Answer:
b. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.
Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this information only, an argument can be made that Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.
Answer:
True
Explanation:
If lean production totally eliminates inventories, the net operating income computed under the absorption and variable costing methods should be equal. If lean production only reduces inventories, then the difference in net operating income under the two methods will be reduced.
Lean production is a system of production that tries to eliminate bottlenecks in the flow of goods by employing tools like just in time (JIT), Kaizen, and the 5S of Sort, Set in Order, Shine, Standardize, and Sustain, among others. It attempts to cut costs, reduce unnecessary inventory, shorten production cycle, speed response time, grant employees autonomy, and reduce waste of resources while ensuring high quality and customer satisfaction.
Lean production employs some principles in order to achieve efficiency. They are: 1) definition of value, 2) mapping the value stream, 3) creating efficient flow, 4) using a pull system, and 5) pursuing perfection in all aspect of production activities. The Lean approach can be applied to services and other aspect of business, like system, structure, and organization.
Answer:
a.
Primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government while secondary sources can be generally defined as interpretations of the law done by non-governmental entities.
b.
The type of authority which professional tax research conclusions should be based on are the primary sources.
Explanation:
a.
Primary sources of tax information are documents that are provided directly by an authority usually the government. Primary sources usually carry heavy weight especially when there is a conflict in the understanding of a federal tax law. These sources are often used by law practitioners as a basis in understanding cases of a similar nature. Some examples of primary sources of tax information include; internal revenue code, final and temporary regulations, non-codified federal tax statutes, and judicial decisions on tax matters. In general primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government. They can be used in a case where a tax payer in arguing his or her case about their tax position in a court of law.
Secondary sources of tax information are documents that are provided by information vendors who provide research services, legal analysis and tax professionals. These sources usually rely on the professionalism and experience of individuals who have gained a reputation on tax law for advice and direction. Some examples of secondary sources include; legal periodicals like academic journals, legal analysts, scholars and tax law reporters. Secondary sources can be generally defined as interpretations of the law done by non-governmental entities.
b.
Professional research is usually done to enable one advance in his/her career in order to gain acceptance as an expert in that particular field. For one to join the ranks of a professional, they first need to prove their mastery of the knowledge in that particular profession. In our case, one needs to be aware of the law as provided by an authority. This means that one needs to argue his/her case in reference to the primary sources since these sources carry more weight in terms of understanding and experience as opposed to secondary sources that represent personal views that might be susceptible to bias. On this note, the type of authority which professional tax research conclusions should be based on are the primary sources.
Answer:
Option e: Increased opportunities for growth
Explanation:
Global trade is simply the exchange of goods between different countries.Trade is an exchange of items between people or countries.Countries are able to obtain goods they need from other countries.
four major risks in international business includes Country risk, commercial risk, cross-cultural risk, and currency risk.
Increased opportunities for growth is not an effect of risk in global trade.
