Digital Wizards Inc

question 9

Multiple Choice

Digital Wizards Inc., a franchisor of computer technicians, wishes to standardize the pricing practices of its franchisees because they have engaged in price-cutting to increase their respective shares of the market. The most prudent action might be for Digital Wizards to

• A)mandate the prices at which its franchisees sell their services.
• B)suggest the prices at which its franchisees sell their services.
• C)require its franchisees to pay a premium based on their market share.
• D)threaten its franchisees with a suit for material breach of contract.

Grasp the methods to test and validate sales projections and cost estimates.

Recognize the importance of strategic options and contingency planning in business scenarios.

Understand the concept of operating leverage and its effect on business risk.

Learn about the implications of forecasting risk and how it impacts business valuation and decision-making.