1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What technology uses a standard web browser to provide information, and gives the wireless user the opportunity to agree to a po
Lera25 [3.4K]

Answer:

Captive Portal Access Point

Explanation:

Based on the description provided it seems that the technology being mentioned is called a Captive Portal Access Point. This refers to a web page that is displayed as soon as you try to access a new Wi-Fi network. This web page requires the user to input login credentials (username and password) in order to gain access into the network and use all of the resources that the network can offer.

6 0
3 years ago
Describe your personal definition of leadership.
Inessa [10]
Leadership is showing the way to people and making people better.
5 0
3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Pepsi [2]
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)
4 0
3 years ago
Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personn
Vadim26 [7]

Answer:

$13,532 .00

Explanation:

The cost allocation is usually based on a measurable factor such as area occupied, number of students etc. The more the measurable factor related to a unit/department, the more the cost assigned to the departments on the basis of the size of the measurable value.

Total number of employees

= 640

the amount of cost allocated to Department B under the direct method would be

= 199/640 * $43,520

= $13,532

3 0
3 years ago
Arron, the CEO of a multinational corporation, believes that effective control in an organization comes from each employee's int
Nataly [62]

Answer:

Arron,the CEO of a multinational corporation believes that effective control in an organisation comes from each employee's internal motivation rather than from authoritarian control from top levels of management.In this scenario.Arron's beliefs are most consistent with <u>Human relations movement.</u>

<u>Explanation:</u> Human relations movement study the behavior of people.This movement originated from Dr .Elton Mayo's Hawthorne studies. According to this movement personal growth and development as well as goal setting for employees is essential for making business successful.

The organisations which overlook personal interest of employees cannot become successful. Hawthorne says that we can motivate the employees more by placing them in a team.

The employees of every organisation must communicate and convey information.They must understand the emotions of other employees.It will help in resolving various conflicts and arrive at the solutions quickly without wasting the time. It will improve relationships.

So human relation movement plays a very optimistic role in the success of a concern because an organisation's real assets are it's human resources.Without work force an organisation stands nowhere.

3 0
3 years ago
Other questions:
  • Kathy has taken a job with her ideal company and is excited to start in their sales department. Kathy is going to be spending so
    8·1 answer
  • Listed below are transactions that might be reported as investing and/or financing activities on a statement of cash flows. Poss
    7·1 answer
  • The manager of Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive
    14·1 answer
  • Arnell Industries has $35 million in permanent debt outstanding. The firm will pay interest only on this debt. Arnell’s marginal
    15·1 answer
  • Lenovo, HP, Dell, Acer Group, and Apple dominate 70% of the world market for personal computers). Smaller competitors survive by
    15·1 answer
  • A bond has a yield to maturity (YTM) of 9.00%. If the YTM decreases to 8.90%, then the price of the bond will_____.
    8·1 answer
  • On January 1, 2022, Swifty Corporation had Accounts Receivable of $ 51,900 and Allowance for Doubtful Accounts of $ 3,400. Swift
    12·1 answer
  • Can somebody please answer my question! <br><br> https://brainly.com/question/25800995
    12·2 answers
  • If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then
    13·1 answer
  • ou read in a newspaper that the nominal interest rate is 12 percent per year in canada and 8 percent per year in the u.s. suppos
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!