In the context of business management, the purpose of budgeting includes the following three aspects:
•A forecast of income and expenditure (and thereby profitability)
•A tool for decision making
•A means to monitor business performance
If Austin can produce potato chips at a lower opportunity cost than William, then Austin has a comparative advantage in the production of potato chips.
Comparative advantage refers to a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producers or businesses.
In production a lower opportunity cost creates a comparative advantage. So here in this situation a comparative advantage in one good implies a comparative disadvantage in another.
Hence, comparative advantage is the ability of a producer to produce a good or service for a lower opportunity cost than its competitor.
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Answer: Option D is correct.
Explanation:
The value of an investment is the present value of its expected future cashflow.
In economics, an investment is said to be goods purchased that are not consumed presently, but are kept for the future to create wealth.
In the area of finance, an investment is a financial asset acqured with the motive that the asset will yield income in the future or would sometime later be sold at a higher price for a gain (profit).
Answer:
Both A) and B)
Explanation:
Samoa is a very small country that consists of two islands, and its population is less than 200 thousand. New Zealand and Australia are therefore, massive countries compared to Samoa, with very different cultures.
The Samoan marketing director should research the geography of New Zealand and Australia because it is very different from Samoan geography. He should also complete a demographic analysis (income bracket, gender, and age fall under this category) in order to profile possible customers.
Finally, cultural aspects and rituals such as those described in point B should also be explored in order to know what to expect from local clients, providers, and business partners, and also, in order to know how to advertise the services. (culture is a crucial factor in determining the type of advertising a company employs).
Answer:
Franchising
Explanation:
In Franchising, a company who already has a successfully established brand give other people with the ability to open new branch by using that brand.
Example for this would be McDonald. McDonald operate under a franchising system, in which a person who have enough capital to provide building can pay a certain amount money to McDonald in exchange for permission to use its brand.
In most franchising system, the Franchiser usually impose a strict regulation regarding the format of the business. They do this in order to maintain the reputation of the brand.
