Answer:
(A) market saturation
Explanation:
A franchisee starts a new franchise by entering into a franchising agreement with a franchiser to use its brand name and sell its products. The biggest challenge faced by this new franchise is market saturation.
This occurs because<u> the presence of other similar businesses, whether franchises or independently owned businesses in the market, creates lots of competition for the new franchise.</u>
Answer: Production and consumption occur simultaneously
Explanation:
Services are intangible quantities that possess value and can be traded, services cannot be stored therefore it most times is produced and consumed at the same time.
Answer:
Social Benefit / Positive Externality
Explanation:
Each economic transaction has benefits & costs to society.
Eg: Vaccinations purchase by patients- benefits patients by preventing them from a disease for which they pays monetary cost to the doctor, which is latter's income benefit.
However, these both are patient's & doctor's private benefit & costs.
Externalities imply extra harm or benefit to other un-indulged parties, without any monetary exchange for that harm or benefit. Socially Beneficial are positive externalities, Socially harming are negative externalities.
Eg - In this case, vaccination is the positive externality : It has extra benefit for other people who are less probable to transmitting illness, without having paid for that prevention in any way.
But, Individual consumers (here patients) & producers (here doctors) decisions are based on their private benefit & cost. So, consumers' (here patients') willingness to pay will depend only on their private benefit of disease prevention & ignore the extra social benefit from the positive externality vaccination - as society less illness probability.
Answer:
Margin of safety= 950 units
Explanation:
<u>First, we need to calculate the break-even point in units:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 42,000 / (54 - 14)
Break-even point in units= 1,050
<u>Now, the margin of safety in units:</u>
<u></u>
Margin of safety= (current sales level - break-even point)
Margin of safety= 2,000 - 1,050
Margin of safety= 950 units
Answer: critical ratio
Explanation:
The priority rule which processes jobs according to the smallest ratio of due date to processing time is refered to as the critical ratio.
The critical ratio (CR) is typically used in sequencing work especially during projects or in organizations. For this sequencing, the job that has the lowest critical ratio will be the one that will have to be scheduled first for processing.
