Answer:
Payback is 19 months
Explanation:
It is a capital budgeting problem. Firm has invested in TQM's Channel Support systems of $1,500,000. It will increase demand of product by 1.7%.
$166385985 x1.7071. = $166389948
Last years sales revenue was $163,608,638. A 1.7% increase will mean the saleswill be -
$166385985- $163608638 = 2781347
Thus increase in sales revenue is-
Now consider contribution margin. From total sales direct variable costs are deducted to get total contribution. It is 34.2% . So extral contribution due to 1.7% increase in sales is-
$2781347 x 34/2%= $95122
Thus increase in contribution margin will also increase profit to the same extent as there is no addition in fixed cost due to this project. So firm will be able to recover $951,221of initial investment of $1,500,000 in one year. Pay back is the time required to recover this full initial investment. It ascertained by dividing $1,500,000 amount by the net addition in profit per year. Answer is-
1,500,000+ 951221= 1.6759yrs x12months= 19months
Answer: A.Venture capital firm
Explanation:
Carlos's company is a new business. One with growth potential and less than a year under it's belt and yet it has done some work with Calvin Klein. He now needs capital to continue the momentum and there is a specialized finance vehicle for people like him, Venture Capitalism.
Venture Capitalism refers to Venture Capital firms investing funds in growing or starting businesses. They have a high risk appetite which enables them to go into business with new firms. The key criteria is that there MUST be high Growth Potential.
Their strategy is simple, they invest in a new company in exchange of a certain amount of ownership of the business and then 4-6 years later exit the company when they are bought out.
Carlos's business is growing and has huge potential, if he doesn't mind sharing some of his ownership, Venture Capitalism is the best way to go.
Answer:
b. a specialty store.
Explanation:
A specialty store. -
It is a type of retail business , which focus on certain goods and services , is known as a speciality store .
These type of company are expert in making a certain goods or services .
For example ,
The store that are designed specifically for men clothing or women clothing or specific for toys , cosmetics etc .
Hence , from the question , the correct term according to the given information of the question is a specialty store .
Overstaffed is "having more members of staff than are necessary" and overhired is "hiring too many employees".
Answer:
That statement is true.
Explanation:
"Key areas" of the business refers to business activities that directly related in core business operation. These activities are the one with most influence in determining how much products the companies able to sell to the consumers.
Internal weakness in SWOT analysis refers to consist of the things from within the company that can create some sort of damage to the company's operation if not taken care of.
Leaving internal weakness unfixed with heavily damage the productivity of company. Not only that, it could also damage the market's perception toward the company. When the customers have completely lost faith in the quality of company's product, there is almost nothing the company can do to fix it.
