The value of the best choice is called ' Opportunity Cost' in economics.
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.
<u>Explanation</u>:
Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:
- failing to integrate acquisitions
- unable to understand how the acquired organization’s assets would fit with their own lines of business
- paying high premium for the target's common stock
- not acting in best interest of shareholders
The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.
Answer:
Explanation:
The net book value of the property(land and building) at the end of year 2
Building(89,000 + 7,000 + 16,000) 112,000
Less; Depreciation for 2 years(10,200*2) (20,400) 91,600
Land(107,000 + 3,000) 110,000
Net book value of property 201,600
Answer:
$479,500
Explanation:
To determine the interest due for the first payment we can solve the following:
interest due on payment 1 = total debt x interest rate x 1/12 = $480,000 x 10% x 1/12 = $4,000
Now we need to subtract the interest due from the first payment:
principal paid = payment - interest due = $4,500 - $4,000 = $500
remaining principal = $480,000 - $500 = $479,500
<u>Answer:</u> Option B
<u>Explanation:</u>
Revved Rider company is the market leader as the company possess a superior engine technology that is not owned by other companies. This proves that the company has competitive advantage of technology over the competitors in the market.
Competitive advantage means having an advantageous quality which the other companies do not have in the market. When a company has competitive advantage it can become a price leader or market leader. It also becomes the consumer's most preferred company when compared to other companies.
