The fundamental relationship of economic value creation to competitive advantage is that an increase in one will leads to another. Due to that, we can say that other competitors’ economic value creation will decrease. These changes will lead to a relative shift in cost structure and a shift in consumers’ behavior to pay more.
Competitive markets deal with homogenous products and with too many producers and due to that no one producer can create a monopoly. As in monopoly, the market deals with non-homogenous products with single or few producers.
Further descriptions are below here about the relationship between value creation and competitive advantages:
- Fundamental in strategic management
- Provides the foundation upon which to formulate a firm's competitive strategy for cost leadership or differentiation
- A firm has a competitive advantage when it creates more economic value than rival firms.
For more content like this visit:
brainly.com/question/25010811
#SPJ4
Answer:
QuitClaim Deed
Explanation:
The correct answer is QuitClaim Deed. When in a contract only the interest of is conveyed, it provides QuitClaim Deed for the person to contract to whom only the his/her interest was conveyed. In the given question Bosch is seemed to have been conveyed only the interest he had in the property and is therefore entitled to the right of a QuitClaim Deed.
Given:
April 2, 2017 - paid $3,721,000 for 1,525,000 tons of ore deposit
installed machine costing $213,500. 7 year life. No salvage value. will be abandoned when ore deposit is completely mined.
May 1, 2017 - mining begins. 166,200 tons of ore mined and sold.
At the end of the year, depletion of the ore deposit and depreciation of the machinery must be recorded.
3,721,000 / 1,525,000 = 2.44 depletion rate per ton
2.44 * 166,200 = 405,528
entry on Dec. 31: Debit Credit
Depletion expense - Mineral deposit 405,528
Accumulated depletion - Mineral deposit 405,528
Depreciation of machine is not computed based on straight line method. It is computed based on the ratio of the ore deposit mined and sold to the total ore deposits.
(166,200 / 1,525,000) * 213,500 = 23,268
entry on Dec. 31 Debit Credit
Depreciation expense - Machinery 23,268
Accumulated depreciation - Machinery 23,268