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3 years ago

Firms are likely to prefer selective distribution when intermediaries

1 answer:

7 0

<span>If the intermediary provides some type of extra support, and if they provide exclusivity for the product, the firm will likely pursue this avenue. Selective distribution holds that a company will use some, but not all, of the distributors as a way of getting their products to market, and in this case, finding intermediaries who will not provide competitors for the product is a smart way of maximizing profitability.</span>

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Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 134,000 kites (the local curren

Mama L [17]

Answer: Please refer to Explanation

Explanation:

1 October 2017

No entry required as contract not yet exercised

31st December 2017

DR Forward Contract (220,000*(0.67-0.66)) $2,200

CR Translation Adjustment $2,200

(To record change in value of forward contract )

31st December 2017

DR Foreign Currency (Kites) (220,000*0.66) $145,200

CR Cash $145,200

(To record purchase of foreign currency)

31st December 2017

DR Cash ( 145,200 + 2,200) $147,400

CR Foreign Currency (Kites) $145,200

CR Forward Contract $2,200

(To record delivery of foreign currency and forward contract execution)

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3 years ago

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C. less painful parting with cash

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Read 2 more answers

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Current ratio is a comparison of current assets to current liabilities, calculated by dividing your current assets by your current liabilities.

The quick ratio compares the total amount of cash + marketable securities + accounts receivable to the amount of current liabilities.

A. Inventory would be a factor in both of these ration (assets). In both of these industries, inventory would be low. You cannot readily stockpile energy and burgers are perishable items.

B. It is true that both of these industries would have low outstanding accounts receivable because people will need their power to survive and fast food places don't offer credit.

C. These two industries deal with cash mainly. Cash doesn't have to be physical currency, but accounts that can easily be paid.

D. Low current and quick ratios are actually signs of good management not poor management.

All of the above are correct EXCEPT answer D.

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Answer:neither does

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3 years ago