Explain the difference between good debt and bad debt, and give an example of each
What will be an ideal response?
Answer: Good debt is something obtained for a long-range, strategic purpose. One example is student loans for college. Bad debt is unnecessary purchases on credit, such as concert tickets or expensive clothes.
Explanation: Good debt is debt incurred for a strategic, long-range purpose that will improve one's life, such as a loan for college or a home mortgage. Bad debt is for frivolous purchases with no long-range value or potential to improve one's life.
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A core fundamental of an open, economic environment, the Law of Supply and Demand, refers to the ability of the market, independent of external influences, to determine the:
A. amount of product or service that will be bought or sold B. price for which a product or service will be bought and sold C. amount of product or service that will be produced D. speed at which a product or service will be bought or sold E. relative stability of demand for a product or service
According to Hamel and Prahalad, which of the following approaches is being utilized by a company that refuses to follow the practices and regulations set by industry leaders and finds new ways to gain competitive advantage?
A) searching for loose bricks B) changing the rules of engagement C) collaborating D) building layers of advantage