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victus00 [196]
3 years ago
6

Both Bison Autos and Sparrow Inc. incur a cost of $9,000 to manufacture a vehicle. However, the economic value created by Sparro

w Inc. is more than that created by Bison Autos. What does this indicate?A) Bison Autos has created a higher value gap than Sparrow Inc.B) Sparrow Inc. can charge a premium price on its automobiles.C) Bison Autos has a competitive advantage over Sparrow Inc.D) Both Bison Autos and Sparrow Inc. have achieved competitive parity.
Business
1 answer:
Tcecarenko [31]3 years ago
3 0

Answer: B.Sparrow inc can charge a premium price on its Automobiles.

Explanation:

Sparrow inc can charge a premium price on its Automobiles.

Economic Value is simple the amount of money an economic agent is willing to pay for a good or a service. When both companies incur same amount of costs, for a company to create higher economic value the price must be higher (premium price) or consumers (economic agents) are willing and able to pay premium price for sparrow inc automobiles

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One term is used to identify a collection of activities designed to gain access to personal and corporate information. The activ
tensa zangetsu [6.8K]

Answer: Social engineering

Explanation:

Social engineering is simply the use of deceit in order to manipulate individuals so that they can give out personal and confidential information about themselves which will be used for fraud.

The activities involved in social engineering are phishing, scams and hoaxes aimed at getting individuals to compromise sensitive data.

8 0
4 years ago
We also discussed that the spread (difference) between two futures prices for a storable commodity should be given by the cost o
otez555 [7]

Answer:

Market Principal notes that there should be no arbitration in the efficient market unless there is some arbitration so an efficient market system can quickly neutralize the situation.

The futures market for May, in the example above, is trading at $3.82 while the spot price is $3.45. The spot price month is listed but carriage costs and transportation are given as $0.20 and $0.03 per month.

This gives us a total price of $3.68 and this means the futures market is priced at a premium of $0.14.

3.82-= 0.14 (3.45 + 0.20 + 0.03)

This is not normal, of course, and traders will start shortening futures prices when going on the spot contracts for long. This would drive down the price of the futures while increasing the spot price, which should stabilize at $3.75.

Nevertheless, it is necessary to remember that in such equation there is also a borrowing fee which must also be taken into account. If the interest rate is 6 percent a year so it also takes into account a monthly finance fee of 0.5 percent of the contract value.

4 0
4 years ago
When Patey Pontoons issued 6% bonds on January 1,2016, with a face amount of $600,000, the market yield for bonds of similar ris
SashulF [63]

Answer:

Journal Entry

                             Dr.             Cr.

Jan 1,2016

Cash                $600,000

Bond Payable                     $600,00

Explanation:

On Jan 1, 2016 the bond is issued on the face value, so the straight value of $600,000 recorded as debit to cash and credit to bond payable. The cash is received against the a liability. The interest accrued transaction will be recorded on each year end.

3 0
3 years ago
Hurry!! #10
lord [1]
It should be specific
7 0
3 years ago
For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance.
vladimir2022 [97]

Answer:

a. Accounts Payable

Accounts payable have a credit balance and will increase under credit effect and decrease under debit effect.

b. Advertising Expense

Advertising expense has a debit balance and will increase in case of debit effect and decrease in case of credit effect.

c. Service Revenue

Service revenue will be credited and will increase in case of credit effect and decrease in case of debit effect.

d. Accounts Receivable

Accounts receivables will be debited and increase under debit effect and decrease under credit effect.

e. Retained Earnings

Retained earnings will be credited and will increase in case of credit effect and decrease in case of debit effect.

f. Dividends

Dividends will be debited which will lead to an increase in it under debit effect and decrease under credit effect.

4 0
3 years ago
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