An organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business
<h3>What is Sub-optimization?</h3>
In a firm. the term "Sub-optimization" occurs when there is reduced level of output as a result of an an inefficient or ineffective process or system.
The problem associated with Sub-optimization is that when there is an optimization of outcome for a subsystem, it may not generally optimize the outcome for the system as a whole.
In conclusion, the organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business
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Answer:
Nicolas has § 1231 gain = $75000
Nicolas has Ordinary gain = $35000
Explanation:
given data
land cost = $8,000
timber cost = $250,000
timber appraised = $325,000
timber sold = $360,000
to find out
amount and character of Nicolas gain or loss
solution
we get here first gain §1231 gain that is
gain §1231 gain = Appraised value of Timber - Adjusted basis ..............1
put here value
§ 1231 gain = $325000 - $250000
§ 1231 gain = $75000
and
now Ordinary gain will be here
Ordinary gain = Selling price - Appraised value of Timber .................2
Ordinary gain = $360000 - $325000
Ordinary gain = $35000
Answer:
C
Explanation:
The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.
Answer:
Cash flow>
One 15,000 per year
Two 24,000 per year
NPV>
one -16,452
two -15,474
<u>As both options make a negative cashflow </u>
none of them are viable considering a cost of capital of 10%
Explanation:
Net present value for each alternative>
First>
Second>
Wholly owned subsidiary arrangements are preferred by firms which pursue global standardization or transnational strategies.
This arrangement gives a firm an advantage since it is able to use profits from one market to improve its position in another competitive market.
Another few advantages of wholly owned subsidiary arrangements are tax benefits, limited liability, promotes diversification.
Learn more about wholly owned subsidiary arrangements here:
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