Answer:
3. Threat of flooding the industry with excellent products
Explanation:
Here are Porter's five primary forces:
- Competition between organizations in the same industry.
This create a sense of rivalry that force each organizations to keep improving their products and services.
This is what represented by option 1.
- Potential of new entrants into the industry.
New entrants into the industry will take a portion of market share. This will benefit the customers because it often force competitors to lower the price of their product
This is what represented by option 2
- Power of suppliers.
Suppliers have the ability to connect the producers and the customers. This give them enough leverage to influence the price imposed by the company.
This is what represented by option 4
- threat of substitute products.
Just like new entrants, substituted products could also take away the market share and reduce the profit that can be taken by companies. This is what represented by option 5.
- Power of customers
Customers could create a demand based on their preference. Companies will have to tried their best to fulfill this demand if they wanted to survive.
This is not mentioned in the options above.
Answer:
1<em>. Emergency surgery is less elastic than cosmetic surgery.</em>
<em>2. A cheeseburger at 2:00 am at a 24 hours restaurant is less elastic than a cheeseburger at 7:00 pm at a 24 hours restaurant.</em>
<em>3. Monthly electricity consumption is less elastic than yearly electricity consumption.</em>
<em>4. The wall street journal is more elastic than wall street journal at the airport.</em>
<em>5. Red cars are less elastic than all cars.</em>
Explanation:
1. Emergency surgery is a necessity and if there is necessity the demand will be inelastic.
2. At 7 pm there are more restaurant open so there will be more offer than 2 am, so if there is more offer the demand is more elastic.
3. Monthly electricity consumption is less elastic because, electricity tend to increase in long run because consumer have more time to adjust their behavior.
4. To buy wall street journal there are few places and less time in the airport than in other places to buy so demand will be less elastic.
5. If there are few substitute only red cars demand will tend to be inelastic. on the contrary, if there are more substitutes (any color car), the demand for the good will be elastic and its consumption can be replaced.
E, if there was enough for everyone if wouldn’t be scarce.
Answer:
$2,000 ordinary gain and $15,000 long term capital gains
Explanation:
Under the installment method, the taxpayer will recognize gains based on the installments that they actually receive, not the whole contract. This method is generally used for real estate transactions that involve installments payments during several years.
In this case, Mr A received $60,000:
$40,000 for inventory, so gain = $40,000 - $38,000 = $2,000 ordinary gain
$20,000 for real property (25% of transaction price) = $20,000 x [($40,000 - $20,000) x 25%] = $20,000 - $5,000 = $15,000 long term capital gains
I think for this item, it will be acceptable if we suggest that the branch manager's salary would be increased. It is through him/her and the dedication of the team members that the sales are very high. If the salary is not increased then, the manager and the team should be compensated for the job well done.
