A Manager Is Considering Purchasing Data from an Outside Vendor

question 43

Essay

A manager is considering purchasing data from an outside vendor to get a better understanding of the target market for his firm's services. What factors should the manager consider when evaluating the data's usefulness for his needs?

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Definitions:

Subscription Price

The price at which existing shareholders are allowed to buy additional shares of a company, usually at a discount.

Initial Public Offering (IPO)

The process by which a private company offers shares of stock to the public for the first time to raise capital.

Underwriter

A professional or company that assesses and accepts the risk of another party, often used in insurance and securities issuing.