Answer:
Financial leverage
Explanation:
Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).
When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.
Use of equity is the only option where no extra cost is incurred for use of funds.
When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.
This practice is called use of financial leverage.
Answer: Create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs.
Explanation:
An emerging market is the economy of acountru that's developing and therefore,.such country is becoming more engaged with the global markets due to its growth and expansion as it grows.
The advise that'll be given to Patagonia to omit from consideration in crafting a strategy to enhance future profits in these two emerging markets is to create a sales plan that aims to enhance initial sales and market penetration with low prices based on high operational costs.
Answer:
A cost-benefit analysis involves subtracting the sum of all the business costs from the business benefits.
Explanation:
Business is the act of exchanging goods and services for commercial purposes. The main aim of conducting a business for most people is to increase sales and make profit. In order to do this, there are business decisions that go into the running of business that determine how the business will perform. Most of these decisions if taken into account can lead to overall business success. There are different methods in economics that can aid a business person to make a decision, however, in this case we will consider the cost-benefit analysis as a tool of economics that can be used to make business decisions.
As indicated above, a cost-benefit analysis is a method that businesses often use to arrive at decisions. The analysis is done by first assigning monetary units to all the activities and processes that will go into the business. The total costs are then calculated from all the expenditures that will be incurred in the business. The benefits are then calculated from all the revenue expected to be got from the business. The costs are then subtracted from the benefits. The result can be either zero, negative or positive. A zero result implies that the business will break-even, there will be no losses or profits. A negative value implies that the business will go to a loss thus not advisable to venture in it. A positive result shows that the business will be profitable therefor it would be beneficial to venture into it.
Answer:
The equilibrium price would increase, and the equilibrium quantity would decrease.
Explanation:
With an increase in the cost of steamed milk, the cost of materials, one of the key factors in pricing decision would rise, which means that the equilibrium price of lattes would also increase. With an increase in price, according to the law of demand, there is a decrease in demand. Therefore, the quantity of lattes sold at the new equilibrium price would decrease.
The equilibrium price would increase, and the equilibrium quantity would decrease.
Answer:
Distribution and Logistics
Explanation:
Logistics are the activities of a company related to distributions of its product. It encompasses all efforts of moving goods from the factory to the retailers for sale to the customers. Transport and warehousing are part of logistics.
The distribution and logistics department plans, organize, and manages the movement of products to their intended destination. Nikki is most likely to be in the distribution and logistics career path. She ensures that the supply chain is running efficiently and tracts the movement of products.
