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Reil [10]
2 years ago
11

A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to

decide how best to serve the European Union. Its choices are given below. The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm's only options, which one would you advise it to choose? Why?
a. Manufacture the product at home and let foreign sales agents handle marketing.
b. Manufacture the product at home and set up a wholly owned subsidiary in Europe to handle marketing.
Business
1 answer:
nasty-shy [4]2 years ago
8 0

Answer:

Correct Answer:

a. Manufacture the product at home and let foreign sales agents handle marketing.

Explanation:

For the small Canadian company, manufacturing the product at home (Canada) would afford them the opportunity to protect their new medical product from piracy. Also, they would be able to receive tax incentives from their government as well file for patent of their new innovation.

<em>The foreign agent would strictly be focused on the marketing of the finished product without having access to the detailed information of the product.</em>

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Growers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B
77julia77 [94]

Answer:

Grower Mart

Explanation:

("FOB shipping point" or "FOB origin")is a term that stands for from the point of origin.  This means that the buyer incur any risk and takes delivery of  the goods once the seller ships the goods.  The supplier records it as a sale at the point of departure from its shipping dock. meaning that the purchaser pays the shipping cost from the factory or warehouse and gains ownership of the goods as soon as it leaves its point of origin.

When the term "F.O.B. Hilltop Farms" it means it is from the point of origin

6 0
3 years ago
You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid
Ivan

Answer:

$28.57

Explanation:

Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.

Therefore the Dividend that is to be paid next year will be:

$2Growth rates

5 %Rates of return

12% Return on Investment

Formular for the calculation of current price of the stock = D1/(r-g)

Where:

D1=2%

r=12%

g=6%

Hence:

2/ (0.12-0.05)= $ 33.33

=2/0.07

=$28.57

Therefore the amount I should be prepared to pay for the stock today will be $28.57

4 0
2 years ago
The gross earnings of the factory workers for Larkin Company during the month of January are $91,000. The employer's payroll tax
cestrela7 [59]

Answer:

Explanation:

The journal entry is shown below:

(a) Factory Labor/Expenses A/c Dr $103,800

        To Factory wages payable               $91,000

         To Employer payroll taxes payable $7,700

         To Fringe benefits payable              $5,100

(Being labor expenses are recorded)

(b) Direct labor A/c Dr   $87192 ($103,800 × 84%)

    Indirect labor A/c Dr $16,608 ($103,800 × 16%)

          To Factory Labor                     $103,800

(Being factor labor is assigned)

7 0
3 years ago
In ethics, our conscience is what tells us whether something is ______.
mrs_skeptik [129]
Conscience is the inner feeling which tell us what is right or wrong. It controls our actions, thoughts and behavior. So the answer is: In ethics, our conscience is what tells us whether something is <span>a. Wrong or right</span>.
8 0
3 years ago
Read 2 more answers
You have written a call option on Walmart common stock. The option has an exercise price of $89, and Walmart’s stock currently t
Alexandra [31]

Answer:

A. Intrinsic value is 0. Time value is 1.35.

B. 1.35

C. -4.65

Explanation:

7 0
2 years ago
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