Which of the Following Is a Drawback of Local Marketing

question 128

Multiple Choice

Which of the following is a drawback of local marketing?

• A) Local marketing increases manufacturing costs by reducing the economies of scale.
• B) Local marketing requires specialization that is difficult to identify.
• C) Local marketing is not profitable for most small firms.
• D) Local marketing cannot accommodate the needs of modern buyers who are technology savvy.
• E) Local marketing almost always results in brand dilution.

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Definitions:

WACC

Weighted Average Cost of Capital; the average rate of return a company must pay its security holders to finance its assets.

MIRR

The Modified Internal Rate of Return, a financial metric that measures the profitability of an investment while considering the cost of borrowing and reinvestment of cash flows.

Projected MIRR

Projected MIRR refers to the estimated modified internal rate of return, a comprehensive measure of an investment’s attractiveness, adjusting for the cost of capital and cash flow reinvestment rates.

Discounted Payback

The period of time it takes for an investment to generate cash flows to recover its initial cost, adjusted for the time value of money.