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Ludmilka [50]
3 years ago
7

Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

specialized investments. What are the primary advantages and disadvantages of acquiring inputs through this means? Give an example not used in the textbook that uses this method of procurement.
Business
2 answers:
solmaris [256]3 years ago
6 0

Answer:

the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is <u>Contracting.</u>

Explanation:

Contracting requires writing an agreement that extends the relationship between a buyer and a seller

The key features of contracting includes

  • specialization
  • reduced opportunism
  • avoidance of skimping on specialized investment
  • expensive in complex environments

The primary advantage of using contracting is specialization and the main disadvantage is high cost.

U.S. Shell Oil Company is the United States which is among the largest oil companies in the world is a good example of a company that uses Contracting method for procuring inputs.

son4ous [18]3 years ago
3 0

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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You consider buying a share of stock at a price of $24. The stock is expected to pay a dividend of $1.32 next year, and your adv
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2%

Explanation:

Actual return = [(Dividend + Capital gain) / Purchase price] * 100

= [($1.32 + $27 - $24) / $24] * 100

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Abnormal return = 18% - 16%

Abnormal return = 2%

5 0
3 years ago
________ advertising may use any advertising medium, but it differs from other types of advertising in that it tries to stimulat
AlekseyPX

Answer:

Direct Response Advertising

Explanation:

Direct response advertising is different from all other forms of advertisements in a way that it stimulates more fast, quick and efficient response from the cosumer. It persuades customers to act rapidly and instantly. Sales can be increased quite fast by using this form of advertisement. Toll free numbers are mentioned, road shows, exhibitions, discount offer sms, free coupons are presented which customers have to cut and send to the company to get them redeemed. This type of advertisement has gained a lot of success now-a-days.

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3 years ago
Having a savings account can contribute to a person’s overall financial well-being. Which one of the following is not a benefit
babunello [35]

Answer:

Having a savings account can contribute to your overall financial well-being by providing you with the security to expect the unexpected, allow you to invest when opportunities arise, provide you with the means to fulfill your dreams, and to give back to your community. I hope it will useful

Explanation:

7 0
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Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.
xenn [34]

Answer:

Asset Account is decreased.

Liability Account is also decreased.

No effects on Capital Stock.

No effects on Retained Earnings.

Explanation:

Asset Account is decreased by $5000 because Cash is paid for the purchases made on account last month.

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