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Gnoma [55]
3 years ago
6

A firm's diversification strategy is most likely to add value if:________. a. There exist economies of scope between diversified

business units. b. The firm has a comprehensive business portfolio in different industries. c. The diversification strategy enables the firm to enter several unrelated businesses. d. It enters unfamiliar market through aggressive acquisitions.
Business
1 answer:
Katyanochek1 [597]3 years ago
4 0

Answer:

Option A. There exist economies of scope between diversified business units

Explanation:

The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.

Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.

Option B is not preferable option as the option of investing in different businesses is choosen in the option A.

Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.

<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.

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Which of the following tools is an example of monetary policy?
loris [4]

Answer:

Explanation:

B C and D have become tools that have been tried.

Deficit spending is a budget/government policy. Its use should be very limited.

Same with Increased Government Spending. FDR was the master at controlled government spending.

Reducing income taxes is another government policy.

So only A is an example of monetary policy. This is a regulation imposed on the Banks by the Federal Reserve.

4 0
3 years ago
Read 2 more answers
Now that you have learned about the different types of decision-making styles, write a short essay about the kind of decision ma
Lunna [17]

Answer:

just copy and paste something random in there, they only grade it for completing it they don't go back and check

Explanation:

I take that class in edmentum

5 0
3 years ago
The income statements for Federer Sports Apparel for 2019 and 2018 are presented below Required Prepare a horizontal analysis fo
nignag [31]

Answer:

FEDERER SPORTS APPAREL  

Income Statement  For the Years Ended December 31

                                                   Years                        Increase /(Decrease)

                                         2019            2018                    Amount      %

Net sales                      18,800,000    15,500,000      3,300,000    21.29%  

Cost of goods sold      13,200,000     7,000,000      6,200,000    88.57%

Gross profit                   5,600,000     8,500,000     (2,900,000)   -34.12%

Operating expenses     1,600,000      1,200,000         400,000     33.33%

Depreciation expense  1,000,000      1,000,000       0                   0

Inventory write-down     200,000       0                      200,000      100%

Loss (litigation)             1,500,000         300,000       1,200,000    400%

Net Income                $1,300,000    $6,000,000      (4,700,000)     78.33%

Explanation:

a) Federer Sports Apparel can use horizontal analysis as a technique for analyzing the financial statement changes over a period of time.  It is a useful tool for Federer to evaluate its trend situations, using the financial statements of two years with the earlier year serving as the base year (or independent variable) while the latter year is the dependent variable.

6 0
3 years ago
Your total sales during a six-hour shift were $1,200. Your individual performance in terms of sales per hour would be:
Anit [1.1K]

Answer:

b. $200

Explanation:

The computation of the individual performance is shown below:

= Total sales ÷ number of shift hours

= $1,200 ÷ 6 hours

= $200

It means that per hour, the individual performance is $200

We simply divide the total sales by the number of shift hours, so that the sales per hour can determined

It shows a relationship between the total sales and the number of shift hours

4 0
3 years ago
Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp
german

Traditional income statement : Net operating income $47,000

Contribution income statement : Net operating income  $25,000

1.

Traditional Income Statement

Sales  (11,000 x $16)                       $176,000

Cost of goods sold

(9,000 + 87,000 - 25,000)            ($71,000)

Gross Margin                                  105,000

Selling and administrative expenses:  

Selling expense

(11,000 x 1) + 22,000                      $33,000

Administrative expense

(11,000 x 1) + 14,000                       $25000

Net operating income                  $47,000

2.

Contribution format income statement

Sales                                                $176,000

Variable expenses:  

Cost of goods sold        71,000  

Selling expense              11,000  

Administrative expense  11,000      ($93,000)

Contribution Margin                         $83,000

Fixed expenses:  

Selling expense                33,000  

Administrative expense   25,000     (58,000)

Net operating income                     $25,000

Learn more about preparation of income statement here : brainly.com/question/24498019

3 0
2 years ago
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