Answer:
Big buy must sell at large at a smaller price which will give tough time to Radio Shack and this is the threat that RadioShack don't want to bear.
Explanation:
Best Buy will choose large quantity because it helps in satisfying the needs of public at large at a lower price. This will force RadioShack to lower its price which will result in losses and this fear of losses will act as a enterance deterent. Though the profit on this strategy is lower but it will safeguard future revenues as RadioShack will not enter the market or get defeated very quickly.
Answer:
$5
Explanation:
Given that,
Asset turnover ratio = 0.5 times
Net profit margin = 10 percent
Average total assets = $100
Asset turnover ratio = sales ÷ Total asset
0.5 = sales ÷ $100
sales = $50
Profit margin = Net income ÷ sales
0.10 = Net income ÷ $50
Net income = $5
Therefore, the net income of GoodTimes, Inc. is $5.
<span>Juan's employer issued him a </span>payroll debit card. The payroll debit card allows J<span>uan to purchase with it, access cash through an ATM with it, and transfer funds with it.</span> The risk for Juan is in case if it is lost or stolen and someone successfully uses it to make purchases, he has no recourse—he is simply out the money.
Answer:
Effective interest recognized on June 30, 20X1, will be equal to $3,354
Explanation:
Data provided from the question,
Amount of bond issued on January 2, 20X1 = $100,000 of 6% bonds
Interest = $3000
Payable semi-annually on June 30 and December 31
Number of years to mature = 5 years
The bond issued for $95,842 with an effective interest rate of 7%
Therefore, the Effective interest recognized on June 30, 20X1 =
bond issued × effective interest rate × semiannually(1/2)
= $95,842 x 0.07 x 0.5
= $3,354
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.
<u>Explanation</u>:
Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:
- failing to integrate acquisitions
- unable to understand how the acquired organization’s assets would fit with their own lines of business
- paying high premium for the target's common stock
- not acting in best interest of shareholders
The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.
