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3 years ago

How do horizontally organized companies differ from traditionally organized companies

1 answer:

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Horizontally organised companies do not have a strict hierarchy of posts with increasing importance and allow more freedom to the employees.

Explanation:

Horizontally organised companies function very differently from traditional companies as the traditional structure is a pyramidal vertical structure.

In this structure people at the top are few and are at higher positions and issue orders which are distributed by managers to employees.

In the horizontal structure the managers are taken out of play and even the employees make important decisions for the company. This allows for greater morale and freedom but can only work for small and medium sized businesses in certain niches.

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A lawnmower manufacturer estimates that the probability of a fatal accident caused by the design of its product is 1/10,000 and

Wewaii [24]

Answer:

790,000, i.e. $79 x 10,000= 790,000 . Yes, the manufacturer should change the design. 666,667 (when it goes from 1/10,000 to 1/15,000). It is 500,000 (when it goes from 1/10,000 but 1/20,000) . No, the benevolent social planner would not agree with the manufacturer's decision.

Explanation:

In the estimates provided by the manufacturer, the total cost of the design is equivalent to $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.

3 0

3 years ago

The firm has just declared a dividend of $1.09 per share for the current fiscal year. The firm has earnings per share of $2.11,

Anna007 [38]

Answer: E) price-earnings ratio will be 14.26 ex-dividend.

Explanation:

Stock prices generally decrease in price by the price of the dividend on ex-dividend date.

This means that this stock will reduce to:

= 31.17 - 1.09

= $30.08

Price to Earnings ratio = Stock price/ Earnings per share

= 30.08/2.11

= $14.26

Option E is correct.

4 0

4 years ago

Hi-Tech, Inc., reports net income of $65.0 million. Included in that number are depreciation expense of $5.5 million and a loss

Greeley [361]

Answer:

Net Cash Flows from operating activities is $68.5 million.

Explanation:

The indirect Method would be used here because all we will find the cash expenses and revenues that were converted into within the year and are reported in the income statement by calculating the increase and decrease in the current assets and current liabilities. Here we will also eliminate the non cash expense effects by adding them back.

The net cash flows from operating activities can be calculated using the following method:

Millions

1. Net Income 65

Add Non Cash Deductions

2. Depreciation 5.5

3. Loss on sale of Equipment 1.5

Add / (Less) the increase or 

decrease in current Assets or 

liabilities

4. Increase in Trade Receivables (2.5)

5. Increase in Trade Payables 3.5

6. Increase in inventory (4.5)

Net Cash Flows from operating activities $68.5

4 0

3 years ago

If an organizational capability or resource is valuable and unique, but it is easy to imitate: A. It cannot be a source of compe

MaRussiya [10]

Answer:

<h2>In this case,the answer would be option D. or It can be a source of competitive advantage for a period of time.</h2>

Explanation:

In Production Economics,any organizational input in the production process can provide competitive advantage to any firm or company for a sustainable period of time only if it provides commercial or economic value to the firm or company,it is unique and it cannot be completely imitable or substituted through other equivalent resource/s by other market competitors.
Therefore,if any organization resource or input is easily imitated then it cannot ensure long term or sustainable competitive advantage for any firm or company in the market.
However,it can provide some temporary market advantage or competitive edge to any particular firm or company until the time it is fully imitated and implemented by its competitors or rivals.

3 0

3 years ago

Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The follo

bija089 [108]

Answer:

Poinsettias records a loss of $118,125

Fruit Trees records a profit of $92,325

The company therefore records an overall $25,800 loss

NB: See the workings below see the assumption mad to allocate common expenses since none is given in the question.

Explanation:

Variable costing income statement is a type of income statement that records variable cost separately first to determine the contribution margin and thereafter record the fixed cost which is further split into direct fixed expenses and common expenses.

The segmented income statement for Gorman Nurseries for the coming year can therefore be presented as follows:

Gorman Nurseries Inc.

Segmented Income Statement

For the coming year

Particulars Poinsettias ($) Fruit Trees ($) Total ($)

Sales 970,000 3,100,000 4,070,000

Variable COGS (460,000) (1,630,000) (2,090,000)

Variable selling exp. (w1.) (38,800) (124,000) (162,800)

Contribution margin 471,200 1,346,000 1,817,200

Direct fixed overhead (160,000) (200,000) (360,000)

Direct fixed S $ Admn exp. (146,000) (87,000) (233,000)

Segment margin 165,200 1,059,000 1,224,200

Common fixed overh. (w2a) (176,077) (623,923) (800,000)

Common S $ Admn ex (w2b) (107,248) (342,752) (450,000)

Segment Net Income (loss)  (118,125)   92,325   (25,800) 

Workings:

w1. Variable selling expenses = Sales * Commission percentage

Poinsettias = $970,000 * 4% = $38,8000

Fruit Trees = $3,100,000 * 4% = $124,000

w2. Allocation of common expenses using the following assuptions:

a) Use cost of goods sold (COGS) to allocate Common fixed overhead:

Poinsettias = (460,000 / 2,090,000) * $800,000 = $176,077

Fruit Trees = (1,630,000 / 2,090,000) * $800,000 = $623,923

b) Use common selling and administrative expense using Sales:

Poinsettias = (970,000 / 4,070,000) * $450,000 = $176,077

Fruit Trees = (3,100,000 / 4,070,000) * $450,000 = $623,923

4 0

3 years ago