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Eva8 [605]
3 years ago
10

If a company is experiencing increasing pressures for cost reduction for its products, which of the following courses of action

should it consider?
a. sell licenses to produce the products internationally.
b. explore opportunities for exporting or create a wholly-owned subsidiary within a country.
c. establish a joint venture with a foreign company.
d. pursue a franchising model for the company.
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer: explore opportunities for exporting or create a wholly-owned subsidiary within a country

Explanation:

When a company is experiencing increasing pressures for cost reduction for its product, the course of action should be considered by the company is to explore opportunities for exporting or create a wholly-owned subsidiary within a country.

This is necessary to bring about economies of scale which in turn leads to lesser production cost and cheaper prices for the products.

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Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits of using standa
uranmaximum [27]

Answer:

c. used to indicate where changes in technology and machinery need to be made

Explanation:

Standard Costs are established through past experiences and hence they can be used to control costs, and plan production schedules.

Changes in technology and machinery need to be made is part of perfomance management with a future outlook.

7 0
3 years ago
Read 2 more answers
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had ori
just olya [345]

Answer:  $‭322,000‬

Explanation:

Consolidated income = Net income from Ackerman + Net Income from Brannigan + Excess depreciation - Amortization of unpatented tech - Gain from transfer of equipment

Excess depreciation = New depreciation of equipment - Old depreciation

Depreciation is straight line;

= (200,000/5 years) - (110,000/5)

= $18,000

Gain from transfer of equipment

= Sales - Book value

= 200,000 - 110,000

= $90,000

Consolidated income = 300,000 + 98,000 + 18,000 - 4,000 - 90,000

= $‭322,000‬

5 0
4 years ago
Financial economists prefer to use market values rather than book values when measuring debt ratios because market values are:__
Sindrei [870]

Financial economists prefer to use market values rather than book values when measuring debt ratios because market values are a better reflection of current value than historical value. the correct answer is option(b).

Market capitalization is frequently used to refer to market value, which is the price an asset commands on the market. Because they depend on a variety of variables, including the physical working environment, the overall state of the economy, and the dynamics of supply and demand, market values are dynamic in nature.

An asset's book value is determined by the balance in its balance sheet account. Asset values are determined by subtracting any depreciation, amortization, or impairment expenses from the asset's initial cost.

Since market value includes profitability, intangibles, and potential for future growth, it typically exceeds book value for a company. The net asset value investors receive when they purchase shares is measured using book value per share.

The complete question is:

Financial economists prefer to use market values when measuring debt ratios because:

  1. market values are more stable than book values.
  2. market values are a better reflection of current value than historical value.
  3. market values are readily available and do not have to be calculated like book values.
  4. market values are more difficult to calculate which makes financial economists more valuable
  5. None of these.

To know more about  market values refer to: brainly.com/question/19131751

#SPJ4

6 0
2 years ago
Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time wor
SpyIntel [72]

Answer:

D. The size of the labour force will increase.

Explanation:

Switching over from part time to full time simply means either they are done with what makes them walk part time,or the work is demanding and the government decided to make them full time staffs,due to the availability of resources to cater for them.

More new part time individuals will be employed to take their place thereby creating jobs and falling the official unemployment rate.

4 0
3 years ago
define a stock market bubble, describe what happens after a bubble, and explain how the law of supply and demand creates both bu
Stells [14]

Answer

<u>A bubble is a phenomena in investing that occurs when investors increase their demand in assets so much that they cause the price to move to a value beyond accurate reflection of its actual worthiness</u>. When a bubble happens, <u>the prices of stock will fall rapidly</u>.When there is increase in the share price of stock rapidly caused by individual-perpetuating, the share value can rise beyond asset value making investor to withdraw their money faster because <u>supply will exceed demand and cause share price to fall.</u>

An increase demand on assets by investors will make the price to increase beyond rational economic value. The real worth of the stock will now be determined by firm’s performance. Investing in bubble can appear to last forever, but because they are formed by self-perpetuated reasons, they eventually fall and the money that was invested into them is lost. In such cases, investors would run to withdraw their money and avoid the loss of fall in share prices.

8 0
3 years ago
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