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Schach [20]
3 years ago
8

AI Rubber is one of four suppliers of molded rubber products and has a 45% market share. The market for its products is shrinkin

g. AI Rubber is part of a larger corporation that includes a total of seven different companies. In the BCG matrix, AI Rubber would be considered a ________.
(A) a star
(B) a cash cow
(C) a question mark
(D) a dog
Business
1 answer:
igomit [66]3 years ago
3 0

Answer:

(B) a cash cow

Explanation:

<u>It growth rate is decreasing, but their market share is high. It is a cash cow</u>

This means it is a division which generates cash. It proceeds should be used to generate stars.

<u>Start: high market share high growth</u>

It will be a division with their growth increasing, in this case is decreasing.

<u>question mark: high growth low market share</u>

Al Rubber is the complete opposite, its market share is high and it growth is decreasing.

<u>dog: low growth low market share</u>

While the growth is low, the market share is high, so it is not a dog.

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Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018
konstantin123 [22]

Answer and Explanation:

  • Closing Balance (Retained earning ) of 31 Dec 2018 is called Opening Balance of 1 Jan 2019 , i.e. $42,100
  • There is no particular information provide for 1 Jan 2018 .So, assume there is Zero balance of retained Earning
  • Calculation of retained earning of 31 Dec 2017

Retained earning                             $42,100

Less: revenue during the year        $19,400

Add: Expenses During the year      $9,800

<u>Add : Dividend                                  $500 </u>

Retained earning on 31 Dec 2017 $33,000

  • Retained earning is a temporary account So, $33,000 is balance of Retained earning At 30 June 2018.
4 0
3 years ago
Which of the following is likely to increase a country's gross domestic product (GDP)?
antiseptic1488 [7]

Answer: In macroeconomics, gross domestic product (GDP) is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a determined period, normally one year or quarterly.

GDP can be measured by adding up all the final demands for goods and services in a given period. In this case, the destination of the production is being quantified. There are four major areas of spending: household consumption (C), government consumption (G), investment in new capital (I) and the net results of foreign trade (exports-imports).

And it can also be measured by adding the income of all the factors that contribute to the production process, such as wages and salaries, commissions, rents, copyrights, fees, interests, profits, etc. The GDP is the result of the calculation by means of the payment to the factors of the production. All this, before deducting tax.

Thus the statements "b. An increase in Social Security expenses" as government expenses, "c. An increase in retirement and pension benefits to elderly citizens" as subsidies or transfers, and " d. An individual receiving an annual performance bonus of $5,000" as financial interest are likely to increase a country GDP.

3 0
3 years ago
Read 2 more answers
Explain the difference between socialism and a pure command economy
AleksandrR [38]
Command economies have public enterprises where the government controls everything including business and production. In socialism, the means of production, distribution, and exchange are owned or regulated by the community as a whole. 
4 0
3 years ago
The best way to limit competition is to: Choose one: A. control a resource that is essential in the production process. B. lobby
zloy xaker [14]

Answer:

A. control a resource that is essential in the production process.

Explanation:

When the crucial resource is required to make a product, then the restrictions on such resource would not allow, many people to enter in such business.

Also that the resources will be restricted in some or other manner, its price will increase accordingly the cost of producing such article would also increase.

As the cost of production will increase only producers with a high budget and resources in terms of finance will chose it.

5 0
3 years ago
Average Rate of Return
Natali [406]

Answer:

22%

Explanation:

The formula to compute the accounting rate of return is shown below:

= Average net income ÷ average investment

where,  

Average net income is

= Total income ÷ number of years

= $148,500 ÷ 5 years

= $29,700

And, the average investment would be

= (Cost - salvage value) ÷ 2

= ($300,000 - $30,000) ÷ 2

= $270,000 ÷ 2

= $135,000

Now put these values to the above formula  

So, the rate would equal to

= $29,700 ÷ $135,000

= 22%

8 0
3 years ago
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