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grin007 [14]
3 years ago
9

Amazon expanded its single-product business by leveraging spare capacity into cloud computing and by offering its Kindle line of

tablet computers. This is an example of____________.
A. unrelated diversification.
B. related-linked diversification.
C. taper integration.
D. backward vertical integration.
Business
1 answer:
RoseWind [281]3 years ago
6 0

Answer:

B) related-linked diversification.

Explanation:

A related linked diversification strategy refers to expanding a company's product lines with products or services that are similar to the ones that it currently offers.

In this case, Amazon first sold books and selling a e-book reader follows a similar path. Since Amazon had spare cloud computing capacity, it decided to "lease it" to other businesses and is currently Amazon's star service that generates most of its cash.

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2 years ago
Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a NEGATIVE adjustment of $5000 rel
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Answer:

It implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

Note: The correct answer is as stated above it is not included in the option. Kindly confirm the options again from your teacher.

Explanation:

Accounts payable refers to the amount of money a firm is owing its suppliers.

Account payable is one of the component of the current liabilities in the balance sheet, and non-cash current liability item that is adjusted for in the cash flow statement to arrive at net cash from operating activities when an indirect method is being used.

Since accounts payable is the amount of money a firm is owing its suppliers, a negative  a NEGATIVE adjustment to its implies that company has paid its supplier the negative amount in the accounting period.

Therefore, a NEGATIVE adjustment of $5000 related to Accounts Payable implies that the firm paid $5,000 to its supplier this accounting period (e.g. year) out of the amount the firm is owing the supplier.

7 0
3 years ago
The Fun Tyme Toy Company discovers that one of its products can easily break, exposing children to potential injury from the sha
Novosadov [1.4K]

Answer:

A) 24 hours

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The Consumer Product Safety Act (CPSA) established the Consumer Product Safety Commission (CPSC) which is the government entity in charge of setting product safety standards, requesting recalls and banning products if necessary.

In this case, if a toy is potentially dangerous then the company must notify the CPSC within one business day and start the recall procedure immediately.

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8 0
2 years ago
The difference between zero profit and zero economic profit is that:
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Answer:

The correct answer is letter "A": economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero profit.

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Normal profit is an economic term that means zero economic profits. To an economist, this is normal since total revenue equals total cost which includes both explicit and implicit costs. It differs from the accounting profit or zero profits since the latter does not take into consideration implicit cost.

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