The Text Lists Several Creative Ways That a Small Company

question 109

Essay

The text lists several creative ways that a small company can conduct marketing research without incurring the high costs often associated with a marketing research effort. List three methods that might be considered to be creative.

Understand the legal and strategic considerations in forming corporate partnerships and sponsorships.

Articulate the importance of sensitivity analysis in assessing business viability.

Recognize the primary sources of a balanced portfolio for nonprofit funding.

Learn the decision-making process and responsibilities within a nonprofit organization regarding entering business partnerships.

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Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return expected from a particular investment. It is often used as a measure of the performance of an investment or a division within a company.

Weighted Average Cost Of Capital

The average rate of return a company is expected to pay to its security holders, weighted by the proportion of each type of capital in the overall capital structure.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.