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NEW QUESTION: 1
Rogcrt Markets is the nation's third largest retail grocery chain, and usually has the largest or second largest market share in every city in which it competes. In its most successful large cities, Rogert has as much as a 25% market share, although its share is sometimes greater in small cities. Rogert is known for its excellent customer service and has a wide variety of grocery selections in almost every part of its stores. Its profit margins on sales are slightly above industry averages, and its return on assets and return on equity are above average.
Rogert has an equity beta of 0.78 and a debt-to-capital ratio of approximately 50%. Recent economic difficulties, including higher commodity prices and higher unemployment, resulted in lower profit margins for Rogert. Still, Rogert's decline in profit margin was less than for its competitors. Rogert did not experience substantial losses of sales from customers switching to lower-priced competitors as its market share remained substantially constant.
Zephine Markets is one of Rogert's smaller competitors. Zephine operates in roughly 15% of the same cities as Roger. Zephine is publicly traded, and one of the members of Rogert's board of directors has asked the staff to evaluate an acquisition of Zephine. The staff believes that Zephine is slightly underpriced and that it could be acquired for a 20% premium over its current price. In recommending against the acquisition, staff member Pierre Chiraq says:
"I agree that eliminating Zephine as a rival would probably enhance our profit margins. However, I am skeptical about this acquisition. First, because our market share is almost never dominant, much of the benefit of eliminating a smaller rival will be shared by our other rivals. They will free-ride on our investment.
Second, if our profit margins do increase, wc will eventually attract new rivals into our markets. And finally, our cost of capital should increase substantially because the firm will be diversifying horizontally instead of vertically, increasing the firm's risk." Over the last several years, grocery industry growth has tended to follow the general economy. The competitors in the industry, like Rogert, compete for market share in a stable industry. The industry's cyclical behavior has shown stable performance in both the ups and downs of the business cycle.
In assessing Rogert's competitive position, Chiraq makes comments about the threat of new entrants:
"My concern about new entrants into our business is low for several reasons. Economies of scale are achievable at a low size of operations relative to that of our firm. Our brand identity is high in the markets in which we compete. And, finally, access to distribution channels is difficult to achieve in the grocery business. While there are many competitive forces that concern mc, new entrants is low on my list." Finally, the staff discusses industry changes that might have a negative effect on Rogert's industry position. Three phenomena are mentioned that could have such an effect. They are:
1. Industry growth rates are low and declining;
2. Several suppliers are sponsoring national television advertisements for their products;
3. The government has approved a new method of extending the shelf life of fruits and vegetables.
Chiraq's concerns about new entrants into Rogert's business is least likely correct regarding:
A. access to distribution channels.
B. brand identity.
C. economies of scale.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Chiraq is incorrect about economies of scale. The fact that economics of scale are available for firms much smaller than Rogert would make it easier for new entrants to enter the business. (Study Session 11, LOS
37-b)
NEW QUESTION: 2
Your company is based in the United Kingdom (UK).
Users frequently handle data that contains Personally Identifiable Information (PII).
You create a data loss prevention (DLP) policy that applies to users inside and outside the company. The policy is configured as shown in the following exhibit.
Use the drop-down menus to select the answer choice that completes each statement based in the information presented in the information presented in the graphic.
NOTE: Each correct selection is worth one point.
Answer:
Explanation:
Explanation
The text in the Policy Settings section of the exhibit explains what will happen.
If a user sends between 1 and 10 instances of the sensitive info (passport number), then a notification email and will be sent to the user and a policy tip will be displayed. The email will not be blocked though. Therefore, it will be allowed.
If a user sends more than 10 instances of the sensitive info (passport number), the email will be blocked and a high-severity alert generated. However, the user can override the block.
Reference:
https://docs.microsoft.com/en-us/office365/securitycompliance/data-loss-prevention-policies
NEW QUESTION: 3
The Node.js implementation in MCS has been extended to implicitly include several Node.js modules. Which module allows MCS to handle HTTP requests and responses?
(Choose the best answer.)
A. Grunt
B. Async
C. Bluebird
D. Express
E. http-server
Answer: C
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