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tiny-mole [99]
3 years ago
12

2. What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Jeff

Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Hint: Do you believe AWS will be more valuable within Amazon or as a standalone company?
Business
1 answer:
andriy [413]3 years ago
4 0

Answer:

Amazon's core business is Retail Trade and E-commerce.

AWS does not complements Amazon's retail arm however AWS powers the cloud infrastructure the e-commerce operations runs on.

I believe AWS will be better of on its own.

Explanation:

Amazon originally started out as an online marketplace for Books and later included other consumer items like electronics, foods, toys, software etc. It has consistently grown this aspect of its business and even surpassing other online retailers. It acquired an equally big retailer <u>Whole Foods Market</u> to establish its presence as a Brick and Mortar shop.

The homepage of its main website Amazon.com still displays retail items for sale.

AWS - Amazon Webs Services is the cloud computing arm of Amazon that provides digital storage, cloud infrastructure, database and virtual computing needs to all categories of users - governments, companies, technological companies and individuals.

AWS has recently emerges as Amazon's highest operating income earner within the group.

Spin or dont spin:

A major reason for the spin is identity and brand effectiveness. Both business units[Retail & Cloud] do not co-relate. In-fact they are two opposite sides. While the e-commerce unit deals in physical products, physical deliver, live customer interaction in most cases. AWS is a complete virtual world where almost every activity is done behind the screens.

Also noteworthy is that Amazon's retail arm is majorly situated in North america while AWS is more of an international brand providing services to users all over the world.

The two businesses are operating in different climes and business operating environments and as such it is recommended both should exist as separate entities

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Ulleksa [173]

Answer:

Quantity demanded for balloons will increase.

Explanation:

According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.

This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.

Therefore,

Fall in the price of balloons will lead to increase the quantity demanded for balloons.

3 0
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For each of the following cash activities, choose the appropriate letter to match the activity with the internal control princip
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Answer:

A. Restrict access

C. Establish responsibility

D. Document procedures

B. Independently verify

Explanation:

A. Restrict access, as the password is set to address the cash register, that is a security is being provided, and this is because, there is a restricted access, for the safety purpose.

C. Establish responsibility - As the treasurer is held liable of making and receiving any checks, and that he is the person who shall monitor such things, related to transactions in checks.

D. Document procedures - since a list is prepared for the checks received in mail, it is mere preparation of records and documentation of what checks are received and what not.

B. Independently verify - Bank Reconciliation Statement is prepared to verify the transactions and match the balance in books with that of the bank pass book.

6 0
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How can investors receive compounding returns? aby selecting a savings account that has a higher interest rate bby investing the
Novay_Z [31]
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Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:
34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0
3 years ago
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