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4 years ago

Using contract manufacturing as a strategy to reach global markets gives firms the advantage of

Business

1 answer:

lesya692 [45]4 years ago

7 0

Answer: C. reduced risks

Explanation:

Contract manufacturing refers to when a company outsources the production of certain goods or components that it normally produces to another company and in terms to global markets, to another company in another country ad this is usually done to reduce costs as the company that the production was outsourced to can produce at a cheaper price.

By using this method to reach global markets, the contracting company would be able to reduce financial risk which is the risk that a project will not payback because the costs associated will become less therefore the chances of the project paying back will increase simply because it only has to cover a lesser cost of production.

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How to calculate the free cash flow of the firm (also referred to as the firm’s free cash flow) directly?

VashaNatasha [74]

Answer:

Explanation:

The formula to compute the free cash flow of the firm is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure

In this we deduct the changes in net capital and net capital expenditure and added the depreciation and amortization expenses to the Earning after tax so that the correct amount can be computed

4 0

4 years ago

Banks that have national charters must join the Federal Reserve and are subjected to its

aleksandrvk [35]

Answer: True

Explanation:

The Federal Reserve requires that all banks with National charters become members of the Federal Reserve so that they may have a say in the way the Fed runs its operations. State banks are not required to join but can if they meet some requirements.

The Office of Comptroller of the Currency (OCC) continually supervises and examines national banks to ensure that they are engaged in best practices regarding their operations and treatment of customers.

8 0

3 years ago

Today's Fashions has a debt that has been properly reported as long-term debt before this year. Part of this debt is due this ye

siniylev [52]

Answer:

Current ratio will be overstated

Explanation:

Current ratio measures the short term solvency of a firm. In other words, it measures the ability of the firm to meet its current obligations. It is the ratio of current assets to current liabilities.

A part of long term liability that is to be paid this year is considered current liabilities. If today's fashion continues to report debt due in the current year as long term liability, then current liabilities reported would be lesser than the actual position. As such, current ratio calculated would be higher than what it is actually. So, current ratio will be overstated in this case.

5 0

3 years ago

What form of FDI is NOT an option in the service industry, due to the fact that many services have to be produced where they are

ankoles [38]

Answer: C. exporting

Explanation:

As many services have to be produced where they are sold, Exporting is not very ideal in the Service industry even if it might work here and there.

Exporting is a form of FDI that means sending the good in question to another country and this is not ideal when services are needed.

For instance, you need your hair cut in Maine but Maine uses exported Barbers from Mexico City, the logistics of such a business are to understate it, untenable. The barber should be in Maine.

8 0

4 years ago

For each scenario, calculate the cross-price elasticity between the two goods and identify how the goods are related. Please use

My name is Ann [436]

Answer:no relationship,substitutes and complements

Explanation:

A 20% price increase for Product A causes a 10% decrease in its quantity demanded, but no change in the quantity demanded for Product B.

The answer is : Cross-Price Elasticity=0, Relationship=no relationship

Product C increases in price from $1 a pound to $2 a pound. This causes the quantity demanded for product D to increase from 27 units to 81 units.

Answer: Cross price elasticity 81/54=1.5, relationship=substitutes

When the price of Product E decreases 2%, this causes its quantity demanded to increase by 14% and the quantity demanded for Product F to increase 17%.

Answer: Cross-Price elasticity which is = -8.5, relationship= complements

3 0

4 years ago