Why Is the Personal Decision a Financial Manager Makes as to Whether

question 64

Multiple Choice

Why is the personal decision a financial manager makes as to whether to buy or to rent an apartment as a personal residence most like the professional decision that manager makes as to whether her firm should try to acquire a stake in a fast growing new Internet-based company?

• A)Both decisions involve the purchase of assets.
• B)Both decisions will be made based on what provides the greatest long-term benefit.
• C)Both decisions are vital to the financial health of the decision maker.
• D)Both decisions should be made based upon the tradeoff benefits and costs across time.

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Definitions:

Product Availability

The extent to which a good or service is available for purchase at any given time.

Product Differentiation

Strategies businesses use to make their products stand out from competitors' by highlighting unique features or benefits.

Customization

The process of modifying or building a product, service, or system to accommodate specific requirements of an individual customer or a particular market segment.

Postponement

A strategy used in supply chain management to delay product customization until customer orders are received.