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ollegr [7]
3 years ago
11

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do

fine tailoring, much less simple dressmaking. Many potential customers are unable to appreciate the premium quality of the fabrics and are deterred by the high prices, as well as the complexity of fine sewing. In the past, the store had a strong demand for fabrics, large classes for women learning the fine points of sewing, and a reputation for excellent service and technical advice. Now the store is earning lower-than-average returns. This case is an example of:a. core competencies that have become core rigidities.b. the lack of intangible resources undermining the core competencies of the firm.c. the hazard of competitors being able to imitate a firm's core competency.d. the need for firms to stick to their core competencies through temporary downturns in market demand.
Business
1 answer:
eduard3 years ago
3 0

Answer:

The answer is: A) core competencies that have become core rigidities.

Explanation:

The core competencies of a business are what makes that business have an strategic advantage over its competition. In this case, the store sells the best high quality fabrics.

In the past the store had an strategic advantage since they sold a great product, but nowadays very few people are interested or willing to buy their fabrics. So what once was a core competency has now become a core rigidity. The store relied for too long on their core competency until it became obsolete. A textbook example for this is Kodak and its photographic film.

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An investment that has earned a high rate of return over the last 5 years will necessarily continue to perform well in the futur
bija089 [108]

The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.

The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.

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4 0
1 year ago
Commercial Construction Builders has a beta of 1.34, a dividend growth rate of 2.1 percent for the foreseeable future, a stock p
Effectus [21]

Answer:

10.412%

Explanation:

The computation of the average cost of equity of the firm is shown below;

The Cost of equity as per CAPM is

= risk free rate + beta × (market rate - risk free rate)

= 4.2 + 1.34 × (12.8 - 4.2)

= 15.724%

Now the Cost of equity as per growth model is

= (D1 ÷ Current price) +Growth rate

= [0.45 ÷ 15] + 0.021

= 5.1%

Now the Average Cost of equity is

= (15.724 + 5.1) ÷ 2 2

= 10.412%

7 0
3 years ago
What steps can a nation take to achieve economic growth?
GalinKa [24]
<span>The correct answer should be 2 and 4. Physical capital investing doesn't necessarily mean that there will be an increase in production, while import increase is bad for the economy because what you want is to export. Reducing the defense budget doesn't make your economy grow. Investing in human capital means that you help people educate so they can work better and produce more and come up with new things, and engaging in international trade makes your economy stronger too.</span>
8 0
3 years ago
Read 2 more answers
Jeremy was interested in science and math in school. In college, Jeremy studied to become an ecologist who studies the effect of
Amanda [17]

Answer:

The ways Jeremy can use math and science in his career are:

  • Perform scientific research.
  • In the evaluations and analyzes, he makes of his data collection.

Explanation:

Ecology is the branch of science that studies the interrelationships between organisms and their environment; ecology is an extensive branch by which ecologists can work in the field or laboratories.

Ecologists aim to study the diversity of the ecosystem and study how to make less impact on the environment.

In the case of Jeremy, who was interested in mathematics and science at school, now, being an environmentalist, he would use this knowledge in his scientific research when collecting data from his research. And how to calculate the effect of fertilizer on wildlife this through the analysis and evaluation of its collected data.

I hope this information can help you.

5 0
3 years ago
the relationship between the factors of production used by a firm and the maximum output possible is called the
elena-14-01-66 [18.8K]

In economics, a factor of production, resource, or input is what is used in a production process to produce products, i.e. goods or services.

The amounts of various inputs used determine the amount of output according to a relationship known as the production function. The relationship between the inputs a firm uses and the maximum output it can produce with those inputs is called the firm's production function. Factors of production are outputs or inputs used to produce goods and services. They are the resources a business needs to make a profit by producing goods and services. Factors of production fall into four categories: Land, Labor, Capital, Entrepreneurship.

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3 0
11 months ago
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