The Examples of Ikea and Southwest Airlines Demonstrate

question 16

Multiple Choice

The examples of Ikea and Southwest Airlines demonstrate:

• A)The power of brand as a factor of success
• B)The quality of the top management of these firms
• C)The power of advertising
• D)How a cost-leadership strategy can be combined with distinctive product differentiation

Analyze the effect of stock price volatility on option strategies.

Understand and calculate the conversion price of convertible securities.

Estimate the market value of a firm's equity given the potential asset value changes and debt.

Understand the concept of classical conditioning and its components.

---

Definitions:

Plant Asset

Long-term tangible assets used in the operations of a business that are not intended for resale, such as machinery, buildings, and vehicles.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period of time.

Revenue Expenditures

Payments made for ordinary maintenance of an asset or unnecessary or unreasonable situations.

Plant Assets

Long-term tangible assets used in the production of goods or services.