Here is the answer
https://www.science.edu/Acellus/curriculum/career-technical-education-courses/lesson-lists/Business%20Management%20Curriculum.pdf
Answer:
Opportunity cost of holding the money = $1.650
Explanation:
Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.
The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.
Interest on savings deposit = interest rate × deposit
= 2.5%× 66,000= $1,650
Opportunity cost of holding the money = $1.650
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
Answer:
B. A strategic action because such a large plant expansion will require a major commitment of resources.
Explanation:
There are two major forms of action in business decision making: strategic and tactical. Strategic action deals with decision that require major planning and investment of resource. Strategic actions have long term implementation and effect and are difficult to reverse.
Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.
On this note, Circus Aircraft`s decision to double its plant capacity over the next two years is a strategic action because such a large plant expansion will require a major commitment of resources. And the action will not easily reversible.
Other options in the question are not totally right.
Answer:The first of two major components of developing a marketing strategy is to<u> select a target market.</u>
<u>Explanation:</u> After determining business products and services the business needs to identify the target market. Identifying the target market is the major step in developing a marketing strategy.
Steps to select a target market
- Target market is actually those customers whom we want to sell our products.Concentrating on target market will make it easier to sell our products.
- Customers can be targeted on the basis of age,gender,income,occupation,educational level.
- Look at the competition that exist .Identify those areas that have been overlooked by our competitors.
- If business is already existing than identify those products and services which are bought by current customers and the benefits that they are getting from it.
- Finally target those customers who actually need your products and services.
