A lower debt ratio signifies that the firm depends less on borrowing as compared to equity for financing its assets. Usually, the lower the debt ratio, the lesser is the risk. However, the acceptable levels are different across industries. (AAII, 2010) mentioned that the interest coverage ratio assesses the firm’s ability to pay interest on its outstanding debt. A high number signifies a healthy firm; whereas a ratio below 1 means that the firm is unable to pay its interest obligations due to insufficient earnings.
A branded product manufacturing company doesn’t focus on the reduction of the price of the product, but on providing the quality product on time. Too much reduction of the price can also make the customers to have a negative impact on the product and thus can affect the future sales of the same. When a competitor undercuts your company 's pricing structure for products or services by offering them at a lower cost, it can present a serious challenge to sales, particularly because many firms are still operating at narrower margins in the wake of the economic
The market for sugary drinks is an example of market failure. Market failure is a situation in which the allocation of goods and services is not efficient. Since there are negative externalities of consumption with sugary drinks, the MPB is greater than the MSB. This means that the marginal private benefit of consumption is greater than the marginal social benefit of consumption. The difference between the two is due to the negative externalities that occur, such as waste from production of sugary drinks as well as the health risks of consuming them.
The second stage our company offers is to then progress onto what we call a vulnerability assessment. Our risk aware security professionals can assist your organisation is considering each of the vulnerability's to your organisation faces and then assess them accordingly. We base our rating on how severe the impact would affect your organisation on its day to day operations and infrastructure. When we consider our ratings we always refer to the confidentiality, integrity or availability of your organisation can be compromised. Our impact vulnerability ratings are as follows: i.
Another things that made African states not to benefit most in the trade is that, they export raw material or minerals because they lack means to process those raw material into finished goods and services. Therefore, those raw materials that are being exported, the African states import them back as manufactured and finished goods and they import them at higher cost compared to the profit they received when exporting
• Same or similar clothing in Mr Price and Edgars could be a disadvantage because consumers would pay a bit more for good quality clothing, whilst also purchasing on credit. • Change in consumer taste is a major threat as it is hard to predict future trends. • Due to technological problems with the online store, customers could be disappointed and will associate negatively with the brand. • Poor economic situations in the country, collapsing education system are all contributing factors why profits could decrease. • A weak exchange rate will have a negative impact on Mr Price’s maintaining a low price in this tough economic environment.
Lower quantity but the same quality. Due to small budgets that emerging consumers have, there is no demand for high quantities. Therefore, it is better to maintain quality and price but lowering the quantities, rather than compromising the quality and lowering the prices. An entirely different set of rules applies to the emerging markets. But the principles that are behind a buisness success in developed countries still apply.
It is generally found that young consumers with relatively low levels of income are most willing to buy counterfeits that are available at cheaper prices. Another important factor is cultural values of the consumers. Cultural beliefs also shape the consumers’ attitude towards counterfeits. Apart from that it is the consumers’ attitude towards morality and lawfulness or their ethics that decide how willing they would be to buy counterfeits. The extrinsic factors like price, product image, shopping location as well as the effectiveness (Chaudhry & Zimmerman, 2009) of the antipiracy ads are also important determinants of consumer complicity.
(Coronel, 2004) said that corruption worsens income equity and poverty where instead of helping the poor and the needy, the government or the governmental institutions to be specific seek to largely contribute to services which is not even used and is not that relevant or is used by the people. Corruption also is said to damage the legitimacy and democracy of the government where citizens become suspicious towards the intentions of the authority. As (Johnston, 1997) stated, corruption begets bad politics, and bad politics begets further corruption; where politics and corruption as viewed nowadays are intertwined. Corruption is said to endanger public order and safety, where the laws are being bent and the people are not regulating the forces of the government which leads to massive riots and slow decline of governmental