If a Firm Has Implicit Costs as Well as Explicit

question 5

Multiple Choice

If a firm has implicit costs as well as explicit costs

• A)net income will always be less than accounting profit.
• B)accounting profit will be zero.
• C)net income will always be greater than accounting profit.
• D)economic profit will be less than accounting profit.

Distinguish between various bases of market segmentation including demographic, geographic, psychographic, and behavioral.

Describe the steps involved in segmenting and targeting markets and their importance in developing a marketing strategy.

Evaluate the cost-effectiveness and potential profitability of segmenting specific market segments.

Appreciate the concept of one product and multiple market segments and strategies to target them effectively.

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Definitions:

Debtor Claim

A demand for repayment from a debtor; may refer to the legal right to demand money owed.

Limited Liability

A legal structure that limits the personal financial responsibility of owners for the debts and actions of a business.

Corporation

A legal entity distinct from its owners, offering limited liability to its shareholders, and capable of owning assets, incurring debt, and conducting business.

Partnership

A formally established business entity where two or more counterparts participate in managing the firm and splitting the profits.