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deff fn [24]
3 years ago
7

In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the

land for $100,000 in 1992. When she acquired the option in 1985, the land was worth $120,000. In 1992, it is worth $110,000. Should Alice exercise the option and pay $100,000 for the land?
Business
1 answer:
nata0808 [166]3 years ago
8 0

Answer:

Alice should exercise the option and pay $100,000 for the land.

Explanation:

As Alice has paid $20,000 for the option to acquire the land of ten acres.

In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.

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. Which of the following is not a way business markets and consumer markets differ?
Nataliya [291]

<em>The nature of the buying unit is not a way business markets and consumer markets differ</em>

<u>Answer:</u><u><em> </em></u><em>the nature of the buying unit</em>

<u>Explanation:</u>

Consumer market is basically a market that is Business to Consumer whereas a business market is mainly B2B market.

Most business marketers commit only a small part of their promotional budgets to advertising, and that is usually through direct mail efforts and trade journals It can be seen that it is due to the market structure and demand. the nature of the buying unit is not a way to differentiate.

6 0
3 years ago
he nature of B2B markets requires ________. Group of answer choices companies to focus primarily on selling products that end up
vladimir2022 [97]

Answer:

a more personal relationship between the buyer and seller than in B2C markets

Explanation:

B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.

B2B (business-to-business) model focuses on facilitating sales transactions between businesses.

Under the B2B, the producer sells its products directly to other businesses such as wholesalers or retailers and not the end consumers.

On the other hand, the B2C market involves businesses selling their goods and services directly to the end consumers or users for personal use.

The nature of B2B markets requires a more personal relationship between the buyer and seller than in B2C markets.

6 0
2 years ago
Mary knits sweaters for sale. Her fixed costs are $100. When she makes 10 sweaters in one month, Mary must spend $15 on wool. To
34kurt

Answer:

$2

Explanation:

Given that

The fixed cost = $100

Cost on wool if 10 sweater are made in a month = $15

Cost on wool if 11 sweater are made in a month = $17

Since it involves no other cost

So, the marginal cost of the eleventh sweater is

= Cost on wool when 11 sweater made in one month - Cost on wool when 10 sweater made in one month

= $17 - $15

= $2

4 0
3 years ago
Alzania produces and consumes​ 500,000 tons of cotton during a year. Reports indicate that​ Alzania's neighbor, which also emplo
Rama09 [41]

Answer:

The answer is: E) workers in Alzania have higher productivity due to better education and training.

Explanation:

Alzania and its neighbor both produce cotton and they both have the same amount of workers in the production of cotton. If Alzania is able to produce more cotton (or any type of product) using the same amount of resources (in this case labor) than its neighbor, we can conclude that Alzania does have an absolute advantage in that industry.

This absolute advantage exists because Alzania's workers are more productive than their neighbor's workers.

For example, lets say both countries have 5,000 cotton workers. Alzania produces 100 tons of cotton per worker, while its neighbor only produces 80 tons of cotton per worker. That means Alzania's workers are more productive, and labor usually gains productivity through education or training.

4 0
3 years ago
Bharti Airtel is the largest cellular provider in India, with more than 300 million customers as of 2014. It also supplies broad
12345 [234]

Answer:

An opportunity.

Explanation:

Businesses conduct a SWOT analysis when they want to identify their internal weaknesses and strengths, it is also used to identify external opportunity and threats.

Firms use the analysis to develop a competitive strategy in the market by taking advantage of opportunities presented while mitigating risk posed by threats in the industry.

In this scenario Hutchinson Essar obtained a 5.6% stake in Airtel fr Vodafone. This transaction resulted in movement of knowledge and technology previously available to Airtel to one of its competitors.

This was an opportunity for Hutchinson Essar.

7 0
3 years ago
Read 2 more answers
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