Answer:
Explanation:
Businesses can be affected by various environmental facors as political, economic, social and technological facors (PEST). All of these factors influence the decision making within the organization.
Let's briefly describe each of the factors:
1. Political factors: In some countries there are subsidiaries and tax exemptions for running a particular businesses. For example, tax exemptions for those doing green business or producing electric cars. In order to adress such risks, business people should investigate about legislation and political environment of countries.
2. Economic factors: Businesses are affected by economic well being of the market where it is based. For example, market largely differs in European ccountries and Central Asian countries. Most of the countries in Central Asia are developing countries, whereas European countries are developed and have economic stability. To handle such risks, businessman should research the potential markets on the issues of inflation rate, average income of people and etc.
3. Social factors: How society views the markets and what it demands. Some support green initiatives and want zero waist products and etc.
4. Technological environment: In case of electro cars, if there are no energy for charging them that could be the potential issue. Or if market is not really technologically advanced, business will need to educate the market about their innovational products and etc.
In order to manage such concerns there should be particular research and investigations held and of course financial requirements are important and should be met for budgeting purposes.
Answer:
b. Materials 190,000 Accounts Payable 190,000
Explanation:
Materials may either be purchased on credit or by cash, When materials are purchased on credit, such materials are said to have been purchased on accounts.
The entries for cash purchases are ;
Debit Supplies/Inventory account
Credit Cash account
However, when the purchase is done on account, the credit entry goes to the accounts payable and not cash.
Answer:
It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy. This is because Plain, generated more contribution per hour than Fancy.
Explanation:
We have to calculate the Contribution Margin per machine hours
This means check which product makes a better use of the scarse resourse
It will be better to produce all the units of Plain we can sell, then use any remaining machine hours to produce Fancy
Answer:
The correct answer is D
Explanation:
Product differentiation is the term which is described as the strategy of marketing which focuses on showing off the differences among the product or the competition and the business.
So, the firm or business who spend the highest percentage of the revenue on advertising the product are the firms which sell the highly differentiated goods.
