A licensing firm is a firm that is offered the right to produce and market another firm's products if it agrees to specific operating requirements.
<h3>What is a licensing firm?</h3>
A firm, which does not have a product of its own, but specializes in production and marketing of its client firms' products by the way of obtaining a licensed agreement, it is known as a licensing firm.
For example, in India, Varun Beverages Ltd. is a licensing firm that has been offered the rights to produce and market the products for PepsiCo.
Hence, the significance of a licensing firm is aforementioned.
Learn more about a licensing firm here:
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Answer:
Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.
An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.
Explanation:
Answer:
1. Processing time:
Processing time = Theoretical time
Processing time is there for 6 minutes
Non processing time = Actual cycle time - processing time
= 7.35 - 6
= 1.35 minutes
2. Manufacturing Cycle Efficiency (MCE):
= Processing time / Actual cycle time
= 6 / 7.35
= 81.6%
Answer:
- $ 80,000
Explanation:
The existing Power's profit margin is $0 ($41,700 - $41,700 + $0).
<u>Dropping Windsor division has the following effect :</u>
Increase in cost - opportunity cost of $ 80,000
<em>The opportunity is due to lost contribution </em>
Fixed costs are unavoidable thus, they are irrelevant when doing this calculation.
thus,
Power's profit margin will be - $ 80,000 if the Windsor division was dropped.
I would say d as investment banks are generally concerned with lending money to start up or fund business ventures. Commercial banks lend to almost anyone that can repay.
