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docker41 [41]
3 years ago
11

How can a firm pursuing a diversification strategy enhance its overall corporate performance by leveraging financial economies?

Business
1 answer:
lilavasa [31]3 years ago
4 0

Available options are:

A. by using internal capital markets as a source of value creation

B. by adding more unrelated businesses into its corporate portfolio

C. by increasing its coordination and influence costs

D. by investing in businesses under the question mark quadrant of the BCG matrix

Answer:

Option A. By using internal capital markets as a source of value creation

Explanation:

The internal capital market is a mechanism of allocation of funds of an organization to its various projects that meets its desired return criteria and is in-accordance with their mission statement.

Option A is correct because the The reason is that if the organization is investing in the projects that will generate greater value by using its funds then it will increase the corporate performance.

Option B is incorrect because investing in unrelated business decreases the risk level associated with the corporate operations and is serious trouble for the company if it doesn't have any prior experience of the unrelated business.

Option C is incorrect because cordination might not bring value to corporations as there are many examples of mismanagement and collapse of corporations in the past.

Option D is also incorrect because almost one third of new businesses collapse every year. The investment in question mark is thus a very risky option and can effect the company by significant losses.

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Jane works in the maintenance department, which supports the production department and the research department. Jane's wages are
valina [46]
<h2>Direct to the maintenance department</h2>

Explanation:

Jane here works only in the Maintenance department. The work that he does supports both Production as well as Research. We can calculate the expenses, only by associating the department of the employee.

So, the wages should be directly associated to the maintenance department only.

We cannot add one cost to multiple department and it is not the right approach of accounting system. So the below becomes invalid.

<em>Indirect to the production department Direct to the research department Direct to the production department Indirect to the research department</em>

3 0
3 years ago
Net loss can be thought of as a __________ to the Capital account.<br><br> Debit<br> Credit
xz_007 [3.2K]

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a <u>Credit </u>to the Capital account.

6 0
2 years ago
James is the new manager of operations at Springfield Motors. To his dismay, he finds the employees coming in late to work, taki
Lena [83]

Answer: Option B                  

                               

Explanation: In simple words, positive reinforcement means motivating someone to perform a job more efficiently and frequently by offering them some reward for doing so. While punishment refers to penalizing someone for any offense.

In the given case, James has been offering the incentives to his employees but have also made a clause to withhold them in case of unprofessional behavior.

Thus, from the above we can conclude that the correct option is B .

4 0
2 years ago
Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10
Zolol [24]

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

Inflation is defined as increases in price per unit price.

It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.

One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

6 0
3 years ago
On June 10, Blossom Company purchased $7,100 of merchandise from Sunland Company, terms 4/10, n/30. Blossom Company pays the fre
Marysya12 [62]

Answer:

June 10

Dr Inventory $7,100

Cr Accounts payable $7,100

June 11

Dr Inventory $350

Cr Cash $350

June 12

Dr Accounts payable $600

Cr Inventory $600

June 19

Dr Account payable $6,500

Cr Cash $6,240

Cr Inventory $260

Explanation:

Preparation of a separate journal entries for each transaction on the books of Blossom Company.

Books of Blossom Company

June 10

Dr Inventory $7,100

Cr Accounts payable $7,100

June 11

Dr Inventory $350

Cr Cash $350

June 12

Dr Accounts payable $600

Cr Inventory $600

June 19

Dr Account payable $6,500

($7,100-$600)

Cr Cash $6,240

($6,500-$260)

Cr Inventory $260

(4%*$6,500)

8 0
3 years ago
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