Compaq Computer's Decision to Charge Customers for Phone Technical Support

question 73

Multiple Choice

Compaq Computer's decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch.Customer rebellion forced Compaq to rethink this policy.As a result,Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service.What did Compaq engage in?

• A)strategic planning
• B)tactical resource realignment
• C)alternative selection
• D)portfolio evaluation

Compute and interpret book value per share and its relevance in financial analysis.

Calculate dividend yield and understand its significance.

Understand and calculate the allocation of dividends among different types of stocks.

Understand the allocation of cash dividends to preferred and common stockholders.

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Definitions:

Fixed Assets

Long-term tangible assets purchased for business use and not expected to be converted into cash in the short term, such as buildings, machinery, and equipment.

Dollar Amounts

A value or quantity expressed in terms of dollars, used to denote the price, cost, or value of something.

Flexible Budgeting

A budgeting process that adjusts to different levels of operation activities or volumes.

Direct Labor

The workforce directly involved in manufacturing products or providing services, whose costs are directly assignable to the goods or services produced.