1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irakobra [83]
2 years ago
14

Apple Inc.'s decision to acquire Beats Electronics and Beats Music in 2014 for $3 billion rather than enter into a joint venture

with that company was an attractive strategy option for entering a promising new industry in headphones and streaming music services because it
A. was an effective way to hurdle entry barriers, was quicker than trying to launch a brand-new start-up or joint venture operation, and allowed Apple Inc. to move directly to the task of building a strong position in the target industry.
B. offered Apple Inc. the prospect of gaining an immediate competitive advantage in the new industry and thus helps ensure that the diversification move could pass the competitive advantage test for building shareholder value.
C. was less expensive for Apple Inc. than launching a new start-up operation, thus passing the cost-of-entry test.
D. was more likely to result in Apple Inc.'s passing the shareholder value test, the profitability test, and the better-off test.
E. would have entailed divulging sources of competitive advantage such as trade secrets, confidential financial information, and proprietary processes that Apple is unwilling or unable to share.
Business
1 answer:
Neko [114]2 years ago
5 0

Answer:

A. was an effective way to hurdle entry barriers, was quicker than trying to launch a brand-new start-up or joint venture operation, and allowed Apple Inc. to move directly to the task of building a strong position in the target industry.

Explanation:

1. Was an effective way to hurdle entry barriers

There are some entry barriers that need to be crossed before entering some industry like electronic new industry in headphones and streaming music services. For example, already existing firms might patent or copyright for their intellectual property which may require Apple Inc. to its own technology or wait for some years before entering.

2. Was quicker than trying to launch a brand-new start-up or joint venture operation.

Just like one above, acquiring Beats Electronics and Beats Music in 2014 by Apple Inc. saved it from all hurdles from entry barriers or having wait for some to sort bureaucracies  of launching a brand-new start-up or joint venture operation.

3. and allowed Apple Inc. to move directly to the task of building a strong position in the target industry.

Since the entry barriers had already being crossed and the bureaucracies  of launching a brand-new start-up or joint venture operation have been avoided by acquiring Beats Electronics and Beats Music, this gave Apple Inc. to move directly to the task of building a strong position in the target industry without any further delay.

You might be interested in
Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,770,000 instal
inessss [21]

Answer:

Chevron Phillips (CP)

a. The gross income or annual savings is:

= $804,846.

b. The income tax for the 1st year assuming a marginal tax rate of 40% is:

= $131,600.

c. The after-tax cash flow for the 1st year is:

= $559,400.

Explanation:

a) Data and Calculations;

Cost of new laboratory equipment = $1,770,000

Borrowed capital = $849,600 ($1,770,000 * 48%)

Borrowing rate = 13.4%

Borrowing interest expense for the first year = $113,846

Depreciation = $362,000

Taxable income = $329,000

Gross savings = $X

$X = $804,846 ($113,846 + $362,000 + $329,000)

Income tax for the 1st year:

Marginal tax rate = 40%

Taxable income = $329,000

= $131,600 ($329,000 * 40%)

After-tax Cash Flows for the 1st year:

Gross savings =    $804,846

Interest expense      113,846

Depreciation          362,000

Taxable income  $329,000

Income tax              131,600

Net income          $197,400

Cash Flows:

Net income               $197,400

Depreciation             362,000

After-tax cash flow $559,400

6 0
3 years ago
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
Aloiza [94]

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = \mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}

=\$ 250 /(1+0.08) \wedge 19

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

7 0
2 years ago
In capitalism what does competition do for consumers?
Aleks [24]

D. It keeps prices fair for consumers

3 0
3 years ago
Read 2 more answers
Suppose you sell a fixed asset for $99,000 when its book value is $75,000. if your company's marginal tax rate is 39 percent, wh
strojnjashka [21]

Determining Depreciation Recapture.

Sale Value = $99,000

Less: Adjusted basis(book value) = ($75,000)

Depreciation recapture = $24,000

So Depreciation recapture = $24,000

The marginal tax rate is the amount of additional tax paid for each additional dollar earned in income. The average tax rate is the total tax paid divided by total income. A marginal tax rate of 10% means that 10 cents from the next dollar you earn will be tax deductible.

In taxation, a tax rate is a rate at which a company or individual is taxed. There are several ways to express tax rates, including statutory, average, marginal, and effective. These tax rates can also be presented using different definitions (inclusive and exclusive) that apply to the tax base.

Learn more about marginal tax here

brainly.com/question/14145043

#SPJ4

3 0
1 year ago
Reviewing the Budget
vekshin1

Answer:

For each month we calculate the variance by finding the difference between the Actual numbers and Budget numbers.

Then we indicate if the practice was "Overbudget" or "Underbudget".

If the actual numbers are less than the budget numbers, the budget is we say that the budget is under budget.

If the actual numbers are more than the budget numbers, the budget is we say that the budget is over budget.

Month    Budget   Actual               Variance        Under/ over  

<u>                                                              (Actual -Budget)   Budget </u>

January  23,55,872   17,90,929      -5,64,943      Under Budget

February  26,54,031   28,27,606       1,73,575      Over Budget

March  22,39,980   29,24,180        6,84,200      Over Budget


4 0
3 years ago
Read 2 more answers
Other questions:
  • The money multiplier equals:________.
    10·2 answers
  • Lois kay is an experienced baker. she has decided to bake and decorate her daughter's wedding cake instead of ordering one at th
    8·1 answer
  • What is a new market?
    5·1 answer
  • Under which circumstance would someone need disability insurance?
    11·2 answers
  • All of the following are disadvantages of fair value use except aparability between companies may be impacted by different fair
    6·1 answer
  • Licensee Gary advises Buyer Tim that a property Tim is interested in is zoned for commercial use. In fact, Gary does not know wh
    10·1 answer
  • Describe how interest rate changes affect the saving rate in the united states. how do banks adjust interest rates on deposits a
    6·1 answer
  • Creating your own flyer assignment
    10·1 answer
  • The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is
    9·1 answer
  • Managerial activities include all of the following except ________.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!