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kramer
3 years ago
5

Even though it is not actively involved in global marketing, Hennessey Enterprises, a U.S.-based business, agreed to sell two th

ousand of its stress-reducing balls to a distribution company in Norway. This would be an example of contract manufacturing. True or false?
Business
1 answer:
Harlamova29_29 [7]3 years ago
6 0

Answer:

This would be an example of contract manufacturing.

True

Explanation:

Contract manufacturing can be defined as an international agreement between two companies in different countries to manufacture a product for the other company. It involves the arrangement by one company to receive manufactured products from another company. Contract manufacturing can also be known as international outsourcing or international subcontracting. In the contract, the company that needs the products usually stipulates the specifications of the product. In some cases, depending on the contract requirements, the company can provide the raw materials to be utilized in manufacturing.

This type of contract also specifies the expected quality of the products, quantity of products and the date of delivery of the products. The contract also provides for the testing of the products to ascertain that the quality meets the standards of the contract. Furthermore, the contract also provides for compensation in case of breach of contract.

Contract manufacturing is usually considered when the cost of production in a foreign country is much lower than in the country that is outsourcing the production.

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Lack of communication can cause minunderstanding and confusion with both parties

Explanation:

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Assume the following: Pre-tax return = 14.5% Tax rate = 25% Inflation rate = 4% What is your real return?
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Answer:

6.875%

Explanation:

In order to compute the real return, first, we have to determine the after-tax return which is shown below:

After-tax return = Pre-tax return - tax rate of Pre-tax return

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3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
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3 years ago
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3 years ago
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The valid reason for selling the stock now is that the -Courtney is concerned that the value of the stock will decline in the near future.

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