Define Cognitive Dissonance and Describe How Can Consumers and Marketers

question 91

Essay

Define cognitive dissonance and describe how can consumers and marketers can reduce it.

Understand the sources and functions of industry ratios.

Identify the role and significance of business brokers in the market.

Recognize appropriate and inappropriate sources for finding businesses to purchase.

Comprehend the factors influencing expense ratios and their comparison with industry standards.

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Definitions:

Annual Net Cash Flows

The total amount of money that flows into and out of a business over a year, after all revenues are collected and expenses are paid.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, indicating the tax impact on your next dollar earned.

Depreciation

The accounting method of allocating the cost of a tangible or physical asset over its useful life.

Net Investment

The difference between total investments and the depreciation on those investments over a period, representing the increase in value of an asset.