Answer:
The companies create a global web of value creation activities.
Explanation:
When the companies with the motive to maximize revenue or minimize cost disperse their operation across the globe they create a chain or web of value creation activities globally.
Multinational companies take advantage of location economies by dispersing their activities. When a firm operates in foreign countries they hire inputs for their work thus paying for them, in this way they create a web of activities boosting the economy of that place.
Answer:
The correct answer is letter "A": We respond to marginal benefits and marginal costs.
Explanation:
Rational Choice Theory assumes an individual will always make prudent and optimal decisions that yield the most benefits. It is the basis of most mainstream economic theories. The rational choice theory considers the marginal benefit compared to the marginal cost of individuals' decisions. It could prevent people from taking an option without analyzing what is most beneficial for them.
Answer: Embed company culture
Explanation: Company culture refers to the values and beliefs of an organisation that runs at every level of the operations. Every employee of the organisation have to work by following that company culture.
In the given case, Greg is trying to make a communication channel in the organisation so that every employee can get a sense of the company culture that runs in the workplace.
Hence we can conclude that he is trying to embed the company culture.
Answer:
It might lead to over-optimistic projections
Explanation:
In simple words, the problem with using profitability index as the index criteria lies with the procedure of estimating it. In order to consider the business situation, the organisational finance group requires to settle with the corporation supervisors.
Leadership may be too enthusiastic about their assignment, so forecasts for cash flow may be too substantial. Consequently, in predicting the profitability index, there may be an uptrend prejudice.
Answer: Cost of keeping old machine is $469,000
Cost of Purchasing New Machine is $271,000
Explanation:
Keeping the old machine.
When calculating the cost of keeping the machine you use the disposal value.
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = ( 88,000 - 15,000) + ( 36,000 * 11 years)
Cost = 73,000 + 396,000
Cost = $469,000
Cost of keeping old machine is $469,000.
Cost of New machine
Cost = (Disposal Value - Residual Value) + Total Operating Costs for remaining lifetime
Cost = (239,000 - 76,000) + (12,000 * 9)
Cost = 163,000 + 108,000
Cost = $271,000
Cost if New machine purchased,
= $271,000
