Gerentology associates, a highly profitable company, is considering two growth strategies, one that will achieve sales growth of 20% in one year, and the other that will achieve 20% growth in sales, but over a 4-year time frame. assuming gerentology associates uses the percent of sales method, which of the following statements is true?
a. discretionary financing needed could be much less for the 4-year growth strategy due to retained earnings.
b. discretionary financing needed could be much greater for the slow growth strategy because interest charges will accumulate on the company's debt.
c. the asset balances at the end of 4 years for strategy two will be much greater than the asset balances required at the end of year one for strategy one.
d. discretionary financing needed will be much greater for the 4-year growth strategy.
the answer is: it prevent people from keeping their cash out circulation
after collecting the money from the saver, banks will provide loans to other business who needs a capital injection and put an interest rates from the total loan. this is the main way banks obtain their profit.
this means that the more cash kept out of circulation , the more profit the banks can potentially get.
because of this, they offers various incentives for the saver to kept their money in the banks rather than using it somewhere else through interest, deposit insurance, maximum withdrawal, etc)
primary market research is conducted by directly going to your customers or prospective customers in your target market, and collecting the information you need to improve your business. meanwhile, secondary market research is a type of market research based on already existing information – basically you compile information from other sources to answer your questions. diversity marketing is a type of communication strategy to appeal to diverse groups using various marketing channels, while differentiated marketing strategy is when a company creates campaigns to appeal to several market segments.
the correct answer, thus, for the given question is (a) primary market research.