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In a Short Essay, List the Seven Key Principles That

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Essay

In a short essay, list the seven key principles that are required in order for a firm to be profitable when addressing the needs of customers in the bottom of the pyramid.


Definitions:

Diversification

A risk management strategy that involves allocating investments among various financial instruments, industries, or other categories to minimize risk.

Expected Value

A calculated average of all possible values for a random variable, weighted by their probabilities of occurrence.

Health Costs

Expenses associated with maintaining, improving, or treating an individual’s health, including medical care, medication, and hospitalization.

Moral Hazard

Moral hazard occurs when one party in an agreement can take risks because the negative consequences of their actions will be borne by another party.

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