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Hunter-Best [27]
4 years ago
6

Phoenix Guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and

production of components used in its signature line of guitars. Although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickups for sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. Which of the following approaches is likely to produce superior results?
A) Invest in vertical integration despite the cost of producing pickups.
B) Abandon the idea of vertical integration entirely.
C) Pursue taper integration.
D) Introduce a budget line of guitars to diversify the firm's offeri
Business
1 answer:
jok3333 [9.3K]4 years ago
5 0

Answer:

Option A

Explanation:

In simple words, Regardless of the expense of making guitars, the technique reduces the total cost of manufacturing a instrument. Phoenix would be in the production business of instruments, not pickups.

The target of this technique is therefore the entire guitar, not really the pickups. The smaller the process of manufacturing their instruments, the better manoeuvrability they have on the market. When they have reduced costs, they may change rates downwards in order to capture further market penetration.

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Three important forms of financing long-term (capital) expenditures are:
Sergeeva-Olga [200]

Answer:

O d. term loans, mortgage loans, and bonds

Explanation:

Term loans are credit facilities where the lender and borrower agree on the loan amount and a repayment schedule. It involves a large sum of money to be repaid over a long period making it ideal for acquiring capital.

Mortgage loans are long term debts used to finance the purchase of properties. It is ideal for expensive capital due to the lengthy time it takes to repay.

Bonds are long-term debt securities issued by corporations to finance long term projects.

4 0
3 years ago
Analyst 1 suggested that the demand curve for newspapers in Baltimore might have shifted to the right because people were becomi
Anuta_ua [19.1K]

Answer:

(D) A and B only

Explanation:

Two other plausible stories that could shift the demand for newspapers to the rights are:

A: If income levels are rising (and given that newspaper is a normal good). Due to this reason, we would expect more people in Baltimore who before now, were not buying newspaper due to their low income, to begin to buy, thus shifting the demand curve to the right.

B: fewer substitute. When the populace have no viable alternative to get news daily, more people are likely to buy newspaper, thus shifting the demand curve to the right.

Option C is incorrect as a shrinking population will translate to reduced demand resulting in a shift of the demand curve to the left.

3 0
4 years ago
List at least three things you would consider when choosing a bank and account type.
ELEN [110]
Free Checking. APR (Annual Percentage Rate) on Savings and of the bank is a Credit Union or a plain ole bank.
5 0
3 years ago
Read 2 more answers
After a retiring from a successful business​ career, you would like to make a donation to your university. This donation will go
ICE Princess25 [194]

Answer:

Part A) D. $137,500

Part B) C. $140,250

Explanation:

Part A) The computation of annual salary payment is shown below:-

Annual salary = Donation made × Interest rate

= $2,500,000 × 5.5%

= $137,500

So, for computing the annual salary we simply multiply the donation made with interest rate.

Part B) The computation of starting salary is shown below:-

Starting salary = Annual salary + Increased annual salary

= $137,500 + 2%

= $140,250

Therefore for computing the starting salary we simply added the annual salary with increased annual salary.

3 0
4 years ago
The process of recording a transaction in the journal is called a.journalizing b.posting c.ledgerizing d.summarizing
8090 [49]

Answer: Journalizing

Explanation:

Journalizing is the process of entering business transactions in accounting journals. The key records to be taken in journalizing is usually the: date of transaction, brief description of transaction, the record of amount credited/debited.

4 0
3 years ago
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