Historically credit card loans have had very low rates of default or credit risk when compared to other assets that an FI may hold.

Which of the following is the most appropriate apology when writing a negative news message?

A) "I am sorry you had a problem with this product, and please know this issue will never happen again." B) "If this issue has created any problems for you, we are sorry." C) "I am sorry to hear of your difficulties with this product." D) "I am sorry to hear of your difficulties, as we sell millions of these products a year and no one else has expressed any concern with them." E) "I am sorry if anyone had difficulties with this product."

A firm currently has a 20% market share for its product, lint pickers. It has identified 2 plans to improve its market share. The transition matrices for both plans are listed below. Plan 1 costs $1 million and Plan 2 costs $1.5 million

The company's goal is to determine what its demand will be in the long-term. Plan 1: 20% Share 40% Share 60% Share 20 Share 0.25 0.40 0.35 40 Share 0.20 0.35 0.45 60 Share 0.10 0.50 0.40 Plan 2: 20% Share 40% Share 60% Share 20 Share 0.30 0.30 0.40 40 Share 0.10 0.50 0.40 60 Share 0.20 0.30 0.50 A single percentage point of market share translates into an annual demand of 1,000 units per year. Also, each percentage point of market share means $100,000 of profit for the firm. Choose the plan that maximizes the firm's net income.