Answer:
a. Guarantee to repay the debt of another firm that is solvent and profitable (the interest rate of the debt was not reduced due to the guarantee).
Explanation:
According to the rules of full disclosure, the company is to disclose facts about all transactions or contracts that impact and business. For example of a business is most likely to go out of business because of an unfavourable court ruling, this information must be disclosed in the companie's financial statement. If however the activity will not impact the business there is no need to disclose.
In this instance the guarantee need not be disclosed since the guarantee is to repay debt of a company that is solvent and profitable. The chances that the guarantee will become enforceable is very slim.
Also the interest rate of the debt was not reduced due to the guarantee. So there is no financial impact on the business.
Answer: The answers are "dynamic", "pace of change and complex", "number of factors that are changing", "scarce", "high" and "difficult".
Explanation: At Celgene, the environment is <u>dynamic</u> because of the<u> pace of change and complex</u> and because of the <u>number of factors that are changing</u>. Resources are <u>scarce</u>. The managers at Celgene are facing conditions of <u>high</u> uncertainty. This means that it will be <u>difficult</u> for them to make strategic decisions about the types of products the company will offer in the future.
Answer:
Effective capacity= 500 units
Explanation:
Effective capacity is defined as the maximum amount of product a manufacturing process can complete in a given period. Considering constraints such as delays, quality problems, and material handling.
Effective capacity is dependent on the design of the system. Design capacity is defined as the theoretical capacity of a system based on its design.
Effective capacity is calculated by dividing the actual capacity by efficiency.
Effective capacity= Actual Capacity/ Efficiency
Effective capacity= 400/0.8
Effective capacity= 500 units
Answer:
at any level of units sold, net income will be higher if more higher contribution margin units are sold than lower contribution margin units.
Explanation:
When products with high margins are sold, profit is made and net income becomes higher. For lower contribution margin units sold to make an impact on the net income, many more units must be sold. However, in cases where units with higher contribution margin are sold, net income is positively affected.
Answer:
Available options are:
A) Substantial capital investment and access to capital
B) Strong marketing capability
C) Reputation for high ethical standards.
D) Effective product engineering and innovative design
Answer: A) Substantial capital investment and access to capital
Explanation:
In business strategy, COST LEADERSHIP is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve). ... If so, that company would have a higher than average profitability.
A cost leadership strategy is a company’s plan to become a cost leader in its category or market.
Substantial capital investment and access to capital is a very reliable resources for implementing a cost leadership strategy.
