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3 years ago

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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Along any downward sloping straight-line demand curve: Group of answer choices both the price elasticity and slope are constant.

vitfil [10]

Answer:

the price elasticity varies, but the slope is constant

Explanation:

The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

At the midpoint of the demand curve, demand is usually unit elastic. Above the midpoint of the demand curve, demand is elastic and blow the midpoint, demand is inelastic

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

8 0

3 years ago

How does the viscosity of the magma fed to volcanoes affect nearby life and property?

saveliy_v [14]

<span>A volcano that expels highly viscous magma is a greater threat to life and property because it is more explosives and thus is more difficult or impossible to predict. When there are more explosives happen, the damage that created to nearby life and poverty will also be increased. Depending on the amount of magma that being erupted, it might take more than ten years for the soil to have good enough composition for plants to grow.</span>

8 0

3 years ago

Which has a higher flow rate? 10 customers arriving over two hours or 10 customers arriving over three hours?

Tcecarenko [31]

The one that gives a higher flow rate is: 10 customers over 2 hours. The flow rate is 5 customers per hour.

Flow rate is defined as the number of flow units that pass through the business process per unit time.

The flow unit can be money, customers, products, parts, services, etc.

Example of flow rate is number of customers serviced per hour, number of parts produced per minute, etc.

From the definition, the flow rate can be expressed as:

Flow rate = number of flow unit / time interval

There are 2 scenarios in the given problem.

Scenario 1:

Flow unit = 10 customers

Time interval = 2 hours

Hence, the flow rate in scenario 1 = 10/2 = 5 customers per hour

Scenario 2:

Flow unit = 10 customers

Time interval = 3 hours

Hence, the flow rate in scenario 2 = 10/3 = 3.33 customers per hour

By comparing the above scenarios, the one that gives higher flow rate is scenario 1, 10 customers over 2 hours.

Read more about flow rate here:

brainly.com/question/14896563

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4 0

2 years ago

What does Peter Drucker believe is needed to correct unethical behavior in business?

Valentin [98]

Answer:

The correct answer is b. Imposing stiffer punishments on business executives

Explanation:

Customer retention is the activity that sales organizations carry out in order to reduce the loss of customers. Successful customer retention begins with the first contact an organization has with a customer and continues throughout the life of the relationship. A company's ability to attract and retain new customers is not only related to its product or service, but also with the way in which it serves its current customers and the reputation it creates within and through the markets.

An important topic is simple everyday honesty. Entrepreneurs, they tell us solemnly, should not cheat, should not steal, should not lie, should not bribe. But neither should other people. No man, no woman is free from the obligation to comply with the common rules of personal conduct due to their work or employment. Nor do they cease to be human beings when they are appointed vice presidents, municipal administrators or deans of some faculty. On the other hand, there have always been people who cheat, steal, lie, bribe or are bribed. It is a matter of moral values and moral education of individuals, of the family, of the school. But there is no separate ethic for business, nor is it necessary to exist.

All that is needed is to distribute harsh punishments to those who, company executives or not, have yielded to temptations. Another recurring theme in the discussion about business ethics has nothing to do with ethics. Things such as the use of paid companions to entertain customers are not matters of ethics but of aesthetics. The real question is if I really want to see a pimp when I look in the mirror while I shave.

6 0

3 years ago

Recognizing oneself as part of a whole and working toward a

Lubov Fominskaja [6]

Answer:

555

Explanation:

4 0

3 years ago