Extensive Analysis Reveals That If Personal Devices Offered Indian Customers

question 66

Multiple Choice

Extensive analysis reveals that if Personal Devices offered Indian customers products at a number of different price points,the company would initially earn more profits but damage the brand in the long term.Which of the following,if true,would support the argument that Personal Devices should offer products at multiple price points?

• A) One of the core values of Personal Devices is to offer only the most advanced technology.
• B) Major stockholders of Personal Devices are primarily motivated by short-term profits.
• C) Competitors have adapted their products considerably for the Indian market.
• D) Indian customers are increasingly becoming selective about the brands they purchase.
• E) The huge Indian middle class is rapidly reaching a level where they can afford premium products.

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Definitions:

Retention Ratio

The fraction of net profits not paid out as dividends but kept within the corporation for reinvestment or other purposes.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, representing how much money a company returns to shareholders versus retaining for growth.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

External Financing Needed

The additional funds a company requires from external sources to finance its planned activities or growth when internal cash flows are insufficient.