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Artist 52 [7]
3 years ago
5

McDonald's culture, with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these c

haracteristics, illustrates which of the following criteria for sustainable competitive advantage?
A) Valuable
B) Rare
C) Costly to imitate
D) Nonsubstitutable
Business
1 answer:
Luba_88 [7]3 years ago
5 0

Option C

Costly to imitate criteria for sustainable competitive advantage

<h3><u>Explanation:</u></h3>

Sustainable competitive advantages are business assets, properties, or skills that are hard to replicate or exceed; and render a higher or complimentary long term situation over competitors.  A company must produce distinct goals, plans, and methods to create a sustainable competitive advantage.

 It needs huge expenditure in time and money to create a brand. It demands very limitedly to destroy it. A good brand is precious because it prompts customers to favor the brand over competitors. A unique product or service increases customer support and is less suitable for a competitor to imitate.

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Ruston Company had Net Income for 2020 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2020. The e
Aloiza [94]

Answer:

$3,000,000

Explanation:

Calculation to determine the Net Cash Flow in 2020

STATEMENT OF CASH FLOW

For the Year 2020

Cash flow from operating Activities:

Net Income $6,200,000

Add Depreciation Expense $ 800,000

Net Cash provided by operating activities $7,000,000

($6,200,000+$800,000)

Cash flow from Investing activities:

Investment in Equipment ($4,000,000)

Net Cash used in Investing activities ($4,000,000)

Net Cash flow in 2020 $3,000,000

Depreciation under Straight Line method = (Cost - Salvage Value)/Useful Life

Depreciation under Straight Line method= (4000000-0)/5

Depreciation under Straight Line method= 800,000

Therefore the Net Cash Flow in 2020 is $3,000,000

4 0
3 years ago
homas is planning to start his own business in 10 years, at which time he will buy all the equipment and land needed. Currently
aalyn [17]

Answer:

FV $4,594,590

Explanation:

The annuity which produce funds will start on the seventh year thereofre there will be 4 annual deposits at the beginning of each year.

We solve for the future value of an annuity-due of 4 year at 10% interest rate:

C \times \frac{(1+r)^{time} -1}{rate}(1+r) = FV\\

C 900,000.00

time 4

rate 0.1

900000 \times \frac{(1+0.1)^{4} -1}{0.1}(1+0.1) = FV\\

FV $4,594,590

This is the amount accumualted at the end of the tenth year

6 0
3 years ago
The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. T
den301095 [7]

Answer:

The correct answer is a. sorting/absorbing

Explanation:

The flight of talented employees is a situation that usually hurts companies, for that reason it is important to have growth plans that allow you to retain the people who generate value for the organization. If you focus directly on the classification, you are certain of who the projected employees are, and that in the short or medium term they can directly contribute to the growth of the company; for its part, absorption refers to the process of hiring employees who are already talented in search of a training process based on previous experiences.

4 0
3 years ago
JTM Ltd incurs costs of $16 per unit ($12 variable, $4 fixed) for a widget it sells for $22. JTM has received two special offers
Mademuasel [1]

Answer:

We must analyze the potential benefits of choosing one order or the other one:

Current JTM costs:

  • $12 variable per unit
  • $4 fixed per unit

If JTM accepts Firm A's order its fixed costs will not vary and it will be able to increase its profits by: ($17 - $12) x 10,000 = $50,000

Since JTM doesn't have the capacity to fulfill Firm B's order with their current cost structure, if it decides to take it, its variable or fixed costs (we don't know which) will probably increase, so its contribution margin will no longer be $5, as with Firm A's order, but will probably be lower. We are not told by how much the costs would increase.

The third alternative is to accept Firm B's offer and not sell 2,000 units through its normal distribution channels, but that would result in an increase in profits but also loss of normal profits:

($5 x 14,000 units) - ($6 x 2,000 units for the lost normal profits) = $70,000 -  $12,000 = $58,000. If JTM is able to cancel the sale of 2,000 units, then Firm B's offer would increase its profits by $58,000, $8,000 more than Firm A's order, but it depends on its ability to cancel or not the normal sales.

3 0
3 years ago
1) When there is uncertainty in the marketplace, what happens to yield spreads and why?2) Why do venture capital companies often
Yuki888 [10]

Answer and Explanation:

1. When there is high uncertainty in the market, there will be high yield spreads. This is because the higher the risk the higher the profit or compensation for risk

2.preferred stock positions pay more consistent dividends that common stock positions and also pay higher than bonds.

3.Accelerated depreciation is depreciation method in accounting that deducts higher depreciation expenses in the early life of an asset therefore leaving the company to pay less taxes on these assets and more cash flow. Increased cash flow consequently encourages and leads to more investment

5 0
3 years ago
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