy—high corporate rates favor debt, high personal…
LIQUIDITY RATIOS
In order to survive, firms must be able to meet their short-term obligations—pay their creditors and repay their short-term debts. Thus, the liquidity of the…
STOCK MARKET RATIOS
Several ratios are calculated not from the income statements and balance sheets of organizations, but from data associated with their stock market performance. The three…
RATES OF RETURN
There are two measures of profitability common in the financial community, return on assets (ROA) and return on equity (ROE). ROA = net income /…
Different pricing strategies
Market penetration has as its main objective the capture of a large share of the market as quickly s possible. In the short term this…
Methods of pricing
Having established the strategy it intends to follow, the business now needs to work out the price it will charge. This will depend on the…
Personal Factors Affecting Buying Behaviors
A buyer’s decisions also are influenced by personal characteristics such as the buyer’s age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept….
The Need for Adjusting Entries
For purposes of measuring income and preparing financial statements, the life of a business is divided into a series of accounting periods. This practice enables…