Answer:
By having a ling term relationship with the supplier has good and bad effects on buying behavior. I say this because it is a mass struggle for up in coming business entrepreneurs to be able to build long term supplier relationships which makes a lot of businesses end up failing. On the other hand for business that are already pretty established this is a benefit because they do not have to sorry about the suppliers side of bailing out and costing the business a lot of money.
Explanation:
A consumer is most likely to engage in cognitive decision-making when: The outcome of the decision has a high degree of risk.
<h3>Cognitive decision-making </h3>
A consumer can tend to engage in cognitive decision-making when the following occur:
- When the decision making mode is most common.
- When the decision making is related to the consumer self-concept.
- When the outcome or the result of the decision made by the consumer has a high degree of risk.
Therefore a consumer is most likely to engage in cognitive decision-making when: The outcome of the decision has a high degree of risk.
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Answer:
1. Yields a balance sheet inventory amount often markedly less than its replacement cost. LIFO
2. Results in a balance sheet inventory amount approximating replacement cost. FIFO
3. Provides a tax advantage (deferral) to a corporation when costs are rising. LIFO
4. Recognizes (mulches) recent costs against net sales. LIFO
5. The preferred method when each unit of product has unique features that markedly effect cost. WEIGHTED AVERAGE
Explanation:
1. LIFO yields a balance sheet inventory amount often markedly less than its replacement cost. The reason is because the in a period of rising costs, since the last stock of goods bought are sold first, this will result in the remaining stock of goods to be of lower costs as they had been bought at an earlier date at a cheaper rate.
2. FIFO results in a balance sheet inventory amount approximating replacement cost because the first set of goods purchased are sold first; and if the assumption holds that costs are rising with time, then the balance stock of goods would have been bought at a later date at a higher cost, hence the value of the balance (ending) inventory will be almost equal to its replacement cost.
3. LIFO provides a tax advantage (deferral) to a corporation when costs are rising because it results in a lower ending inventory value since the more expensive inventory has been sold. Hence, the closing stock and Net income will be low and income tax will be low.
4. LIFO matches recent costs against net sales because the 'cost of sales' are made up of the recent purchases which are sold first
5. The preferred method when each unit of product has unique features that markedly effect cost is the WEIGHTED AVERAGE because it calculates the average period cost of all goods in stock and apportions the total to individual items.
Answer:
Passive investment
<h3>
What is Passive Investment?</h3>
- Passive investment refers to an investment strategy used by investors to increase their returns by selling and buying.
- Investors use this investment strategy to prevent some fees and cut out limited performance that may likely accompany regular trading.
Some of these benefits include:
Transparency: investors do know the assets in an index fund
Extreme low fees: monitoring is not necessary simply because no one is picking stocks
Tax efficiency: this strategy does not lead to a yearly tax of massive capital gains since passive investors only buy and hold.
Simplicity: Owning an index is very easy to implement and understand when compared to a dynamic strategy that involves regular adjustment and research.
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Answer:
Organizational structrue is crucial because it guides the functioning of an organization, from the lowest levels, to the highest levels.
An common organizational structure is divisions based: the firm is organized with a CEO at the top, and then, a financial department, a marketing deparment, and accounting department, and a productions department.
In this organization, each division has specific goals, which are set by the CEO, the Board of Directors, the shareholders, and the leaders of each divison. These specific goals are different but they must respond to a overall, coherent business strategy.
