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VikaD [51]
3 years ago
10

Which of the following statements about market share is true?

Business
1 answer:
nekit [7.7K]3 years ago
8 0

Answer:

B. All businesses will need a percentage of the market share to survive.

Explanation:

Businesses with small market shares can be successful, but a larger market share means more profit potential, lesser effort to sell more, and a stronger barrier against competitors entering the market. A business that is below the optimal level for market share should plan to develop its market share, while a business at the optimal level should plan to fight to maintain it.

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Question 4
SashulF [63]

1. The calculated capital budgeting techniques yielded the following results:

A. Accounting Rate of Return (AROR) is <u>28%</u>.

B. Payback Period Technique (PBP) is <u>5 years</u>.

C. Net Present Value Technique (NPV) is <u>RM33,588</u>.

D. Profitability Index (PI) is <u>1.056</u>.

2. The project should be accepted based on the positive results above.

3. The importance of capital budgeting techniques lies in the fact that they aid capital decision-making by measuring their probable outcomes.

<h3>What are capital budgeting techniques?</h3>

Capital budgeting techniques are capital investment evaluation tools.

Some of the capital budget tools include the Payback Period, Discounted Payment Period, Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.

These capital budgeting techniques help management to evaluate capital projects and to choose investment strategies.

<h3>Data and Calculations:</h3>

Investment cost = RM600,000

Cost of capital = 12%

            Net Cash Flows      PV Factor     Present Value

Year 0     RM600,000               1              (RM600,000)

Year 1       RM100,000           0.893                  89,300

Year 2            110,000            0.797                  87,670

Year 3            121,000            0.712                   86,152

Year 4            133,100            0.636                 84,652

Year 5            146,410            0.567                  83,014

Year 6    RM400,000            0.507              202,800

Present value of cash flows =                 RM633,588

Net Present Value                                      RM33,588

Total Net Cash Flows = RM1,010,510

Average Net Cash flows = RM168,418 (RM1,010,510/6)

Accounting Rate of Return = Average Income/Initial Cost

= 28% (RM168,418/RM600,000 x 100)

Payback period = 5 years

NPV = Initial Investment - PV of net cash flows

= RM33,588

Profitability Index = Present value of cash flows/Initial Cost

= 1.056 (RM633,588/RM600,000)

Learn more about capital budgeting techniques at brainly.com/question/17159659

#SPJ1

8 0
2 years ago
During 2019, Dowdy, a C corporation, realized a long-term capital gain of $8,000 from the sale of a tract of land, a short-term
postnew [5]

Answer:

The answer to the following question is $4000.

Explanation:

Dowdy which is a C corporation, has a total of $14,000 in capital gain, in which $8000 comes from sale of tract land and rest of $6000 comes from sale of stock. And the company also has a capital loss of $18,000. So here the company is having a long term capital loss of $4000 ( $18,000 - $14,000 ), and this C corporation can deduct this long term capital loss from their taxable income ( the year in which loss was incurred ) . If in a situation, loss is not deducted from this year , then it can be carried 3 years or 2 years or even 1 years back and if there is capital gain , it can be deducted from it.

8 0
3 years ago
Which of the following statements is right about facility location analysis?
RideAnS [48]

Answer:

The correct answer is letter "A": Facility location analysis considers the competitive imperative to be close to customers as to timeliness of deliveries.

Explanation:

Facility location is part of the research and computational geometry in charge of determining the localization of a company's branches to be closest as possible to the firm's target customers, workers, and suppliers by minimizing the costs. Other factors such as free trading zones or environmental policies are also taken into consideration.

3 0
3 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
A government deficit has increased from 30 to 50. The country's trade deficit is 100 and private savings equal 65 and investment
viva [34]

Answer:

If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

Explanation:

S - I = X - M, where

S = Sp + Sg, where

Sp: private saving

Sg: Public saving = T - G

Sp + T - G - I = X - M

or,

Sp - I = (G - T) - (M - X) = Budget deficit - Trade deficit

Initially,

65 - 30 = 90 - 100 = - 10

When budget deficit falls to 50,

Sp - 90 = 50 - 100

Sp = - 50 + 90 = 40

Therefore, If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

7 0
3 years ago
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