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Lostsunrise [7]
2 years ago
15

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

Business
1 answer:
Karo-lina-s [1.5K]2 years ago
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.

Learn more about Horizontal differentiation :

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Firms producing an identical product in a perfectly competitive market are producing at a quantity that maximizes profit. The cu
Wewaii [24]

Answer:

The correct answer is Profit.

Explanation:

According to the scenario, the given data are as follows:

Current market price = $4.50

Long run average cost = $3.50

As we know the following terms of the market, i.e

  • If market price is greater than the cost, than it will give profit
  • if market price is lower than the cost, than it will give loss.

Hence, from the above statement, as the firm is showing the greater market price and lower cost it will result is Profit to the firm.

6 0
3 years ago
What is labour turnover
Readme [11.4K]
It is the percentage between the people joining and people leaving.
7 0
4 years ago
Among the important characteristics of market efficiency is (are) that: I. There are no arbitrage opportunities. II. Security pr
algol [13]

Answer:

D

Explanation:

Among the important characteristics of market efficiency is (are) that:

1. There are no arbitrage opportunities;

2. Security prices react quickly to new information; and

3. Active trading strategies will not consistently outperform passive strategies.

4 0
4 years ago
Which of the following is correct regarding expectancy theory? Group of answer choices Effort is only useful in improving motiva
madam [21]

"An effort is only useful in improving motivation levels in employees with specialized jobs" is correct regarding expectancy theory.

<h3>What is expectancy theory?</h3>

Victor Vroom of the Yale School of Management put forth the expectation hypothesis in 1964. According to the expectation theory, a person's motivation is determined by their level of desire for a reward, their assessment of the likelihood that their efforts will result in the expected performance (Expectancy), and their conviction that their efforts will pay off once they meet their expectations (Instrumentality).

Expectancy is the conviction that stronger efforts will yield better results. Expectations are affected by things like having the necessary skills to do the job, having access to the resources you need, being able to receive the information you need, and receiving the necessary support to get the task done.

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5 0
2 years ago
ANSWER PLS
Nataliya [291]

Answer:

see below

Explanation:

Equity financing involves selling shares to investors. The entrepreneurs surrender part ownership to third parties. It means profits have to be shared, and there have to consultations in every major decision.

Debt financing involves borrowing from lenders. It has a big advantage in that the entrepreneur maintains full control of the business. They do not have to share profits with other people or risk being kicked out of the business. However, debts have to be paid. The monthly repayment for several years can have hamper progress. It reduces profits, making a business seem less valuable.

A business should balance between equity and debt financing. As much as possible, equity financing should have a bigger proposition of capital to be profitable and increase in worth.

6 0
3 years ago
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