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Vlad [161]
3 years ago
12

The CEO of Lexington decides to impose a transfer price since the two divisions cannot agree. She chooses the highest feasible p

rice. Her reasoning is that selling for a high price is better for Lexington's profit. Is the CEO's reasoning sound? Explain why or why not.
Business
1 answer:
Sloan [31]3 years ago
8 0

Answer: Not Sound as Company does not benefit as a Whole.

Explanation:

This question alludes to the presence of Divisions in a company tasked with producing different segments of a good.

One Division makes a segment of the good and transfers it for a price to the other division so that they may be able to show Revenue on their books.

The reasoning of the CEO of Lexington is flawed because if she chooses the highest feasible Transfer Fee for the goods it will be good for the Division doing the Transferring because they make more revenue.

However, it will increase the cost of those being transferred to by the same amount that it increase the revenue of the Division transferred from.

As a result, the increase in Cost and the Increase in Revenue in the two divisions will cancel each other out meaning that the company did not benefit.

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A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing
dusya [7]

Answer:

The answer is: It will take Mexico 28 years

Explanation:

In 2005, Mexico´s GDP per capita (MGDPpC) was only $11,000 which represented one fourth of the United States´ GDP per capita (USGDPpC) of $44,000.

The ratio of GDP per Capita between Mexico and the United States is 1:4

So when MGDPpC doubles the first time, the ratio will be 2:4 (or 1:2), so when it doubles again the ratio will b 1:1. So in order for MGDPpC to equal the amount of USGDPpC in 2005, it would need to double twice.

To find out how many years it will take Mexico to double its GDP per capita once, we must divide 70 by 5, which equals 14 years.

Since it takes Mexico 14 years to double its GDP per capita, it will take them 28 years to double it twice.

8 0
4 years ago
Lisa Sumaya has decided to give up her full-time job to complete her master
ICE Princess25 [194]

Answer: Financial effects poses as economical risk while an improvement in career and better opportunity poses as potential economic benefit

Explanation:

One potential economic risk Lisa would have to face is that she would have issues with finances for the time being between when she resigned from her job, through her Master's and till she gets another job.

One potential economical benefit towards this decision is that she would have made an advancement in her career and would be at better place career wise and worth wise to compete for better jobs and improved pay from the place she left.

4 0
3 years ago
Imagine that you have invented a new snack food product and would like to market it to college students. What are some of the ad
valentina_108 [34]

Explanation:

An advertising message to be attractive and generate the desired effect, it must reach its potential audience through communication aligned with the interests and desires of the potential audience.

Firstly, as the potential audience is students, it would be ideal to use an advertising communication channel such as social media, where there is a large presence of young people.

It is ideal that advertising involves elements of student culture to generate identification, desire and proximity to the potential audience, so a good choice would be to develop a campaign that involves the product with sports for example, the snack company could be more involved with the culture students, such as sponsoring a college football team and advertising their brand at games, or distributing free snacks at college events.

5 0
3 years ago
Which of the following is an example of raw data from an automobile manufacturer? Annual sales of Subaru Outbacks increased 4.5
m_a_m_a [10]

Answer:

One Subaru Outback sold January 7, 2017 in Mount Kisco, New York for $25,000.

Explanation:

Raw data typically refers to tables of data where each row contains an observation and each column represents a variable that describes some property of each observation. Data in this format is sometimes referred to as tidy data, flat data, primary data, atomic data, and unit record data. Sometimes raw data refers to data that has not yet been processed.

4 0
4 years ago
Most founders' agreements include a buyback clause, which legally obligates the departing founder to sell to the remaining found
Rashid [163]

Answer:

Yes

Explanation:

This type of agreements are generally signed in order to protect the foundling members of a business that decide to continue working. Generally, founding members have a large participation in the business or even have certain special stocks that grant them higher voting power. In order for the remaining founders to be able to keep managing the company, they sign this type of agreements so that other external investors do not replace them.

7 0
3 years ago
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