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3 years ago

If a company is located in south america, what cultural factor would explain the company's choice of a mechanistic structure?

1 answer:

8 0

Based on movies and books I've read, I noticed that the culture in South America is big on familial love. Their family spreads not only immediately, but even to cousins after cousins. You can see them living in family compounds and they greet each other as families.

Therefore, this could be a reason for the company's choice of a mechanistic structure. This structure is about the working together of single parts to create an efficient mechanism. Thus. familial relationship is very important. They have to invest in close family ties through social events.

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is it legal for south African firms to collude with one another to set prices ,provide some evidence in support of your answer

WARRIOR [948]

Well that depends if their collusion was done lawfully or unlawfully. If they followed guidelines under their law then they did nothing wrong. However, if they colluded to manipulate the economy for their own gain and did it contrary to the law then they guilty of a criminal offense. That is true no matter what company or country does that.

8 0

3 years ago

A chemical manufacturer is setting up capacity in Europe and North America for the next three years. Annual demand in each marke

Yuri [45]

Answer:

Explanation:

The two choices under consideration are building 4 million units of capacity in North America

YEAR 1 2 3

Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00

Variable cost @ 10 40,000,000.00 40,000,000.00 40,000,000.00

Divide by:

Conversion Factor 1.33 1.33 1.33

Multiply by:

Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3

NET CASHFLOWS 30,827,068.00 31,597,744.00 32,387,688.00

DCF @ 10% 0.909090909 0.83 0.75

Present Values 28,024,607.27 26,113,838.02 24,333,349.36

NET TOTAL COST 78,471,794.65

or building 2 million units of capacity in each of the two loca-tions. Building two plants will incur an additional one-time cost of $2 million.

YEAR 0 1 2 3

Production and Sales 4,000,000.00 4,000,000.00 4,000,000.00

Variable cost @ [(10+9)/2] 38,000,000.00 38,000,000.00 38,000,000.00

Additional cost 2,000,000.00

Conversion Factor 1.33 1.33 1.33 1.33

Growth(.1*.5)+(-.05*.5) 1.025 1.025^2 1.025^3

CASHFLOWS 1,503,759.40 29,285,714.29 30,017,857.00 30,768,304.00

DCF @ 10% 1 0.909090909 0.826446281 0.751314801

Present Value 1,503,759.40 26,623,376.62 24,808,146.28 23,116,682.19

NET TOTAL COST = 76,051,964.50

DECISION: The manufacturer should build 2 plants in 2 different locations because it gives a lower net present cost

<u>At what initial cost differential from building the two plants will the chemical manufacturer be indifferent between the two options?</u>

The difference in both options came from the fact that variable cost is lower in Europe and building the plant is more expensive. If there is no increase in cost and variable cost is same everywhere, then both options will be same.

5 0

3 years ago

If people expect the price of packaged coffee to rise next week, coffee demand will:

SVETLANKA909090 [29]

Increase, assuming packaged coffee=coffee, people will demand more coffee being aware that its price will be increased, thus they will try to consume its benefits before its price goes up.

4 0

3 years ago

Explain whether the following statements are true or false.

Nastasia [14]

Answer:

FALSE
TRUE
FALSE
TRUE
FALSE

Explanation:

Usually, derivative transactions are being used to hedge transactions so that decreased risk and used to increase the high returns, so the following statement is FALSE.
This statement is TRUE as hedge funds have typically had a minimum offer of the sum above $1 million.
This statement is FALSE as we can see that Hedge Funds are mostly uncontrolled on the market, on the other side we might argue that mutual funds are highly regulated.
this statement is TRUE because,The geographical location of the New York Stock Exchange is in New York.
this statement is FALSE, because the bid starts from, where the seller wants his minimum profit.

6 0

3 years ago

If management wants to maximize its stock price, and if it believes that the dividend irrelevance theory is correct, then it mus

kupik [55]

Answer:

The correct answer is False.

Explanation:

This statement is false, since the residual theory of dividends argues that these are irrelevant, that is, that the value of the company is not affected by its dividend policy. The main drivers of this theory are Modigliani and Miller. Both authors affirm that the value of the company is determined solely by the profitability and the degree of risk of its assets (investments), and that the way in which the organization divides its income between dividends and reinvestment does not have a direct effect on its value .

However, some studies show that significant changes in dividends affect the price of shares in the same direction, that is, increases in dividends translate into increases in stock prices, and vice versa. In response, M and M propose that the positive effects of dividend increases be attributed, not to the dividend itself, but to the informational content of dividends with respect to future income. Thus, any increase in dividends would cause investors to raise the price of the shares, while a decrease would cause a corresponding decrease in the price of the shares.

7 0

3 years ago