Scenario - SS.com Faced with Rapidly Growing Business, Swift Stocks, Inc., a Stocks

question 11

Multiple Choice

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.

• A) cash cow
• B) dog
• C) star
• D) question mark
• E) dead business

Grasp the role of rationality in consumer and producer behavior according to both traditional and behavioral economic theories.

Recognize the impact of reference points, fairness, and the endowment effect on economic decision-making.

Identify the critical assumptions underlying traditional economic theory about consumer and producer behavior.

Explore the effects of perception, such as salience and framing, on consumer decisions.

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Definitions:

Normative Statement

An assertion that expresses an opinion, value judgement, or what ought to be, rather than what is factual or descriptive.

Teachers

Professionals who help students to acquire knowledge, competence, or virtue in educational settings.

Factor Market

A marketplace where factors of production such as labor, capital, and natural resources are bought and sold.

Firms

business organizations engaged in the production and sale of goods and services, operating with the motive of earning profits.