Qualitative Factors Often Influence Strategic Investment Decisions

question 36

Multiple Choice

Qualitative factors often influence strategic investment decisions. Which of the following is the best example of such a factor?

• A) Changes in product prices based on consumer demand
• B) Changes in consumer demand based on product prices
• C) Increased ability to ship product in a timely manner
• D) Discount rate estimates

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Definitions:

Per-unit Tariff

A type of tax imposed on each unit of imported goods, raising the cost of these goods to the importer.

Per-unit Revenue

The amount of income that is generated for each unit of goods or services sold.

Infant Industry Argument

A protectionist stance arguing that emerging domestic industries should be shielded from foreign competition until they become competitive globally.

Dumping

The practice of selling goods in a foreign market at a price that is below the normal cost in the home market, often considered unfair competition.