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Soloha48 [4]
3 years ago
15

Under what circumstances might a long-term strategic alliance with a key supplier enable a company to capture most of the benefi

ts associated with vertical integration, without bearing the associated risks and costs?
Business
1 answer:
denpristay [2]3 years ago
7 0

Answer:

It would be better to enter a new business area by acquisition when a company is considering implementing horizontal integration or when they are pursuing vertical integration and the company is lacking the distinctive competencies to establish a quick presence and reputation. Acquisition allows a company to purchase quicker than it takes to establish its own company that is similar. Also, acquisitions are less risky because there is less commercial uncertainty and the company is able re-search the turn get are interested and get have unpublished reputation, lastly, they are attractive because there are high barriers to entry

Explanation:

You might be interested in
A company's common stock shares are expected to bring a 13 % return to their investors in case of "recession" state of the econo
Ludmilka [50]

Answer:

The expected rate of return is 8.65%

Explanation:

The expected return on a stock can be calculated by multiplying the return in each scenario by the probability of that scenario. This will provide the expected value of the return based on all these scenarios. Thus, the rate of return is,

Rate of return = rA * pA + rB * pB + rC * pC

Where,

  • r represents the return in each scenario
  • p represents the probability of each scenario

The probability of normal state is = 1 - 0.45 - 0.05  =  0.5

Rate of return = 0.13 * 0.45 + 0.06 * 0.5  + (-0.04) * 0.05

Rate of return = 0.0865 or 8.65%

3 0
3 years ago
Suppose the price of pepperpepper increases by 1010 percent​ and, as a​ result, the quantity of saltsalt demanded​ (holding the
Mazyrski [523]
<span>The cross-price elasticity of demand between salt and pepper is -0.50 In this example salt and pepper are Complements. Instead, suppose salt and pepper were substitutes. If so, the the cross-price elasticity of demand between salt and peeper would be positive.</span>
6 0
3 years ago
The government sets an allowable amount of pollution and lets companies buy and sell the right to release this pollution in a co
Margaret [11]

Answer:

D. tradable permits

Explanation:

Tradable permits also known as emissions allowance is an attempt at regulating pollution through the market system. tradeable permit gives right to the bearer of such permit to emit pollution up to a limited amount and if such permit is partially used or for one reason or the other, it is unused, it can be traded or negotiated to a willing buyer.

7 0
3 years ago
Hampton Company reports the following information for its recent calendar year. Income Statement Data Selected Year-End Balance
Alina [70]

Answer:

See below

Explanation:

Statement of cash flow from operating activities using the indirect method.

Net income

$14,000

Adjustment for non cash items:

Depreciation expense

$5,000

Adjustments for changes in working capital:

Increase in accounts receivables

($8,000)

Decrease in inventory

$4,000

Increase in salaries payable

$1,000

Net cash from operating activities

$16,000

7 0
2 years ago
Suppose that an increase in the price of melons from $0.50 to $1.50 per pound increases the quantity of melons that melon farmer
zaharov [31]

Answer: elastic

Explanation:

The price elasticity of supply will be:

The percentage change in price will be:

= (1.50 - 0.50)/0.50 x 100

= 1.00/0.50 × 100

= 200

The percentage change in quantity will be:

= (4 -2)/2 x 100

= 2/2 × 100

= 100

Elasticity = % change in quantity/% Change in Price = 200/100 = 2

Since elasticity = 2, this indicates supply is elastic as it's greater than 1.

4 0
2 years ago
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