FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 6, Problem 1RLPF
Summary Introduction
To discuss: The benefits and drawbacks that are associated with online car buying.
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Would the Wegmans approach work for a car dealer? Abookstore? A manufacturer of industrial goods? Explainyour answers
Choose A, B, C, or D. Martin’s number one financial goal is to buy a car. The first step he should take in making this consumer purchase is to
A :
evaluate whether he can afford to buy and own a car.
B :
get preapproval from his bank for a car loan so that he can negotiate more effectively with car dealers.
C :
research all the different types of cars that might meet his needs to determine their safety, reliability, and fuel economy.
D :
evaluate whether he needs a car and, if so, what type of car he needs.
Craig, owner of Craig's Design and Landscape, takes advantage of cash discounts when purchasing from vendors whenever possible. Discuss the business reason for this decision. How does taking these discounts affect his overall expenses, cost of goods sold and net income? Then address the ethical ramifications if Craig would take the discount when paying out the discount period.
Chapter 6 Solutions
FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
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Similar questions
- Conduct research on a real-world retailers trade discounts and policies, and discuss the following questions. Which company did you choose? What do they sell? What is a trade discount? What products are subject to a trade discount? Describe the discount terms/program in detail. Give examples. Are there any restrictions? What incentive does this company have to give a trade discount? How does this discount benefit the buyer? If the buyer had to choose between receiving a trade discount or regular cash purchase discount, which would benefit them more? Why?arrow_forwardThink of the last time you had to make a thoughtful purchasing decision. This could be any type of purchase from a car to a phone, or entertainment l. What questions did you ask when making your decision. How would your decision change if your considering the concept of substantially utility?arrow_forwardUber and Lyft are two popular ride-sharing services. Imagine that you are visiting New York City for a family vacation. You are trying to decide whether to use one of these ride-sharing services to get around the city or rent a car and drive yourself. Considering the perspectives of the passengers (your family), the drivers, and the company (Uber or Lyft), explain the following: A. why ride-sharing services have gained in popularity B. the financial considerations relevant to your decision C. the nonfinancial considerations relevant to your decisionarrow_forward
- When you purchase a new car, the “sticker price” includes a “destination charge. Are you purchasing the car FOB shipping point or FOB destination? Explain.arrow_forwardAssume you are considering opening a retail business. You are trying to decide whether to have a traditional brick-and-mortar store or to sell only online. Explain how the activities and costs differ between these two retail arrangements.arrow_forwardWhen you purchase a new car, the “sticker price” includes a “destination” charge. Are you purchasing the car FOB shipping point or FOB destination? Explain:arrow_forward
- Uberand Lyft are two popular ride-sharing services. Imagine that you are visiting Ne\w York City for a family vacation. You are trying to decide whether to use one of these ride-sharing services to get around the city or rent a car and drive yourself. Considering the perspectives of the passengers (your family), the drivers, and the company (Uber or Lyft), explain the following: why ride-sharing services have gained in popularity the financial considerations relevant to your decision the nonfinancial considerations relevant to your decisionarrow_forwardOne of your long-term customers asks if you can change the terms to FOB Destination to help them save money. Do you change the terms, why or why not? What positive and negative implications could this have for your business, and your customer? What, if any, restrictions might you consider if you did change the terms?arrow_forwardWhat finances do you need to have to achieve getting somewhere with Cosmetology? For instance to build your own salon?arrow_forward
- Rent versus buy analysis - Part 2 Which is better: to rent or to buy? The decision of whether to rent or buy housing is a personal decision that is based on both your lifestyle and your finances While most financial experts argue that the financial aspect of the decision. is important, it is also important not to base your rent- or buy decision solely on the numbers. Your personal needs and housing market conditions are important. However, it is still necessary to perform the financial analysis. Tim and his wife are trying to decide whether to rent or to purchase a new townhouse. After looking for several months, they ve narrowed their choice down to one particular house, and the builder is willing to lease or sell-depending upon the preference of the buyer. To perform a rent or buy analysis, Tim and his wife have collected the following information: if they rent, the builder will require monthly rental payments of $1,300 and a security deposit equal to two months of rent Since they…arrow_forwardYou are trying to decide if you are going to drive or fly to San Diego, California for your upcoming vacation. Which of the following is irrelevant when deciding whether to drive or fly to San Diego? Cost of plane ticket. Cost of car insurance. Wear and tear on your vehicle. Cost of the gasoline.arrow_forwardFor a small brick-and-mortar store, what would be a realistic price for creating an online store for the owners, as well as risk assessments associated with said website (power failure, user error, etc)?arrow_forward
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