Answer:
B.
Explanation:
Vertical integration is a merger of companies at different stages of production and/or distribution in the same industry. A strategy that many companies use to gain control over their industry´s value chain. This strategy is one of the major considerations when developing corporate level strategy.
The important question in corporate strategy is, whether the company should participate in one activity (one industry) or many activities (many industries) along the industry value chain.
For example, the company has to decide if it only manufactures its products or would engage in retailing and after sales services as well.
Answer:
c) $18,986
Explanation:
The computation of the payment of principal is shown below:
= Annual payment - (Balance of Principal × interest rate)
= $48,986 - ($250,000 × 12%)
= $48,986 - $30,000
= $18,986
We do not consider the time period. Hence, we ignored it as it is not relevant for the computation part.
We simply multiply the principal balance with the interest rate and then deduct it from the annual payment.
Answer:
Differential cost of producing Product C = $0
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>
$
Sales revenue after the split off point (Product C) 58
Sales revenue at the split-off point (Product B <u> 33</u>
Additional sales revenue per unit 25
Further processing cost <u> (25)</u>
Differential cost of Product C <u> 0</u>
Differential cost of producing Product C = $0
<em>
Note that the cost incurred up until the split off point was not included because it is Irrelevant to the decision to process further. It has already been incurred , hence it is a sunk cost</em>
Answer:
This is widely considered to be a benefit of starting your own business and is also a factor for motivation
An example of the information effect is when bmw gained in-depth information about visitors to a popular chinese social media site, and used that information to determine which visitors were likely to be luxury car buyers and targeted advertising toward them.
The information effect can change a persons perception or idea in a good or bad way depending on the information that is shared with them. They are able to tailor information to their audience and can build up or tear down expectations depending on their overall goal of the advertisements. A good advertiser knows their audience and tailors advertisements to fit their wants and needs.
