Kelly's Kids Is a Home-Based Business That Sells High-Quality Children's

question 47

Multiple Choice

Kelly's Kids is a home-based business that sells high-quality children's clothing at premium prices using in-home parties. These in-home parties typically cater to families with small children and middle- to upper-middle-class income. Kelly's Kids is using ____ variables to segment its market.

• A) demographic
• B) psychographic
• C) sociographic
• D) behavioristic
• E) geographic

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Definitions:

Discount Factor

A multiplier used to calculate the present value of future cash flows; reflects the time value of money.

Invested Today

Refers to the allocation of resources, such as capital or time, in the present with the expectation of future returns.

Guaranteed Rate

An interest rate or return that is promised by a lender or issuer to an investor for a fixed period.

Discount Factor

A multiplicative factor used in discounted cash flow (DCF) analysis to calculate the present value of future cash flows.