MENU
What strategy induces intermediaries to promote and sell the firm's products?
Suggested Answer: B
Get Premium CMA Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
The cash flows of Plan A are discounted at 12%, the company's cost of capital for average risk projects. Plan B is evaluated with a lower cost of capital that reflects a greater risk of the cash outflow of the project. Thus, the cash flows of Plan B are discounted at 10% (12% --- 2%). the company's adjusted cost of capital for high risk projects. The net present value of each plan is the initial cost plus the present value of an annuity for 10 years at the appropriate rate multiplied times the annual operating cost.
The present value factors are found in the tools section of CMA Test Prep.
Plan A NPV = $10,000,000 + ($1,000,000 x 5.650)
Plan A NPV = $15,650,000
Plan B NPV = $5,000,000 + ($2,000,000 x 6.145)
Plan B NPV = $17,290,000
Plan A has a lower NPV and thus is the better project.
37 comments · newest first
GI
Giuseppe
10 months ago
Surprised that differentiation isn't the answer here!
GR
Gregg
11 months ago
Push strategy gets the products moving faster!
DE
Denny
11 months ago
Wait, isn't focus just about targeting?
CO
Corrinne
11 months ago
I think pull is more effective, though.
PA
Paris
11 months ago
Definitely a push strategy!
SA
Sabra
12 months ago
"Focus" and "Differentiation" seem off for this question, but I can't quite recall the specifics of "Push" versus "Pull."
SH
Shayne
12 months ago
I feel like we practiced a question similar to this, and "Push" was definitely mentioned as a way to get intermediaries on board.
JO
Jovita
12 months ago
I'm not entirely sure, but I remember something about "Pull" strategies being more about consumer demand.
GA
Gayla
1 year ago
I think the answer might be "Push" because it involves incentivizing intermediaries to sell more, right?
MA
Marion
1 year ago
I'm a little confused by the wording of this question. Does it mean what strategy the firm should use, or what strategy the intermediaries themselves would use? If it's the firm's strategy, then I'd say Push is the right answer. But if it's about the intermediaries' strategy, then maybe Pull or Differentiation could work too.
LE
Leonardo
1 year ago
Hmm, I'm a bit unsure on this one. Pull, Push, Focus, and Differentiation all seem like they could potentially be strategies to get intermediaries to sell a firm's products. I'll have to think this through carefully.
SC
Scot
1 year ago
This seems like a straightforward marketing strategy question. I'm pretty confident the answer is Push, since that's the classic approach to getting intermediaries to promote and sell a firm's products.
AM
Amie
1 year ago
Okay, let me break this down. Push strategy is when the firm actively promotes and sells the product to intermediaries, while Pull strategy is when the firm markets directly to consumers to create demand that the intermediaries then respond to. I think Push is the best answer here.
JA
Jackie
1 year ago
This question seems straightforward. I think the answer is B - performance issues with the host could impact the guest operating systems.
ED
Edgar
1 year ago
Hmm, this looks like a tricky one. I'll need to think through the steps carefully to make sure I get the right answer.
TO
Tomas
1 year ago
Hmm, this one seems pretty straightforward. I think the key is to focus on the specific capabilities mentioned in the question - identifying unknown malware, zero-day exploits, and APTs through analysis in a virtual environment. That sounds a lot like WildFire to me.
AL
Alona
1 year ago
Hold up, is this a trick question? What if the answer is none of the above, and we're supposed to come up with an even better strategy? The suspense is killing me!
DO
Domitila
1 year ago
I'm leaning towards B. Push. It's like my grandpa always said, 'You gotta give 'em a nudge to get them moving!'
CA
Carla
1 year ago
Push strategy can definitely give intermediaries that extra push they need to start selling the firm's products.
KI
Kiera
1 year ago
I think push strategy is more direct and can really motivate intermediaries to take action.
EL
Eleonora
1 year ago
I agree, push strategy can be really effective in getting intermediaries to promote and sell products.
UL
Ula
1 year ago
Hmm, I'm not so sure. Maybe the pull strategy would work better? Let's get the customers asking for our products, and the intermediaries will have no choice but to sell them.
JU
Justine
1 year ago
Differentiation could also be a key strategy to make our products stand out and attract intermediaries.
MA
Magda
1 year ago
I see your point, but I still believe that focusing on creating demand from customers is the way to go.
PA
Pauline
1 year ago
But what about the push strategy? Maybe we should consider that as well.
JU
Julene
1 year ago
I think you're right, the pull strategy could be more effective in getting intermediaries to promote our products.
JO
Johnna
1 year ago
I'm going with B. Push. Can't go wrong with a good old-fashioned push, right? Get those middlemen hyped and make those sales happen!
NA
Nana
1 year ago
Yeah, I agree. Pushing the products to the intermediaries can really help boost sales.
AM
Amos
1 year ago
I think B) Push is a solid choice. It's all about getting the intermediaries motivated to sell.
DE
Deeanna
2 years ago
That's a good point, but I still think Push is more effective in getting intermediaries to promote the products.
ES
Estrella
2 years ago
I disagree, I believe it's A) Pull because it attracts customers to the product.
BE
Bernadine
2 years ago
The push strategy seems like the obvious choice here. Gotta get those intermediaries to really push our products, you know?
SH
Shawnee
1 year ago
D) Differentiation.
AR
Arthur
1 year ago
C) Focus.
AL
Altha
1 year ago
B) Push.
AL
Allene
1 year ago
A) Pull.
DE
Deeanna
2 years ago
I think the answer is B) Push.