increase return means more profit is comming in from product that more consumers are buying. say a grocery store bought 80 gal. of milk at 1.00 a gallon, and a snowstorm is predicted for the next week, store charges 2.00 a gallon. bcause of weather, ppl are stocking up on supplies. the store can charge more for product if demand is higher ....
Based on Gamma Inc's asset turnover, operating margin, and debt burden, the Return on Equity would be<u> 11.48%. </u>
<h3>What would be Gamma's Return on Equity?</h3>
This can be found by the formula:
= Asset turnover x Operating profit margin x Leverage ratio x Debt burden
Solving gives:
= 0.85 x 0.15 x (1 / (2/3)) x 0.6
= 11.475%
= 11.48%
In conclusion, the ROE is 11.48%.
Find out more on ROE at brainly.com/question/13442889.
The benefits of establishing a pay structure that helps the organization achieve its goals include:
- Employee motivation
- Cost control
- Ability to attract and retain talented human resources
<h3>What is the benefit of a good pay structure?</h3>
A good pay structure means that employees are adequately compensated for their work. This can help a lot with employee motivation because a huge part of the motivation that employees feel to work towards helping an organization to achieve its goals are monetary.
If a company is able to use its pay structure to engage in employee motivation, there will be better cost control from the company being able to reduce its recruitment costs, and having employees that are retained for long enough to know how to use resources efficiently. It is therefore important that when coming up with a pay structure to help achieve company goals, it should compensate employees adequately.
Options for this question include:
- Employee motivation
- Quality loss
- Cost control
- Increased budget
- Ability to attract and retain talented human resources
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Answer: The options are given below:
A. Both firms can behave opportunistically towards one another to keep the other from gaining competitive advantage.
B. Both firms can achieve competitive advantage over one another, even if they are operating in the same product market, by using each other's most valuable resources.
C. One firm can gain competitive advantage by taking advantage of its partner's resources and giving its partner less valuable resources.
D. Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage.
The correct option is D.
Explanation: A strategic alliance is a business agreement that two or more companies come together in order to undertake a project that will be beneficial to all the involved parties, while each retains its independence.
This kind of agreement is not as complex and much less binding as a joint venture, where businesses pool together their resources in order to create a separate business entity.
A strategic alliance will help a company remain relevant because the companies, will through this alliance, increase their customer base, have access to new technologies, diversify their products and services, and even reduce overhead and administrative costs, as they offer top quality service to their customers. In this way, the companies involved in the agreement companies will get an edge over their competitors.