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2 years ago

Which of the following most correctly demonstrates the opportunity cost of

1 answer:

3 0

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices which is in terms of entertainment, food, and shopping. Thus, statement B is correct.

<h3>What do you mean by opportunity cost?</h3>

In microeconomic theory, the opportunity cost of a particular activity alternative is the loss of price or advantage that could be incurred through engaging in that activity, relative to engaging in an alternative activity providing a better return in value or advantage.

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices in terms of entertainment, food, and shopping. Thus, statement B is correct.

Learn more about Opportunity cost here:

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The price of an automobile is now $8325 which is 450% of its price seven years ago. What was the price of the car seven years ag

Vsevolod [243]

1850 is the price of the car 7 years ago

3 0

3 years ago

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as:

larisa86 [58]

Complete Question:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

A. vulnerability to seasonal and cyclical downturns, vulnerability to driving forces, and vulnerability to fluctuating interest rates and exchange rates.

B. relative market share, the ability to match or beat rivals on key product attributes, brand image and reputation, costs relative to competitors, and the ability to benefit from strategic fits with sister businesses.

C. the appeal of its strategy, the relative number of competitive capabilities, the number of products in each business's product line, which businesses have the highest/lowest market shares, and which businesses earn the highest/lowest profits before taxes.

D. the ability to hurdle barriers to entry, value chain attractiveness, and business risk.

E. cost reduction potential, customer satisfaction potential, and comparisons of annual cash flows from operations.

Answer:

Explanation:

Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as;

1. Relative market share: this measures the subsidiaries position in a market in relation to its competitors in the same industry. It is a measure of the percentage of the market they control.

2. The ability to match or beat rivals on key product attributes: this is really important in the assessment of competitive strengths because it represents the level of acceptance of their products by consumers in comparison with rivals.

3. Brand image and reputation: if the subsidiary is well accepted by the consumers, it simply suggests that they have a good brand image and reputation in the market. A good brand image and reputation is competitive strength.

4. Costs relative to competitors: the higher the price a company is selling its products relative to rival companies, the lesser its sales would be because consumers would naturally go for cheaper products or lower prices.

5. The ability to benefit from strategic fits with sister businesses: companies should be able to achieve their set goals and objectives from opportunities presented by their sister company.

Hence, the competitive strength of a diversified company and its subsidiaries should be assessed based on the aforementioned factors.

8 0

3 years ago

Sheldon and Morton formed a partnership with capital contributions of $80,000 and $40,000, respectively. Their partnership agree

Anastaziya [24]

Answer:

The answer is:

Sheldon: $39, 500; Morton: $50, 500

Explanation:

A partnership is a binding agreement between two or more parties to carry on a business. The sole purpose of this agreement is to share skills and expertise so as to generate a profit. In a partnership, the partners have unlimited liability meaning that if the business established by the partners in unable to repay creditors, the creditors are legally allowed to seize the personal assets of the partners to cover the debts owing. However, in accounting for financial performance, the business is considered to be a separate entity (exists independent of the partners). Sheldon and Morton have established a profit-sharing arrangement that compensates Sheldon for the capital contribution (larger interest share) and Morton for his contributions to the business operations (larger salary share). The profit after these deductions is shared equally between the 2 partners. Assuming the given net income is after operations but before partner deductions, the share of the partners is calculated as follows:

Sheldon Morton

Interest $8,000 $4,000

Salaries $10,000 $25,000

Profit share $21, 500 $21, 500

Total share $39, 500 $50, 500

Interest (10% * $80, 000) (10% * $40, 000)

Profit share (50% * $43,000) (50% * $43,000)

Net Profit Share: $90, 000 - $(8,000 + 10,000 + 4,000 + 25,000)= $43,000

8 0

3 years ago

Innovative Components is a manufacturer of computer parts. The company recently reported earnings of $2,014,802. In addition, In

sp2606 [1]

Answer:

C) $128.15

Explanation:

The computation of the intrinsic value of Innovative Components’ equity per share is shown below:

= Retained earnings ÷ number of shares issued × PE ratio

= $2,014,802 ÷ 402,500 shares × 24.6

= $128.15

We simply applied the above formula so that the intrinsic value of Innovative Components’ equity per share could come

and ignored the company PE ratio of 24.6

6 0

3 years ago

When Breyers sells Oreo Cookies and Cream ice cream, Breyers purchases ground Oreo cookies for inclusion in the ice cream and pr

fenix001 [56]

Answer:

licensing

Explanation:

Based on the information provided within the question it can be said that in this scenario using the Oreo name on its packaging is an example of licensing. This refers to when an individual or company uses another company's brand in order to sell their products. Usually the original owner of that brand receives royalty payments for allowing this to happen.

4 0

3 years ago

Read 2 more answers