If resources are allocated politically, rent-seeking will be a waste of resources.
Within strategic planning, you want to plan where and how the resources will be used. The goal is not to waste resources on one thing when they can be put to better use elsewhere.
Answer:
D. Shoes Cult has a competitive advantage over Aros.
Explanation:
Competitive advantage is defined as the advantage an entity has when they are able to produce a good at cost that is lower than the cost incurred by other parties in the same industry. This results in higher profit margins for businesses that have low production cost.
In this scenario Aros produces shoes for $20 while Shoes Cult produces the same shoes for $22. They both have the same price ceiling of $30.
Aros has competitive advantage over Shoes Cult because they produce at a lower cost and make more profit than Shoes Cult.
Assume they both sell at the maximum price. Profit for Aros= 30- 20=$10
Profit for Shoes Cult= 30-22= $8
What's your question I don't understand
Answer and Explanation:
The computation of the return on investment is shown below;
We know that
Return on Investment is
= (Net Income ÷ Average Operating Assets] × 100
For Electronics
= [$29,16,000 ÷ 162,00,000] × 100
= 18%
And,
For Sporting goods
= [$20,74,000 ÷ 122,00,000] × 100
= 17%
So here the electronics department should be selected as it has high return on investment