Sears and Holiday Inn Encountered Difficult Times Because They Did

question 134

Short Answer

Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost,highest in perceived value,or best in serving some market segment.Both companies are ________.

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Definitions:

Capital Rationing

The process by which management plans, evaluates, and controls long-term capital investments involving fixed assets.

Investment Funds

Pooled funds from investors that are managed by professionals and invested in a diversified portfolio of assets to earn returns.

Capital Investment

Expenditure on assets that are expected to produce benefits over a long period, such as buildings, machinery, and equipment.

Internal Rate

Often referred to in the context of Internal Rate of Return (IRR), it represents the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.