Answer:
b. When there is a lack of importance of the buyer to the supplier group
Explanation:
According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.
Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.
This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.
If however buyer is more important to the supplier it means they can control price and quality of inputs
Answer:
<u>c. exposing himself to unlimited personal liability.</u>
Explanation:
One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.
A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.
Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.
Thus, the correct option is, c. exposing himself to unlimited personal liability .
<h3>It doesn't matter, things changes and people changes but atleast if it changes it should change for the BETTER.</h3>
Good luck ✅.
Answer:
Option (C) is correct.
Explanation:
Manufacturing costs:
= Direct Materials + Direct Labor + Variable overhead
= $160,000 + $80,000 + (150,000 × 75%)
= $160,000 + $80,000 + $112,500
= $352,500
Operating income:
= Sales (1,100 units) - Manufacturing costs
= $370,000 - $352,500
= $17,500
Therefore, if Model A02777 is dropped from the product line, operating income will decrease by $17,500.
