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3 years ago

What is the optimal mode of entry in the situation where a firm wants to reduce its risk through a sharing of costs?

Business

2 answers:

Blizzard [7]3 years ago

5 0

Answer:

The correct answer is option B

B. Exporting

Explanation:

When looking at "Deciding on the international entry mode" section (8-3). The classification from low to high risk is; indirect exporting, direct exporting, licensing, franchising, joint ventures, branch offices, wholly owned subsidiaries.

kow [346]3 years ago

4 0

Answer:

a. Strategic alliance

Explanation:

A strategic alliance is when two or more companies come together to achieve a certain objective. The companies that come together still remain independent.

Some of the reasons for a strategic alliances include-

1. Penetrating a new market.

2. Increasing market share

3. Increasing economies of scale.

Strategic alliances reduces cost because the number of companies that would bear the cost of a project has increased.

A subsidiary is a company that is wholly owned by another company known as the parent company. A subsidiary doesn't lead to cost reduction.

In acquisition, a company gains control by purchasing more than 50% of a company's shares. It doesn't lead to cost reduction.

Export is selling goods and services abroad.

Licensing is giving another company the permission to make use of its property in its production process.

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On May 31, 2018, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent

asambeis [7]

Answer:

$800,000

Explanation:

The calculation of book value of the assets of the cosmetics component is given below:-

Gain on Sale of the Assets = Income from Operation of a Discontinued Components - Income from Operations

= $620,000 - $300,000

= $320,000

Gain/Loss on Sale of Asset = Sale Value of Assets - Book Value of Assets

= $1,120,000 - $320,000

= $800,000

5 0

3 years ago

Faith Cassen has recently been hired as the manager of Gibraltar Coffee Shop. Gibraltar Coffee Shop is a national chain of franc

IrinaK [193]

Answer:

a. I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.

b. I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).

c. I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.

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3 years ago

a new machine with a purchase price of $109,000, with transportation costs of $12,000, installation costs of $5,000, and special

egoroff_w [7]

Based on the information given the cost basis is $132,000.

Using this formula

Cost basis=Purchases price+ Transportation costs + Installation costs + Special acquisition fees

Where:

Purchases price=$109,000

Transportation costs=$12,000

Installation costs=$5,000

Special acquisition fees=$6,000

Let plug in the formula

Cost basis=$109,000+$12,000+$5,000+$6,000

Cost basis=$132,000

Inconclusion the cost basis is $132,000.

Learn more about cost basis here:brainly.com/question/15637366

6 0

2 years ago

how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?

alexira [117]

Answer:

A larger industrial and service sector, and a larger number of people working outside of agriculture, can indicate a higher level of industrialization in the economy and vice versa. This means that the size of industrial service and the sector of agriculture employment rate indicates the level of industrialization because if the agriculture employment is higher than the industrial service it means that the country is not fully developed yet and therefore the level of industrialization is lower. But if the industrial service is higher than the agriculture employment that suggests or indicates that the country is developing or developed. For example in the United States the size of the industrial/service sector is much larger than it's agricultural employment and therefore this should suggest that country is much more industrialized or developed and the United States is. In comparison you take a developing country such as Chad and you can see that the agricultural employment is higher than the size of the industrial/service sector and in relation to this you can see that Chad must have a lower level of industrialization and in fact it does.

Explanation:

6 0

3 years ago

One important managerial function is controlling, and the first step in the controlling process consists of

dezoksy [38]

One important managerial function is controlling, and the first step in the controlling process consists of setting clear performance standards.
<span>The goal of the controlling is to control that standards are met and stated goals of the organization are achieved .
</span>Standards are used to measure the actual performance and are the benchmarks towards which efforts of entire organisation are directed. Some examples of standards are: revenue to be earned, c<span>ost to be incurred., improved motivation, improved quality of products,..</span>

6 0

4 years ago