Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).Assertion (A): A firm that produces high value added products has less goodwill.Reason (R): A firm that produces high value added products is able to earn more profits.In the context of the above statements, which one of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): A firm that produces high value added products has less goodwill.
Reason (R): A firm that produces high value added products is able to earn more profits.
In the context of the above statements, which one of the following is correct?

a)
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
b)
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
c)
Assertion (A) is true, but Reason (R) is false.
d)
Assertion (A) is false, but Reason (R) is true.

Correct answer is option 'D'. Can you explain this answer?

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Given below are two statements, one labelled as Assertion (A) and the ...

Explanation:

Assertion (A) states that a firm that produces high value-added products has less goodwill. On the other hand, Reason (R) suggests that a firm that produces high value-added products is able to earn more profits.

Understanding the statements:
- Assertion (A): High value-added products are those that have a higher perceived value due to additional features or quality. In this context, the assertion implies that such firms may have less goodwill, possibly because they focus more on product quality than on building a strong brand image.
- Reason (R): When a firm produces high value-added products, it can charge a premium price, leading to higher profit margins. This profitability can be attributed to the firm's ability to differentiate its products in the market and cater to a specific target audience willing to pay more for those products.

Evaluation of the statements:
- While it is true that firms producing high value-added products can potentially earn more profits due to premium pricing and differentiation, it does not necessarily mean that they will have less goodwill.
- Goodwill is the intangible value associated with a firm's reputation, customer loyalty, brand recognition, and overall perception in the market. Even firms focusing on high value-added products can invest in building goodwill through marketing, customer service, and other initiatives.
- Therefore, Assertion (A) is false because there is no direct correlation between producing high value-added products and having less goodwill. However, Reason (R) is true in highlighting the profit potential of such firms.

Therefore, the correct answer is option 'D: Assertion (A) is false, but Reason (R) is true.'

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Given below are two statements, one labelled as Assertion (A) and the ...

A firm that produces high value added products or having a stable demand is able to earn more profits and therefore has more goodwill.

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).Assertion (A): A firm that produces high value added products has less goodwill.Reason (R): A firm that produces high value added products is able to earn more profits.In the context of the above statements, which one of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?

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Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).Assertion (A): A firm that produces high value added products has less goodwill.Reason (R): A firm that produces high value added products is able to earn more profits.In the context of the above statements, which one of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).Assertion (A): A firm that produces high value added products has less goodwill.Reason (R): A firm that produces high value added products is able to earn more profits.In the context of the above statements, which one of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).Assertion (A): A firm that produces high value added products has less goodwill.Reason (R): A firm that produces high value added products is able to earn more profits.In the context of the above statements, which one of the following is correct?a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'D'. Can you explain this answer?.

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