Steven,a Construction Worker,tends to Buy a New Gadget If Most

question 20

Multiple Choice

Steven,a construction worker,tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet.He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions.It can be inferred that when it comes to the diffusion of innovation,Steven belongs to the group of _____.

• A) early adopters
• B) innovators
• C) late majority
• D) early majority

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Definitions:

Debt to Equity

A financial metric showing the comparative amount of debt and shareholders' equity utilized to fund a company's assets.

Price/Earnings

A valuation ratio of a company's current share price compared to its per-share earnings, used to assess if a stock is over or undervalued.

Ratio Analysis

A technique of analyzing the strength of a company by forming (financial) ratios out of sets of numbers from the financial statements. Ratios are compared with the competition, recent history, and the firm’s plan to assess the quality of its performance.

Stable Company

Refers to a firm with consistent performance, low volatility in its stock price, and predictable financial returns, making it a less risky investment.