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3 years ago

Which of the following is a risk (or potential pitfall) of cost leadership?

Business

1 answer:

Lapatulllka [165]3 years ago

7 0

Answer:

a. Cost cutting may lead to the loss of desirable features

Explanation:

In the business market, sometimes there occurs a price war between the various companies regarding the same type product and each company reduces the price to as minimum as possible to take the cost leadership in the market. Some drawbacks that occur in such a strategy of companies are listed here -

There is a tight control on the expenses during the manufacturing of products which often results in loss of desirable features in the products
No new innovations are made as companies focus mainly of the current product
The feedback of customers seem to be of no importance in such conditions
This strategy promotes the lower quality products in the market

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The term protectionism, when applied to international trade, refers to governmental restrictions and incentives to affect trade

SVETLANKA909090 [29]

Answer:

True

Explanation:

Protectionism refers to barrier on import products by restricting products from the foreign market. it can be achieved by putting heavy taxes on imports or implying strict regulation on import products.

it is not a fixed approach it is done when a country decides to go strong in the manufacturing field or want to strengthen its domestic industries by giving subsidy for setting up industries.

5 0

3 years ago

In a limited partnership, limited partners do not have the same rights as general partners to participate in management. Group o

dimaraw [331]

In a limited partnership, limited partners do not have the same rights as general partners to participate in management. This statement is true.

<h3>What is a limited partnership?</h3>

A limited partnership is a type of partnership that is made up of general partners and limited partners. The liability of limited partners is limited to the amount invested in the business while the general partners have unlimited liabilities.

The limited partner cannot partake in the daily running of the business unlike the general partner.

To learn more about limited partnership, please check: brainly.com/question/9244934

#SPJ1

5 0

2 years ago

7. Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that t

ser-zykov [4K]

Answer:

$17,500

Explanation:

Given that,

Actual factory overhead for the year = $1,375,000

Estimated overhead = $1,250,000

Estimated machine hour = 50,000

Total machine hours for the year = 54,300

Predetermined rate per hour:

= Estimated overhead ÷ Estimated machine hour

= $1,250,000 ÷ 50,000

= $25 per hour

Applied overhead:

= Predetermined rate per hour × Total machine hours

= $25 × 54,300

= $1,357,500

Therefore, the under-applied amount for the year:

= Actual factory overhead - Applied overhead

= $1,375,000 - $1,357,500

= $17,500

4 0

3 years ago

You are selling an autographed Steve Nash rookie basketball card online for $170. A potential buyer contacts you and offers to p

Ierofanga [76]

Answer:

Option (C) is correct.

Explanation:

Selling price of a basketball = $170

A potential buyer contacts you and offers to pay you$170 Canadian dollars.

Exchange rate between the U.S and Canada is as follows:

$1 U.S = $1.25 Canadian

So,

Worth of $170 U.S in terms of Canadian dollar is as follows:

= $1.25 × $170

= $212.5 Canadian dollars

If you take this deal, you will have returned Steve to his homeland and Earned less than if you accept $170 U.S.

Because, the worth of $170 U.S dollars is $212.5 Canadian dollars. Hence, there is a loss of $42.5 Canadian dollars if he will accept the deal.

So, it is better for him to accept $170 U.S dollars.

8 0

3 years ago

A process that produces computer chips has a mean of .04 defective chip and a standard deviation of .003 chip. The allowable var

FrozenT [24]

Answer:

a) 0.667

b) Yes

Explanation:

Data provided in the question:

Mean = 0.04 chip

Standard deviation, s = 0.003 chip

Lower Specification Limit, LSL = 0.034

Upper Specification Limit, USL = 0.046

Now,

a) Capability Index = ( USL - LSL ) ÷ ( 6 × s )

Capability Index = ( 0.046 - 0.034 ) ÷ ( 6 × 0.003 )

= 0.667

b) Cpk = min( [( USL - Mean) ÷ ( 3s ) , ( Mean - LSL) ÷ ( 3s ))

Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ), ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))

Cpk = min( 0.667, 0.667 )

Therefore,

Cpk = 0.667

as Cp and Cpk are equal

Hence, it is ideal condition and process is capable

3 0

3 years ago