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rjkz [21]
3 years ago
15

A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true? The manufacturer has

effectively reduced its operating costs by outsourcing its activities. The manufacturer has enhanced utilization by allowing depreciation and other fixed costs to be spread over a larger unit volume.
Business
2 answers:
erma4kov [3.2K]3 years ago
7 0

Answer:

The correct answer is letter "C": The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.

Explanation:

Vertical integration occurs when a company purchases and controls other companies along its supply chain. There are two types of vertical integration: backward and forward. In the context of backward vertical integration, a company such as a manufacturer owns companies that supply inputs to manufacturing processes. A corporation owns another business in forward vertical integration, to get closer to the ultimate customer in the supply chain.

Therefore, <em>a potato chip manufacturer by buying a potato farm is engaging in backward vertical integration.</em>

astra-53 [7]3 years ago
6 0

Question:

A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?

A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.

B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.

C. The manufacturer has sacrificed quality by using a lower-cost input.

D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.

E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.

Answer:

A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.

Explanation:

Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.

It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.

An example of companies who have done this are:

1. Apple

2. Netflix

3. Comcast (Which acquired NBC)

Businesses can integrate by

  • purchasing their suppliers to reduce the costs of manufacturing or
  • controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.

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lisov135 [29]
D) All of the above because they all go through a process called “transferring” which means connecting to someone else’s device through WiFi and transferring payments through there.
7 0
2 years ago
When companies recruit people to promote products to friends and other contacts in exchange for free samples or other​ rewards,
barxatty [35]

Answer:

The answer is: Referral marketing

Explanation:

Referral marketing is like word of mouth marketing, but with a reward.

We are all social creatures, some more than others, and we like to tell our friends about things that might be considered interesting, new, good, etc (a little gossip). We also know by now that advertisement is usually not 100% accurate, so we don´t fully trust it. When one of our friends tells us that they tried product X and it was great, we do trust them and probably will end up buying product X.

4 0
3 years ago
Carmine Inc. is a software firm that caters to the requirements of its clients. At Carmine, work teams have access to all vital
gladu [14]

Answer:

b. employee job satisfaction

Explanation:

Based on the information provided within the question it can be said that the employee-friendly workplace culture is most likely to increase job satisfaction. This term refers to the level at which an individual is happy or content with the job that they are doing as well as what it represents to them. Therefore the information made available helps motivate the employees which increases their mood and contentedness with their job.

6 0
3 years ago
a mortgagge loan in which the interest rate charged fluctuates with the level of current interest rates is called
solmaris [256]

Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.

An interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that is interest rates subject to Variable interest rate regular changes is known as a variable interest rate (also known as an "adjustable" or "floating" rate).

A variable interest rate has the obvious advantage that if the underlying rate or index decreases, so do the borrower's interest payments. On the interest rates other hand, if the underlying index increases, interest payments rise. Fixed interest rates are stable, as opposed to variable interest rates.

Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.

Learn more about Variable interest rate here

brainly.com/question/2496648

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8 0
1 year ago
Masterson Company's budgeted production calls for 71,000 units in April and 67,000 units in May of a key raw material that costs
Arte-miy333 [17]

Answer:

70,200 units

Explanation:

Calculation to determine the budgeted materials purchases for April

Using this formula

Budgeted material needed for april=April budgeted production calls +

+ (Ending inventory*Ending inventory percentage)- Beginning inventory

Let plug in the formula

Budgeted material needed for april= 71,000 + (67,000*20%) -14,200

Budgeted material needed for april= 71,000 + 13,400-14,200

Budgeted material needed for april= 70,200 units

Therefore the budgeted materials purchases for April is 70,200 units

4 0
2 years ago
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