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2 years ago

What is the difference between Absolute Advantage and Compartive Advantage?

Business

1 answer:

Kitty [74]2 years ago

3 0

Answer: See explanation

Explanation:

Absolute advantage simply means when an economic entity such as individuals or the firms can produce a particular good more efficiently than others who produce similar good. In this case, a larger quantity is produced when compared to others.

Comparative advantage is when an economic agent can actually produce goods at an opportunity cost that's lower than the opportunity cost of its competitors. Due to this, such economic agent can sell its good at a cheaper price than others and therefore make more revenue.

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David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The company wants to ma

spayn [35]

Answer:

If the company follows the residual dividend policy, it is $50,000 in dividends.

Explanation:

Dividend is calculated by using the formula:

Dividends = Net Income - Equity requirement

where, Equity requirement = Capital budget (% Equity)

= 500,000(70%) = $350,000

∴ Dividends = 400,000 - 350,000

= $50,000

7 0

3 years ago

A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a cus

zaharov [31]

Answer: Differentiation strategy

Explanation:

Differentiation strategy is a strategy that differentiate a product or service, from other identical products that are offered by competitors in the market. Differentiation is development of a good or service, which is unique for customers, in terms of features, product design, quality, brand image, or customer service.

Differentiation strategy is one of the three Porter’s Generic Strategy. In this strategy, firms pick one or more dimensions that are considered to be vital by the consumers thereby creating a unique image in the market.

The use of mobile banking application will ease the traditional method of banking and makes the bank standout.

4 0

3 years ago

You are the marketing manager for Oxymoron Detergent and have been tasked with introducing this product into Argentina. What six

Slav-nsk [51]

Answer:

Following are the solution to this question:

Explanation:

Before choosing the distribution platform for Oxymoron Detergent, I would also like to take account, as sales director:

product:

They need to have a longer, and more diverse network, which includes a specialized sales and service talent for washing powder, that's also sustainable but streamlined.

Its next factor is demand, that both commercial market where distributors are relevant and broad regions and we need networks will be necessary. It is the instance to the Consumer, in which the Dealer research can also determine the decision of networks supply data regarding the number, form, place, buying habits of customers and sellers.

To consider, that middlemen, that will provide maximum cooperation for marketing products or who gives the highest priority to the canal that generates the maximum overall sales at lower costs, as well as the fourth factor is a business where the size of the company determines the market size, the size, as well as its ability to cooperate with intermediaries.

Provided because we're a big company, the stream will be shorter. The product range of the company influences its distribution pattern. The longer a line is, the shorter the stream will be. With regards to the marketing environment, it is a great time for both the economy. We can offer a broader range of alternative channels. Mostly on the competitive front, competitors must be examined and the modes of channels they use, as well as the delivery of the goods, may share equal channels.

7 0

3 years ago

Yo wt.f is daisy . . . . . . . . . Daisy me rollinngg

notka56 [123]

Answer:

cool

Explanation:

6 0

3 years ago

Read 2 more answers

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

monitta

Answer:

See the journal entries below.

Explanation:

Each of these transactions can be recorded in the journal as follows:

Date Particulars Debit ($) Credit ($)

Mar 1 Cash (50,000 * $47) 2,350,000

Common stock 50,000

Additional Paid-in Capital 2,300,000

(To record Issue of 50,000 additional shares for $47 per share.)

May 10 Treasury stock (4,500 * $50) 225,000

Cash 225,000

(To record Purchase of 4,500 shares of treasury stock)

Jun 1 Dividend (w.1) 181,875

Dividend payable 181,875

(Record dividend declared.)

Jul 1 Dividend payable 181,875

Cash 181,875

(Record dividend paid.)

Oct 21 Cash (2,250 * $55) 123,750

Treasury stock (2,250 * $50) 112,500

Additional Paid-in Capital 11,250

(To record resale of shares of treasury stock.)

Working:

w.1. Dividend = Dividend per share * (Shares of common stock outstanding as of the beginning of 2018 + Additional shares issued on March 1 - Shares of treasury stock purchased on May 10) = $1.25 * (100,000 + 50,000 - 4,500) = $181,875

4 0

2 years ago