Organizations catering to the ________ market need to price their offerings carefully because these markets usually have limited purchasing power

A company purchased land for $72,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building was $1,200. Under the cost principle, the cost of land would be recorded at

a. $82,800. b. $72,000. c. $77,800. d. $84,000.

In the context of the given scenario, which of the following is a threat for Raney Pharmaceuticals Corp.?

A. New regulations have been passed limiting their ability to sell certain formulations over the counter. B. As compared to their competitors, their management team is by far the best in the industry. C. The company has inadequate financial resources to invest in their operations. D. They have fallen behind in research and development in the last few years. E. More people are becoming interested in natural alternatives to traditional chemical pharmaceuticals; this trend is expected to continue over the next decade.