Answer: The newly created firms is able to take advantage of economies of scale.
Explanation:
A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.
One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.
Answer:
- I think Ben should encourage the Senior Management to call a multidisciplynary meeting and do some research.
Explanation:
<em>I think Ben is right</em>. Even though the statement is technically correct, it may mislead customers.
Customers may interpret the phrase "<em>no sugar added</em>" as if the product did not contain any sugar.
Thus, customers interested in drinking beverages without sugar at all might think they are "safe" consuming the smoothie beverage, when in reallity each <em>smoothie's bottle contains sugar 35 g of naturally occurring sugars from the fruit.</em>
Customers deserve to be certain on what they are buying, thus the labels must be a sincere help for them, and not ambiguos at all.
This is a "gray zone" and an example of what in ethics is called a dilema.
I think the decision should be shared by a wider team and based on some research.
I think Ben should encourage the Senior Management to call a multidisciplynary meeting, where the subject is widely discussed. Also, I would suggest Ben to do some research, look for precedents about labeling in the industry, and try to learn the opinion of the FDA about this sensitive matter.
Answer:
Feb. 1 DR Cash $400,000
CR Tax anticipation notes $400,000
Dec 31 DR Expenditures - Interest $3,666.67
CR Accrued Interest Payable $3,666.67
Working
February to December = 11 months
Interest = 400,000 * 1.0% * 11/12 months = $3,666.67
April 1 DR Investments $100,000
CR Cash $100,000
Sept. 30 DR Cash $50,200
CR Investments $50,000
Interest Income $200
Working
Interest Income = 50,000 * 0.8% * 6/12 months
= $200
Answer:
$40,000 per year; $37,500 per year; $40,000.
Explanation:
From the question above, we are given the following parameters; Alpha Firm offers a salary = $40,000 per year + no bonuses, "Beta Firm offers a base salary of $35,000 per year with a 25% chance that you will receive an annual bonus of $10,000".
So, to answer the question,the expected salary of working for Alpha Firm will surely be = $40,000 per year.
At Beta Firm the expected salary is = $35,000 + 0.25($10,000) = $37,500.
Therefore, if I was risk neutral, the expected value of the year bonus offered by Beta Firm would need to be at least $40,000 for me not to be indifferent to the choice between the two options.
<span>The correct answer is B - a 10% increase in cigarette prices has been found to result in a 4% decrease in smokers. This is just the figure for the overall nation though, for young people the figure is higher, and for children higher still.</span>
