The Text's Toddler University Example Shows That

question 20

Multiple Choice

The text's Toddler University example shows that

• A)parents are not price sensitive when it comes to assuring that their kids will get a good college education.
• B)the needs of a target market determine the nature of the appropriate marketing mix.
• C)a small producer can't compete effectively against large competitors.
• D)in the long run,a firm cannot make a profit without its own production facilities.
• E)All of these answers are correct.

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Definitions:

Ledger

An accounting book or computer file used for recording and totaling economic transactions measured in terms of a monetary unit, by account.

Posting

The process of recording amounts as debits or credits in the accounts of a company's general ledger.

Debt Ratio

A ratio indicating a company's level of indebtedness by dividing its total liabilities by its total assets.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment.