The Two Basic Forms of Points-Of-Parity Are ________ Points-Of-Parity and ________

question 123

Multiple Choice

The two basic forms of points-of-parity are ________ points-of-parity and ________ points-of-parity.

• A) conceptual; competitive
• B) strategic; conceptual
• C) category; deliverable
• D) competitive; peculiar
• E) category; competitive

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Definitions:

Embedded Costs

Embedded costs refer to the expenses that a company has already incurred and cannot be recovered.

External Equity

Refers to funds raised through issuing shares of stock to outside investors, as opposed to internal financing through retained earnings.

Required Rate

The minimum return an investor expects to achieve from an investment, considering its risk level.

External Equity

Funds raised through the sale of company shares in the capital markets, as opposed to internal financing through retained earnings.