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3 years ago

What is the Porter's 5 forces model?

Business

1 answer:

neonofarm [45]3 years ago

4 0

Answer:

Created by a Professor Michael E. Porter, from Harvard, this model explains the various forces applied to a business.

Competition in the industry : Are there competitors in the industry? If so, are they numerous and weak or is the industry dominated by a few major players?

Potential of new entrants into the industry : What's the risk of having new competition? If you are selling a product, can you protect it with a patent for example?

Power of suppliers : Can the suppliers of what you need easily affect the prices? It's basically asking if there is competition in your suppliers' market.

Power of customers : That related to your customer base. If your customer base is large, chances are no individual will be able to force your price down. But if you are dealing with a limited number of customers, one of them might force you to lower your prices.

Threat of substitute products: Is there any comparable product/service offered at a lower cost that might bring your prices down?

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A friend asks to borrow $ 50 from you and in return will pay you $ 53 in one year. If your bank is offering a 5.7 % interest rat

Sergio [31]

Answer:

52.85 / 50.14 / yes

Explanation:

the key to answer this question is to understand the logic of present values / future values:

$FV=PV*(1+i)^{n}$

$PV=FV*(1+i)^{-n}$

where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:

a. if we deposit today 50, we are been asked to calculate the future value, so:

$FV=50*(1+0.057)^{1}$

$FV=52.85$

b.if we want to have 53 in one year, we are been asked to calculate a present value:

$PV=53*(1+0.057)^{-1}$

$PV=50.14$

c. is clear that is better to borrow to the friend because in one year he will pay more than bank

4 0

3 years ago

Avril Company makes collections on sales according to the following schedule: 25% in the month of sale 71% in the month followin

joja [24]

Answer:

The correct answer is:

$110,300

Explanation:

This question is to test your ability to convert from percentages to actual amounts, so, to begin, we will first of all lay out the information given plainly.

25% in the month of sale = 0.25 × amount in the month of sale
71% in the month following sale = 0.71 × amount in the month following sale
4% in the second month following sale = 0.04 × amount in the second month following sale.

Next, we are asked to calculate the cash collections for the month of March. To do so, we are going to calculate the total cash collections accumulated from the sales in January to March, according to the information given in the list above. This is calculated as follows:

From January sales ($180,000)

March is the second month following January, hence, from the information given, 4% of the sales in January will be collected in March.

0.04 × 180,000 = $ 7,200

From February sales ($110,000)

March is the month following February, hence the amount of February sales collected in March is 71% of the sales in February. This is calculated as follows:

0.71 × 110,000 = $78,100

From March sales ($100,000)

The Percentage of sale from the month of sale is 25%, therefore, the amount collected in March from the sales for March is calculated as follows:

0.25 × 100,000 = $25,000

Finally, we will add the total amounts from the sales from January to March, and this is shown below:

7,200 + 78,100 + 25,000 = $110,300

5 0

3 years ago

Amy and Lance are newlyweds. This is Lance's second marriage. Because of problems that occurred before his divorce (his ex-wife

yanalaym [24]

Answer:

c. Tenancy by the entirety

Explanation:

Based on the information provided within the question it can be said that in this scenario the best account recommendation would be a Tenancy by the entirety. This is an account in which each spouse in a marriage has an equal and undivided interest in the account and approval from both parties is needed to empty out the account.

8 0

3 years ago

If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what

skelet666 [1.2K]

Answer: 17.52%

Explanation:

Equity Multiplier = 1.63

Total asset turnover = 2.50

Profit margin = 4.3%

Rate of Return = Equity Multiplier × Asset turnover × Profit margin

= 1.63 × 2.50 × 4.3%

= 1.63 × 2.50 × 0.043

= 0.175225

= 17.52% approximately

5 0

3 years ago

1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Acc

Marina CMI [18]

Question Completion:

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $18,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $544 cash. c. The company purchased $10,369 of office equipment on credit. d. The company received $2,212 cash as fees for services provided to a customer. e. The company paid $10,369 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,975 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,670 cash as partial payment for the account receivable created in transaction f. i. The company paid $1,000 cash in dividends to the owner (sole shareholder).

Answer:

Spade Company

General Journal Entries:

a. Debit Cash $18,750

Credit Common stock $18,750

To record cash contributed in exchange of common stock.

b. Debit Office supplies $544

Credit Cash $544

To record the purchase of office supplies.

c. Debit Office Equipment $10,369

Credit Accounts Payable $10,369

To record the purchase of office equipment on account.

d. Debit Cash $2,212

Credit Fees Earned $2,212

To record the receipt of cash for earned fees.

e. Debit Accounts Payable $10,369

Credit Cash $10,369

To record the payment for office equipment.

f. Debit Accounts Receivable $3,975

Credit Fees Earned $3,975

To record the supply of services on account.

g. Debit Rent Expense $530

Credit Cash $530

To record payment for monthly rent.

h. Debit Cash $1,670

Credit Account receivable $1,670

To record the receipt of cash on account.

i. Debit Dividends $1,000

Credit Cash $1,000

To record the payment of cash dividend.

2. T-accounts:

Cash

Account Title Debit Credit

Common stock $18,750

Office supplies $544

Fees Earned 2,212

Accounts Payable 10,369

Rent Expense 530

Account receivable 1,670

Dividends 1,000

Accounts receivable

Account Title Debit Credit

Fees Earned $3,975

Cash $1,670

Office Supplies

Account Title Debit Credit

Cash $544

Office Equipment

Account Title Debit Credit

Accounts Payable $10,369

Common Stock

Account Title Debit Credit

Cash $18,750

Accounts Payable

Account Title Debit Credit

Office Equipment $10,369

Cash $10,369

Fees Earned

Account Title Debit Credit

Cash $2,212

Accounts Receivable 3,975

Rent Expense

Account Title Debit Credit

Cash $530

Dividends

Account Title Debit Credit

Cash $1,000

Explanation:

a) Data and Analysis:

a. Cash $18,750 Common stock $18,750

b. Office supplies $544 Cash $544

c. Office Equipment $10,369 Accounts Payable $10,369

d. Cash $2,212 Fees Earned $2,212

e. Accounts Payable $10,369 Cash $10,369

f. Accounts Receivable $3,975 Fees Earned $3,975

g. Rent Expense $530 Cash $530

h. Cash $1,670 Account receivable $1,670

i. Dividends $1,000 Cash $1,000

6 0

3 years ago