Which of the Following Is NOT a Reason for the Financial

question 71

Multiple Choice

Which of the following is NOT a reason for the financial crisis of 2007-2008?

• A) increases in the leverage ratios for financial intermediaries
• B) collapse of the shadow banking system
• C) excessive securitization of liabilities
• D) excessive confidence about the stock market

Differentiate between various pricing concepts like cost-plus, target cost, and competition-based pricing.

Calculate desired profit based on return on investment criteria.

Calculate markup percentage and determine its impact on product pricing.

Understand the role of variable and fixed costs in decision-making.

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in the hope of making a profit.

Start-Up Process Model

A framework outlining the steps or phases involved in launching a new business, from conception to market entry.

Organizational Characteristics

Features that define the structure, culture, and operational dynamics of an organization, influencing its performance and behavior.

IPO

Initial Public Offering, a process where a private company offers shares to the public for the first time to raise capital.