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iragen [17]
3 years ago
8

Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constr

ucting their projects using concrete blocks as they are more durable and easier to lay out when compared to traditional brick and mortar. Cajemp, however, has been reluctant to use concrete blocks because its brick and mortar houses have been selling well so far. They will continue to sell the same even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario?
a. Strategic dissonanceb. Strategic alliancec. Competitive inertiad. Competitive advantage
Business
1 answer:
seraphim [82]3 years ago
8 0

Answer: competitive inertia

                       

Explanation: Competitive inertia or corporate inertia refers to a company that is rigid in its way of operations and refuses to change its way of thinking as per the changing norms in the industry.

In the given case, Cajemp inc. is refusing to start making building from concrete blocks in place of brick and mortar due to their positive past experiences.

Hence from the above we can conclude that the given case illustrates competitive inertia.

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Answer:

He should pay = $270,000

Explanation:

<em>The amount he should pay for the investment is the present value of he net income discounted at the rate of return of 12%</em>

The occupancy rate = 100 -5= 95%

The net income = occupancy rate × income - expenses

                              = 95%× 3,600× 12 - 8,640= 32400

If we assume that the income is earned forever, then the Present value of the income will be

PV of net income = A/r

A-32400 , r -12%

                            = 32400/0.12

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6 0
3 years ago
Describe Amazon’s diversification strategy using Exhibit 8.8. What type of diversification strategy is Amazon pursuing? Explain.
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Answer and Explanation:

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4 years ago
Characteristics of a successful business
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6 0
3 years ago
Read 2 more answers
The following costs relate to Tower Company:
Advocard [28]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Variable manufacturing cost, $30

Applied fixed manufacturing overhead, $15

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7 0
3 years ago
An investor enters into a short forward contract to sell 100,000 British pounds for US dollars at an exchange rate of 1.5000 US
goldfiish [28.3K]

Answer:

(a) gain $1,000.

(b) lose $2,000.

Explanation:

If the investor's contract states that he should sell British pounds for US dollars at an exchange rate of 1.5000 US dollars per pound, he will gain money if the exchange rate falls below that value and lose if it rises above it.

(a) 1.4900

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(b) 1.5200

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The investor would lose $2,000.

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