HS 101 Intro to Economics Quiz

Some industries’ competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson’s in

Lemur [1.5K]

Answer:

rivalry among existing competitors

Explanation:

The Porters' 5 forces is used to analyse the competitiveness among firms in an industry.

Porter's 5 forces include :

Competition in the industry : the higher the number of companies in the industry, the lower the power an individual firm possesses. For example, if an industry increases it price, a consumer can easily shift to the consumption of substitutes
Potential of new entrants into the industry : If there are low barriers to entry in an industry, firms in the industry experience greater competition
Power of suppliers : the higher the number of suppliers in the industry, the higher the bargaining power of firms in the industry and the greater the power they possess
Power of customers : the larger the number of customers, the greater the power firms possess
Threat of substitute product : if there are little or no substitutes for the goods produced by companies, the greater the power the firms possess

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3 years ago

Differentiation business strategies are often associated with premium prices. There are, however, reasons why a firm would NOT w

Natalija [7]

Answer: e. To drive up market share

Explanation:

Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.

However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.

This is why a firm might want to keep prices in line with competitors.

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3 years ago

The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organizati

lana [24]

Answer: 10/40/40/10

Explanation:

Under the 10/40/40/10 rule, 10% of the employees tend to follow ones own attitudes and values, i.e. they believe that their beliefs are more remarkable than those around them. 40% of the employees try to go along with the organization policies. The other 40% might follow their assigned work group whereas the last 10% tend to take advantage of such circumstances just in case if degree of penalization is lower to that of the benefit and also risk of getting caught is less.

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3 years ago

What is the major difference between the unadjusted trial balance and the adjusted trial balance?

11Alexandr11 [23.1K]

Answer:

The correct answer is Option a. The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

Explanation:

The trial balance is a summary of all the account balances for an organization, usually spooled at the end of the year. The possibility exist that transaction that occurred during the year are not captured, accurately or properly recorded in the books. When the company's financial statements are reviewed at the end of the year, adjustments may be made to the unadjusted trial balance to include transactions previously not recorded, accurately or properly captured in the books of accounts.

The inclusion of these adjustments results in the adjusted trial balance.

Hence Option a which states that the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts is the right option.

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3 years ago

Read 2 more answers

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The

lubasha [3.4K]

Answer:

Discounted payback period = 1.89 years

Explanation:

If Initial cost is $5,200

Year Cash flow Present value Present value Discounted

at 11% Cumulative cash flow

0 -5,200 1 -5,200 -5,200

1 2,800 0.9009 2,523 -2,677

2 3,700 0.811 3,003 326

3 5,100 0.73126 3,729 4,055

4 4,300 0.6587 2,833 6,887

Discounted payback period = 1 + (2,667/3003)

=1.89 years

Working

PV= (1+i)^-n

i= 11%, n= respective years 0,1,2,3,4

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3 years ago