Answer:
A good way to determine if expanding the business into international trade is to use a tool to analyze the international enviroment.
The tool that can be used is PESTEL, which is an accronym for Political, Economical, Social, Technological, Enviromental, and Legal factors.
To complete a Pestel, the strategist of the company simply has to add the relevant factors related to the external enviroment in each one of the six cateogories.
Like this, the strategist can analyze the international enviroment, in order to determine whether it is advisable to expand the technological business or not.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
may give rise to conflicts of interest between dominant shareholders and small outside shareholders.
Explanation:
Concentration of ownership of a firm occurs when only a person or a few individuals own large portions of the company.
Decision making on important aspects of the business are taken by these circle of people.
Concentrated ownership is an internal governance system where the majority owners have high degree of control on how the business operates.
This leads to conflict between the major owners and other small shareholders. The small shareholders may feel left out in decisions concerning the business.
Answer:
Limitations :
1. ignores cash flows after payback period
2. ignores the worth of those cashflows over time
Explanation:
Payback Period is the length of time required for the total cash inflows to equal the initial capital investment.
In principle, the sooner the capital expenditure is recouped (paid back) the better and the more attractive the project is. Whilst the longer the period the less attractive the project is.
However, payback method ignores the fact that some projects in their initial phases start with little cash inflows which at a later stage increase significantly. Thus this method ignores cash flows after payback period. Also, this method ignores the worth of those cashflows over time ( ignores time value of money) for a dollar today is worth more than a dollar tomorrow.