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konstantin123 [22]
3 years ago
6

A U.S. automobile company sells many of its cars in countries that have lower taxes on corporate profits than the U.S. Why might

it be profitable for the automobile company to vertically integrate into the car-retailing business in such countries, rather than contracting with independent car dealers?
Business
1 answer:
stira [4]3 years ago
4 0

Answer:

It will be more profitable to vertically integrate because the company will be able to further reduce its costs.

Explanation:

Profit = Sales - Cost

The lower the cost, the higher the profit (if sales remains the same).

A Vertical integration strategy requires a company to <u>own or control its suppliers (backward integration) or its distributors or retailers (forward integration)</u>, and therefore, gain more control over its value chain.

<em>If the U.S. automobile company chooses to vertically integrate into the car retailing business in countries where it sells most of its cars, then it would cut out certain costs, such as the cost of contracting with independent car dealers, which would further improve profitability.</em>

Also, such forward integration into retailing means the company will develop processes along its value chain that will increase the efficiency of its operations.

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Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end
kow [346]

Answer:

Explanation:

business model of the securities is to earn capital gain and are classified as through fair vlaue through profit and loss

such securities are revalued at reporting date any gain are loss is recognized in profit and loss account.

Security name               Carrying Amount      Fair value         (Gain)/Loss

Telsa Bond                          15300                        11475                 3900                

Nike Bonds                          24400                       25620               -1220

Ford Bonds                          6100                           4880                  1220

the securities will recorded at fair value in the balance sheet and their respective gain loss will be recorded in profit and loss by making these entries

Entries

Loss on revaluation of investment           3900

                     Investment in Telsa bond             3900

To record the loss on telsa investment.

Nike Investment     1220

       Gain on revaluation of investment   1220  

To record the Gain on Nike investment.

Loss on revaluation of investment           1220

                     Investment in Ford bond             1220

To record the loss on Ford investment.

8 0
3 years ago
Do non-profit businesses such as the Red Cross need to be involved in Financial Management?
alexdok [17]
Yes it would soo the answer s true
7 0
3 years ago
The basis by which jobs are grouped is called ________. Group of answer choices
soldier1979 [14.2K]

Answer:

C: Departmentalization

Explanation:

Departmentalization is the basis by which jobs are grouped together. Jobs can be grouped in the following ways.

• Function. In functional departmentalization, departments are segregated i.e. separated from each other based on functions or tasks they perform. Corporations might have a different functions like supply chain, finance, human resources etc. All the worker specializations for those areas are grouped together, and people with common skills work in common units.

• Product. A large manufacturing motor company might group its common tasks together by products which they are manufacturing. Departments are separated based on type of product produced by the company. Each individual department is responsible for producing and selling the type of product assigned to them. For Example 1) Two Wheeler, 2) Three Wheeler, 3) Four Wheeler, 4) Heavy Motors

• Geography. If an organization’s customers are scattered over a geographic regions, separate departments are made based on the company’s operations to be carried out either over a vast area or within some restricted area through branches or offices established at different zones or places in that area. For Example 1) North Zone, 2) South Zone, 3) East Zone, 4) West Zone  

• Process. A manufacturing plant might choose to organize common tasks around process. A tubing plant might organize departments around casting, pressing, finishing, packaging, etc. Each department specializes in one particular part of the manufacturing process. The same kind of departmentalization is true of the Department of Motor Vehicles, where you proceed from one area to another to renew your license plates or your driver’s license.  

• Customer. In this, departments are separated from each other based on the types or groups of customers to be handled or dealt with; For example

i) Foreign Customers

ii) Domestic Customer

iii) Wholesale Customers

iv) Retail Customers

Conclusion

Large corporations can use any or all of these types of departmentalization to organize themselves. They might have a manufacturing area that organizes itself around process, but then a sales department that is organized geographically and a corporate support center that’s organized functionally.

6 0
2 years ago
Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about b
lutik1710 [3]

Answer:

Natalie and Curtis Cookie Company

The bank manager is willing to lend Cookie $12,000.

Explanation:

a) Data and Calculations:

Cost of equipment (commercial oven) to be purchased = $17,000

Amount already set aside by the company for the purchase = $5,000

Difference required from the bank = $12,000 ($17,000 - $5,000).

b) The bank manager should be willing to lend the company the sum of $12,000, which will make up the balance for the purchase of the commercial oven.  The cost of the oven is $17,000 and the company had set aside $5,000.  This means that it remains $12,000 to make up the purchase cost.  The negotiation for a bank loan will concentrate on the $12,000 required to make up the amount.

8 0
3 years ago
A typical housing lease may require a tenant to:
Alex

A typical housing lease could ask for all of the above. Tenants are expected to keep up the property and repair any damages, if not the cost of the repairs will be taken from the security deposit. Some leases require renter's insurance to protect against loss and most leases will have a clause stating you must avoid illegal activities on the property.

3 0
2 years ago
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