1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zepler [3.9K]
3 years ago
12

When Moon Star Products Inc. planned to start its operations in United Cadvia, an emerging nation, it realized that it will have

to set up its own distribution channels. This would be a risky and an expensive strategic move. The company had an option of hiring a small supply chain management company, Gold Logistics Inc., to reach its ultimate customers. However, this would require Gold Logistics to make huge investments, which would be of no use to it if Moon Star decided to exit the market. Thus, to gain Gold Logistics's confidence, Moon Star purchased 40 percent of the stock of Gold Logistics. What does this scenario best illustrate?
a. Equity alliance
b. Backward vertical integration
c. Farward vertical integration
d. None of the above
Business
1 answer:
lorasvet [3.4K]3 years ago
8 0

Answer:

a. Equity alliance

Explanation:

Equity alliance -

It is the process , in which one of the company take the equity stake of the other company and vice versa , is referred to as equity alliance .

Due to this ,  the company becomes shareholder and stakeholder of each other .

The share acquired is the minor one , so that the company still have the power of decision making .

Hence , same case is shown in the question ,where the Moon Star Products Inc.buys the 40 % of the stock of Gold Logistics .

You might be interested in
Why are costs and benefits weighed when determining whether something gets produced
katrin2010 [14]

Answer:

Costs and benefits are weighed to determine if producing the good will be profitable.

Explanation:

Production of goods refers to the process through which raw material and resources are converted to a finished product. In most economies, production of goods are services is necessary to meet the demand for these goods. Companies and firms utilize resources like labor and materials to produce finished products. This is usually a costly activity that needs to be planned and organized for it to be successful. Since most businesses is for profit making, the production process has to be done in such a way that in the end, profits are made. Production processes requires financial strategies to be applied and assessed to ensure that the process is profitable in the long run.

An example of a financial analysis that can be used is the cost benefit analysis. The cost benefit analysis involves determination of all the resources that will be needed as input. The input is then convert into monetary terms, then summed together. The total amount of input in monetary terms is the cost, since that i the total amount needed to process the raw materials to finished goods. The future benefits are also forecasted and converted into monetary terms. The comparison of the costs versus the benefits forms what is collectively termed as the cost and benefits analysis.

When the costs outweigh the benefits, then the good should not be produced. When the costs are equal to the benefits, it means the business will break-even, so there will be no profits, it is advisable not to produce the good. Finally, when the benefits outweigh the costs, it is advisable to produce the good.

7 0
3 years ago
Small businesses that are just getting off the ground often have problems with the difference between cash coming into the busin
faust18 [17]

Answer:

d) <u>cash flow</u>

Explanation:

Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.

The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.

Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.

This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.

4 0
3 years ago
International officials and business leaders have gathered to discuss free-trade policies. Outside their summit, protesters shou
Allisa [31]
<span>Answer: D. Karl Marx's collapse of capitalism.</span>
4 0
3 years ago
Read 2 more answers
Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood i
mars1129 [50]

Answer:

C Housing prices in Country A will increase as wood imports become more expensive.

Explanation:

Since country A imports all wood from other countries, an increase in price of wood by suppliers means that they are now expensive. Country A will be paying much more money for the same amount of supply they imported before prices rose. This will lead to housing prices to increase as a way to pass over the costs to homebuyers and tenants through rising home prices and rents respectively.

6 0
3 years ago
One form ofâ __________ is when movie theaters charge one price for adults and a different price for senior citizens.
Marina86 [1]
<span>Differential pricing. Also known as discriminatory pricing or multiple pricing, it is a method of charging distinct prices for different customer segments for the same product and for the same quantity. Companies make use of differential pricing methods in order to increase profitability of an organisation.</span>
4 0
3 years ago
Other questions:
  • Sweat equity, and other methods of reducing the initial cost of getting a company off the ground without resorting to amassing o
    5·1 answer
  • The graph shows a point of equilibrium. A graph has Quantity supplied on the x-axis and price in dollars on the y-axis. A line t
    9·2 answers
  • which term describes an insured, a partner or an employee with custody of insured property outside the insured premises?
    10·2 answers
  • If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for co
    13·1 answer
  • During 2017, Fanning Manufacturing Company incurred $64,400,000 of research and development (R&amp;D) costs to create a long-lif
    9·1 answer
  • Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate opera
    11·1 answer
  • Career Situation: What Would You Do? For some years now, you’ve owned a small specialty bookshop in a college town. You sell som
    12·1 answer
  • The u.s. health care system has been historically resistant to change due to entrenched interests from
    15·1 answer
  • What is the difference between a search engine and a web browser
    9·1 answer
  • What is the fifth principle of money?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!