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NemiM [27]
3 years ago
7

Which of the following would NOT generally be a motive for a firm to hold inventories? to hedge against inflation to decouple va

rious parts of the production process to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand to minimize reordering costs
Business
1 answer:
34kurt3 years ago
8 0

Answer:

The answer is to minimize the reodering cost

Explanation:

We have three motives for holding inventory

1. Transaction motives of holding inventory This is to enable day to day transaction running of inventories.

2. Precautionary motives of holding inventory: Holding inventory to guard against unforeseen circumstances or to meet emergencies. For example, unexpected increase in demand.

3. Speculative motives of holding inventory. This is the holding of inventory in order to take advantage of any potential Investments. For example, to hedge against risk, take advantage of discounts.

All the options EXCEPT 'to minimize reodering cost' option are the reasons holding inventories.

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Porsche has enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price. this ____
alexgriva [62]

This "lessens" rivalry, since buyers become "less" price-sensitive.

Price sensitivity is how much the cost of an item influences customers' buying practices. In financial matters, price sensitivity is usually estimated utilizing the price elasticity of demand. For instance, a few buyers are not willing to pay even a couple of additional pennies per gallon for gas, particularly if a lower-valued station is adjacent.

7 0
3 years ago
Read 2 more answers
22. At the end of each year for the next 18 years, you receive cash flows of $3700. The initial investment is $25,200 today. Wha
IrinaK [193]

Answer:

29.37%

Explanation:

Rate of return = Average annual income/Average initial investment

Average annual income = $3,700

Average initial investment = (I+s)/2

Average initial investment = (25,200+0)/2

Average initial investment = $12,600

Rate of return = $3,700/$12,600

Rate of return = 0.2936508

Rate of return = 29.37%

6 0
3 years ago
When __________ funds are set aside (idling the excess) and government does not spend the money nor apply it to past debt, this
finlep [7]
When surplus <span>funds are set aside (idling the excess) and the government does not spend the money nor apply it to past debt, this action does not cause expansion or contraction.
That statement is true. Expansion or contraction happens when the amount of Government budget is accumulated or decreased as the result of last year's operations</span>
7 0
3 years ago
Brian is responsible for the promotions and public relations of his firm, which produces rubber tires. a recent development in t
brilliants [131]

Answer:

Not newsworthy.

Explanation:

The news is not worth publishing because this is not something that excites the public or catches their attention.

When you are in public relations and you need to advertise and promote a company and it's products, the idea is to capture the imagination of your target audience.

In this example, the news proposal will rightly be rejected because it does not seem to serve any of these purposes.

8 0
3 years ago
There are only four legal structures to form and operate a business.TrueFalse
coldgirl [10]

Answer:

The above statement is false.

Explanation:

The most common legal structure of business are as follows:

Sole proprietor : It is a form of business in which a business is fully controlled by only one person. He takes all the decision himself . He has unlimited liability. His personal assets are used by the creditors to recover their money

Partnership: It is a form of business in which minimum 2 person come together to form a partnership firm. They share profit and loss as agreed between them. They have a partnership deed . Every partner have unlimited liability .

Limited liability Partnership : This form is recently introduced. This form come under the limited liability 2008. It has separate legal entity.

Corporation: A corporation has a independent legal entity, separate from its owners and has different tax calculation than other structure. The owner of the corporation has limited liability upto their share in corporation

S-Corporation: This business structure is more simple than corporation. It is more beneficial for small owners and also have some tax benefits. S Corporation can also cash accounting system rather than accural method of accounting.  

Thus, the statement is false that the legal structure of business is only four.

6 0
3 years ago
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