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Gnoma [55]
4 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]4 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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Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $49
loris [4]

Answer:

(C) $464,120

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

=  (Estimated Overhead cost ÷ estimated machine hours)  

= ($492,000 ÷ 30,000 hours)

= $16.4 per hour

So, the applied overhead equals to

=  Predetermined overhead rate per hour × actual machine hours

= $16.4 per hour × 28,300 hours

= $464,120

8 0
3 years ago
A manager is hired by a start-up for her demonstrated ability to think strategically and make broad-based decisions that serve t
STatiana [176]

Answer:

Conceptual Skills

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question the manager was most likely hired for her Conceptual Skills. This is the ability that an individual may possess to analyze hypothetical situations in order to gain valuable information and develop strategies. Which allows that individual to make certain big decisions in benefit of the company.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Which statements describe a free enterprise system? Check all that apply. Citizens can own property. The government employs all
Sever21 [200]
<h2>Answer:</h2>

The following statements describes the free enterprise systems

  • Citizens can own property
  • Supply and demand drives production.
  • Consumers and producers make their own decisions.
  • Citizens can accumulate wealth.
<h2>Explanation:</h2>

Free enterprise system is the system in which market is free from government control. It is a type of capitalism. Market itself manage its price and business is easy to do. All the citizens are allowed to own property, consumers and producers can make their own decisions and every person is allowed to accumulate wealth if they want.

7 0
3 years ago
Read 2 more answers
Which of the following is a correct statement regarding the shipment of goods?
Nutka1998 [239]

Answer:

The answer is A) The shipping document must be in paper form.

Explanation:

When you are shipping goods (specially if you´re exporting or importing goods) you need a lot of paperwork done. The carrier, customs official, the banks involved, insurance companies, etc., all require several types of documents. The most important ones are:

  • Proforma invoice
  • Bill of Lading
  • Shipper´s Letter of Instructions (SLI)
  • Packing List
  • Commercial Invoice
  • Customs documents
  • Certificates of Origin
  • Dangerous Goods forms
  • Bank Draft

And all those documents need to be in paper form and some require several copies.

6 0
4 years ago
Ginger, Inc., has declared a $5.40 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
lesantik [10]

Answer: $89.68

Explanation:

The Ex-dividend measures how much a stock price drops as a result of the disbursement of dividends. It is calculated by subtracting the dividend from the current stock price.

In the above question the IRS require that taxes be withheld at the time that the dividend is paid.

This means that taxes have to be accounted for first before ex - dividend is calculated.

After tax dividend = 5.40 * ( 1 - 0.2)

After tax dividend = $4.32

Solving for Ex-dividend gives,

= 94.00 - 4.32

= $89.68

The ex-dividend price will be $89.68

4 0
3 years ago
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