A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence.
The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.
<h3>What is Joint Venture?</h3>
A joint venture is a child company of two parent companies.
It’s maintained by sharing resources and equity with a binding agreement. Whether it’s formed for a specific purpose or an ongoing strategy, a joint venture has a clear objective, and profits are split between the two companies.
<h3>What is Non – Equity Strategic Alliance?</h3>
In a non-equity strategic alliance, organizations create an agreement to share resources without creating a separate entity or sharing equity.
Non-equity alliances are often more loose and informal than a partnership involving equity. These make up the vast majority of business alliances.
Learn more about strategic alliances here:
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The answer to this question is what we called the low cost strategy. The low cost strategy is a type of pricing strategy where in the company offers a very low price for its products and services in order to produce more goods and service. The price for this strategy is more cheaper than the competitors.
Answer:
The correct answer is letter "C": Increase the price of electricity during peak times.
Explanation:
The best form to regulate the use of electricity during peak hours would imply increasing the price of the power service. This will cause people to use the utility moderately to avoid increasing their expenses. By demand law, <em>as long as the price increases, the quantity demanded tends to fall.</em>
Answer:
Gain in PV = $1,449,268
Explanation:
Annual % of gross ticket sales = 5% * $50,000,000
Annual % of gross ticket sales =$2,500,000
Present value of annuity = Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity = $2,500,000[1-(1.03)^-5]/0.03
PV = $2,500,000*4.579707187
PV = $11,449,268
Gain in PV terms= =$11,449,268-$10,000,000
Gain in PV = $1,449,268
Answer:
Accumulated Depreciation As of December 31, 2010 = $105,000
Explanation:
<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>
<em>Annual depreciation:</em>
= (cost of assets - salvage value)/ 5 years
= (180,000 -30,000)/5
=.$30,000
<em>From July 1 2007 to December 31 2010 = 3 years 6 months = 42 months</em>
So total accumulated depreciation at the end of 3 years 6 months :
= ( 30,000/12) × 42
= $105,000
Accumulated Depreciation As of December 31, 2010 = = $105,000