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telo118 [61]
3 years ago
8

A "cash cow" type of business ____ (A) generates positive cash flows over and above its internal requirements, thus providing a

corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, and/or paying dividends. (B) is a business with more current assets than current liabilities, no long-term or short-term debt, ample working capital, and plenty of cash on hand. (C) is so profitable that it has no long-term debt. generates unusually high profits and returns on equity investment.(D) is a business with such a strong competitive advantage that it generates big profits, big returns on investment, and big cash surpluses after dividends are paid.
Business
1 answer:
Rus_ich [418]3 years ago
4 0

Answer:

The correct option is: (A) generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, and/or paying dividends.

Explanation:

A cash cow type of business is the business that produces a steady return of profits, once established and requires little to no maintenance.

It refers to the business that generates positive cash flows which can be used for buying back shares on the market or investing in cash hog businesses or increasing dividends paid to the shareholders.

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Which of the following is not properly classified as property, plant, and equipment? a. Land used in ordinary business operation
Vilka [71]

Answer:

b. A truck held for resale by an automobile dealership

Explanation:

Property plant and equipment are physical or tangible assets used by an organization in the ordinary course of business. They include Land and building used in ordinary business operations, plant and machinery used in production, Land improvements, such as parking lots and fences etc. Such assets are usually depreciated as they are used and in accordance with the organization's policy. However, assets held for sale are not used by the organization in the ordinary course of business rather, the company holds them till such assets are sold.  No depreciation is computed on the assets held for sale. Hence, from the options given, a truck held for resale by an automobile dealership is the only item held for sale and does not qualify for recognition as property plant and equipment. The right answer is b.

7 0
3 years ago
Suppose you are an economist for Mattel, manufacturer of the doll Barbie, which was making an unsolicited bid to take over Hasbr
lord [1]

Answer:

a.           1. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.

b.          2. You would want to use the narrowest definition of the market, which would be dolls. This would make it more likely that the merger would violate merger guidelines.

Explanation:

a. In order to avoid anti-trust laws, it would be best that Mattel convinces the authorities that the relevant category is all toys not just a subsection. This will show that the toys made by the new company would have a lot of competition from other toy makers across the board which would reduce their chances of being a monopoly and violate merger guidelines.

b. As the bid is unsolicited, Hasbro might want to defend against it. In which case their strategy should be the exact opposite of that of Mattel and they should try to convince the regulatory boards that they would be in the narrowest of markets which would be dolls. This would mean that the merger has a strong chance of leading to a monopoly and would violate merger guidelines.

8 0
3 years ago
Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock ind
Tasya [4]

Answer:

See Below

Explanation:

We can use the future price formula here, which is:

F=Pe^{(r_f-d_y)*\frac{n}{12}}

Where

F is the theoretical future price

P is the present index standing

r_f is the risk free rate

d_y is the dividend yield

n is the number of months of the futures deliverable

Now,

given

P = 395

r_f = 0.1

d_y = 0.03

n = 3

Substituting, we get:

F=Pe^{(r_f-d_y)*\frac{n}{12}}\\F=(395)e^{(0.1-0.03)*\frac{3}{12}}\\F=(395)e^{0.0175}\\F=401.97

Actual future price is 404. The index future price is higher. So the strategy would be to sell the futures contracts. Long the shares underlying the index.

4 0
3 years ago
Rather than hiring a receptionist, a real estate agency decided to use an administrative services company to contract someone fo
Komok [63]

Answer:

outsourcing

Explanation:

Outsourcing is the process where the company wants to hire someone for the completion of the organization work in order to save the cost of the company

here is the given situation, is hiring a permanent receptionist, it is better to contact someone for work in some selected days during each week so that the work of the company could not be stopped also the firm can save the cost

Hence, the third option is correct

7 0
3 years ago
Will, the owner of Will’s Landscaping, was talking to a visitor in his office, telling her that "We are a fun-loving group that
hammer [34]

Answer: clan culture  

               

Explanation: In simple words, it refers to a corporate culture model that focuses on aligning the goals and objective of different employees together so that maximum output and  satisfaction could be derived.

  Google and zappos are two of the many examples of companies following such structure. Under this, the company makes efforts for maximum interaction among the employees so that they can exchange ideas and beliefs leading to loyalty and harmony between each other.

Hence from the above we can conclude that Will is referring to clan culture.

6 0
3 years ago
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