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.
False
A corporation wouldn't have perpetual, or everlasting, life if the death of one of its shareholder could end it. Perpetual means never ending.
I believe it's the marketing mix?
Answer:
EOQ = 72 units
Explanation:
Annual demand D = 1,286 units
Ordering cost S = $47
Holding percentage I = 35%
So, 0 - 199 units, the unit cost is $66
EOQ = 
EOQ = 
EOQ = 
EOQ = 72.33998613
EOQ = 72 units
Answer:
"B"
Explanation:
A profitable customer is a person , household or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting , selling and servicing that customer.
They are necessary for the existence of a business into the foreseeable future as profit is key to the survival of all businesses
In identifying a profitable customer ,one needs to
- define who is customers are
- products bought by them
- identify the most profitable products
- Services employed by them
- Related cost to managing and retaining them