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1 year ago

When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or.

1 answer:

4 0

When using horizontal differentiation, a firm divides itself into sub units based on function, type of business, or Geographic area

Horizontal differentiation

Is basically concerned with how the firm decides to divide itself into sub units. The decision is typically made on the basis of function, type of business, or geographical area. In many firms, just one of these criteria predominates, but more complex solutions are adopted in others. This is particularly likely in the case of international firms, where the conflicting demands to organize the company around different products (to realize location and experience curve economies) and different national markets (to remain locally responsive) must be reconciled. One solution to this dilemma is to adopt a matrix structure that divides the organization on the basis of both products and national markets.

Functional structure :

A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area. But problems can develop once the firm expands into different businesses or geographies.

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If the market for corporate control were efficient as a governance device, then only __________ would be targets for takeovers.

CaHeK987 [17]

Answer:

The correct answer is c. poorly performing firms.

Explanation:

Corporate governance is the set of rules, principles and procedures that regulate the structure and operation of the governing bodies of a company. Specifically, it establishes the relationships between the board of directors, the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules governing the decision-making process on the company for the generation of value.

In recent years, and more specifically following the onset of the financial crisis, the international community has understood the importance of listed companies being managed in an adequate and transparent manner. The good governance of companies is the basis for the functioning of markets, as it favors credibility, stability and contributes to boosting growth and wealth generation.

The weakness shown by corporate governments of large organizations in the past has multiplied the demands for transparency, truthfulness, good practices and responsible business behavior on the part of investors, consumers and society in general, which not only pay attention anymore. to financial indicators, but they also want to know how those results have been achieved.

4 0

3 years ago

Estimate the cost of expanding a planned new clinic by 25,000 ft2. The appropriate capacity exponent is 0.62, and the budget est

jeka57 [31]

Answer:

cost of expansion = $1389859.55

Explanation:

Given data:

Original size = 185,000 ft^2

New expansion = 25000 ft^2

capacity component = 0.62

total cost for original size of clinic is = $17 million

Size of new clinic = 185,000 + 25,000 = 210,000 ft^2

cost of new clinic $= 17,000,000 \times [\frac{size\ of\ new\ clinic}{185,000}]^{0.62}$

cost of new clinic = $17,000,000 \times [\frac{210,000}{185,000}]^{0.62}$

cost of new clinic = $18,389,859.56

cost of expansion = cost of 210,000 ft^2 - cost of 185,000 ft^2

= 18,389,859.56- 17,000,000

cost of expansion = $1389859.55

4 0

3 years ago

Emerald Corporation, a calendar year C corporation, was formed and began operations on April 1, 2018. The following expenses wer

Lorico [155]

Answer:

Emerald’s deduction for organizational expenditures is = $4550

Explanation:

given data

Expenses of temporary director and organizational meeting is = $27,000

Fee paid to state of incorporation = 1,000

Accounting services incident = 15,500

Legal services = 9,500

Expenses incident printing and sale = 6,000

to find out

Emerald deduction for organizational expenditures

solution

first we get here total Qualifying organizational expenditures that is

total Qualifying organizational expenditures = $27,000 + $1,000 + $15,500 + $9,500

total Qualifying organizational expenditures = $53000

and Immediate expensing will be as

Immediate expensing = $5000 - ($53000 - $50000)

Immediate expensing = $2000

so now we get here Emerald Corporation deduction under §248 for 2018 is

Amortization = $\frac{$53000-$2000}{180}$ × 9

here tax in year = 9 month

Amortization = $2550

Emerald’s deduction for organizational expenditures is = $2550 + $2000

Emerald’s deduction for organizational expenditures is = $4550

3 0

2 years ago

Gannon Company acquired 10,000 shares of its own common stock at $20 per share on February 5, 2014, and sold 5,000 of these shar

DiKsa [7]

Answer:

The credit entry for the issue of 5000 shares is:

Cr Treasury stock $100,000

Cr Paid-in capital from treasury stock $35,000

Explanation:

The par value of the common stock issue($20 per share) is credited to treasury stock account, while the excess of issue price of $27 over the par value of $20, $7 per share is credited to paid-in capital from treasury stock

The full double entries for the issue of 5000 shares is as follows:

Dr Cash ($27*5000) $135,000.00

Cr Treasury stock($20*5000) $100,000

Cr Paid-in capital from treasury stock($7*5000) $35,000

Under International Financial Reporting Standards, the credit entries would be that par value is credited to equity share capital and the excess credited to share premium account.

3 0

3 years ago

Smith Wholesale budgeted sales price is $40 per unit for an budgeted sales volume of 5,000 units. The actual performance was 5,5

alex41 [277]

Answer:

$20,000 Favorable

Explanation:

As for the provided information, we have:

Sales Volume Variance is defined as the variance arising due to difference in sales quantity based on standard price.

Formula for the above = (Actual Sales - Budgeted Sales) $\times$ Standard Price

= (5,500 - 5,000) $\times$ $40

= $20,000

This variance shall be categorized as favorable, as the actual sales quantity is more than the static budgeted quantity.

Therefore, Sales Volume Variance = $20,000 Favorable

8 0

2 years ago