June 2014 - Paper 3

71:  

The most recent consideration in product packaging is

A.

Cost effectiveness

B.

Product protection

C.

Product promotion

D.

Economy

 
 

Option: C

Explanation :

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72:  

Penetrating pricing strategy is appropriate when

A.

price elasticity of demand in the market is highly inelastic.

B.

price elasticity of demand in the market is uncertain.

C.

price elasticity of demand in the market is highly elastic.

D.

income elasticity of demand in the market is negatively elastic.

 
 

Option: C

Explanation :

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73:  

Which of the following is true?

A.

Systematic risk is diversifiable but unsystematic risk is nondiversifiable.

B.

Systematic risk is nondiversifiable but unsystematic risk is diversifiable.

C.

Both systematic and unsystematic risks are diversifiable.

D.

Both systematic and unsystematic risks are nondiversifiable.

 
 

Option: B

Explanation :

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74:  

The degree of super-leverage would be calculated by :

A.

Adding DOL (Degree of Operating Leverage) and DFL (Degree of Financial Leverage)

B.

Dividing DOL with DFL

C.

Multiplying DOL and DFL

D.

Subtracting DOL from DFL

 
 

Option: C

Explanation :

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75:  

Business conglomerates have different names in different countries. Which country's conglomerates are called 'Chaebols' ?

A.

Japan

B.

South Korea

C.

Germany

D.

China

 
 

Option: B

Explanation :

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