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3 years ago

There are advantages to doing business with just one vendor, and you should always stick to just one if you can

Business

1 answer:

Rama09 [41]3 years ago

5 0

Answer:

False.

The advantages from 1 vendor to 1 business relationship is that the trust implicit in the contract is stronger as both parties need each other to gain. Logistically there are obvious advantages to the only use of 1 vendor, but the disadvantage is the power that is gained by the vendor in front of the business.

This means that if a company only uses one vendor, but this vendor provides to several companies. Then, if the vendor decides to charge a higher price for the goods or services the company will have to accept as it does not have another vendor to get the goods or services from.

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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra

melomori [17]

Answer:

0.6

Explanation:

Variable Expense Ratio is calculated by taking Variable Expense and dividing it by Sales. This ratio indicates how much of the variable expense is incurred by company for each $1 Sales.

So, variable expense ratio is .6 or 60% (33,000 / 55,000).

Such questions also require the calculation of Contribution Margin Ratio which is calculated by taking Contribution Margin and Dividing it by Sales. This ratio tells us how much the company generates after covering variables expenses when the sales are $1.

So, Contribution Margin Ratio is .4 or 40% (22,000 / 55,000).

6 0

3 years ago

A company uses proprietary computer software to offer services that other companies have not been able to emulate. These service

kirill115 [55]

Answer:

Distinctive competence

Explanation:

Distinctive ability relates to a certain market trait which it does differently than its rivals. Since the company can do more than most other companies, it has a competitive edge over all other companies.

An organization's competitors cannot imitate this competence (at least in the short term), allowing an organization to gain an advantage over others. An organization must protect its distinctive competence to retain its competitive edge.

Thus, from the above we can conclude that the given case illustrates distinctive competence.

3 0

3 years ago

Which description applies to the middle class in American society?

Lady_Fox [76]

Answer:

(C).They tend to live comfortably as long as they have jobs

6 0

3 years ago

Read 2 more answers

Account policies set in GPOs linked to an OU containing computer accounts affect only local user accounts defined in the compute

podryga [215]

The answer to this question is A

5 0

2 years ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

koban [17]

Answer:

Risk-free rate (Rf) = 8%

Return on market portfolio (Rm) = 15%

Beta (β) = 1.2

Ke = Rf + β(Rm - Rf)

Ke = 8 + 1.2(15 - 8)

Ke = 8 + 1.2(7)

Ke = 8 + 8.4

Ke = 16.40%

Earnings per share (EPS) = $10

Current dividend paid (Do) = 40% x $10 = $4

Retention rate (b) = &6/$10 x 100 = 60% = 0.6

ROE (r) = 20% = 0.2

Growth rate (g) = b x r

= 0.6 x 0.2

= 0.12 = 12%

Current market price (Po)

= Do(1 + g)

Ke - g

= $4(1 + 0.12)

0.1640 - 0.12

= $4(1.12)

0.044

= $101.82

Explanation:

First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).

Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.

7 0

3 years ago