Capital structure decisions include determining:

1. which one of two projects to accept.

2. how to allocate investment funds to multiple projects.

3. the amount of funds needed to finance customer purchases of a new product.

4. how much debt should be assumed to fund a project.

5. how much inventory will be needed to support a project.

Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). consumer demand (d) is influenced by these variables. the simplest model for describing demand in terms of these variables is: d = k – pp + aa + tt + qq where k, p, a, t, and q are constants. discuss the assumptions of this model. specifically, how does each variable affect demand? how do the variables influence each other? what limitations might this model have? how can it be improved?