Many Local and National Chain Bookstores,such as Borders and Bookstar,have

question 237

Multiple Choice

Many local and national chain bookstores,such as Borders and Bookstar,have closed over the past few years.This is due in part to competition from e-book readers such as Amazon's Kindle and Apple's iPad,which permit the online purchase and download of digital books.Moreover,subscribers to newspapers and magazines have cancelled their print subscriptions in favor of online news.These trends have caused the StarTribune newspaper to offer online content for $1.99 per week and Newsweek to suspend its print edition in favor of an online only weekly edition.These companies had to change their ________,an action triggered by the technological and social changes in their marketing environments.

• A)organizational cultures
• B)marketing tactics
• C)business models
• D)strategic marketing processes
• E)goals or objectives

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Definitions:

Effective (Annualized) Yield

The effective, or annualized yield, calculates the return on an investment by taking into account the effect of compounding interest over a one-year period.

Quarterly Compounding

The process of calculating interest and adding it to the principal sum of a loan or deposit on a quarterly basis.

Effective Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.

Compounded Quarterly

Generating interest on both the initial principal and previously earned interest every three months.