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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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Shaan and Anita currently insure their cars with separate companies, paying $790 and $645 a year. If they insure both cars with
iren2701 [21]

Answer:

The future value of annual savings is $1,370.30

Explanation:

The amount of annual savings =(Shaan's premium +Anita's premium)*10%

Shann's premium is $790

Anita's premium  is $645

Annual savings =($790+$645)*10%

                          =$143.5

The future value formula is given below:

=-fv(rate,nper,pmt,-pv)

rate is 5% annual interest rate

nper is the 8 years that is the duration of investment

pmt is the annual savings of $143.5

pv is the total amount invested now which is zero

=-fv(5%,8,143.5,0)

fv=$ 1,370.30

8 0
3 years ago
Mcdougald Corporation is a service company that measures its output by the number of customers served. The company has provided
ANEK [815]

Answer:

The spending variance for "Employee salaries and wages" for March would have been closest to $1,200F .

Explanation:

Customers served (q)

Employee salaries and wages ($58,400 + $1,000q)

The spending variance for "Employee salaries and wages" for March would have been closest to

         Actual Results      Flexible Budget     Revenue and Spending Variances

(q)          26                 26      

($58,400 + $1,000q) $ 83,200 $ 84,400    $1,200F

6 0
3 years ago
Assume Gillette Corporation will pay an annual dividend of 0.61 one year from now. Analysts expect this dividend to grow at 11.5
SashulF [63]

Answer:

I'm so sorry but I do not know the answer to these kind of a question : )

8 0
1 year ago
Shane, a sales manager, remarked that typically, her employees sincerely and positively overstate their job performance and abil
e-lub [12.9K]

Answer:

C) holier-than-thou

Explanation:

A holier than thou appeal refers to an attitude of superiority. It was originally used as a religious expression to show that someone was more "holy" or more religious than other people.

But this approach of feeling superior also takes place in a business when a member of the organization feels that his/her job is better and more important than the jobs and performance of the rest. It implies being super optimistic about your own abilities and capabilities, enough for them to diminish others.

E.g. how many times have you heard someone else say that if it was him/her that was doing something important, everything would be great and flow smoothly, because they are the best in doing this and that, and about everything else.

8 0
3 years ago
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under th
olchik [2.2K]

Answer:

First option will be recommended.

Explanation:

To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.

- Net present value of first option = Lump sum receipt = $150,000.

- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:

 +  Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.

As net present value of the first option is higher than the second option, first option will be recommended.

8 0
3 years ago
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