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3 years ago

What is the economic process of withdrawing investments from low profit sectors and investing in new activities?

Business

1 answer:

frozen [14]3 years ago

8 0

Answer:

Creative destruction.

Explanation:

In 1942, the term creative destruction was first to be used by the notable Austrian economist known as Schumpeter Joseph.

Creative destruction is the economic process of withdrawing investments from low profit sectors and investing in new activities.

This ultimately implies that, creative destruction is a concerted effort towards the deliberate destruction or dismantling of long standing products, processes, practices, procedures or services in order to give room for innovative ideas and an improved technique for the production (manufacturing) of goods and services. Thus, the old technology or methods of production are dismantled so as to pave way for new technologies, procedures, goods and services.

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Exercise 14-04 a-c Bonita Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,70

PilotLPTM [1.2K]

Answer:

Factory Overheads $182,420

Manufacturing overhead $ 396,820

Product costs $396,820

Period costs $ 75,720

Explanation:

Bonita Company

Direct materials used 141,700

Direct labor $72,700

Factory Overheads $182,420

Factory utilities $16,000

Depreciation on factory equipment 14,250

Property taxes on factory building 2,600

Indirect factory labor 53,500

Indirect materials 85,000

Factory repairs 2,970

Factory manager’s salary 8,100

Manufacturing overhead $ 396,820

Product costs $396,820

Advertising 15,600

Office supplies used 3,420

Sales salaries 50,000

Depreciation on delivery trucks 4,900

Repairs to office equipment 1,800

Period costs $ 75,720

Manufacturing Costs are costs used in the manufacture of products.

Product Costs = Direct materials + Direct Labor + Manufacturing Overheads

Period Costs include Marketing and Selling Expenses , Administrative Expenses.

5 0

3 years ago

Extrinsically motivated behavior is that which is performed out of a desire to work for the welfare of society.a. Trueb. False

ipn [44]

Answer: false

Explanation: Extrinsic motivation relates to actions motivated by incentives from the outside, such as wealth, popularity, promotions, and recognition. This form of motivation comes from the outside of the person, as contrasted to the internal motivation that comes from within the person.

Extrinsic motivation is commonly defined as the inclination to participate in activities to receive some kind of perceived outward benefit. It is worth noting that either physical or mental in essence can be these incentives. Thus, from the above we can conclude that the above statement is false.

6 0

3 years ago

Who are decision makers within organizations? (Check all that apply.)

dedylja [7]

Answer: Consultants

Explanation: They give their ideas and the company works according to that. If the company managers take decisions that suits them the employees and owners will adhere but the consultants might turn it down which affects the company immensely.

6 0

3 years ago

Eric and Deborah are partners at a law firm. They are trying to determine which of them has a comparative advantage in typing th

Sergio [31]

Answer:

Eric's opportunity cost of typing pages is <u>$25</u> per page.

Based on all of these facts, <u>Deborah</u> has a comparative advantage in typing pages.

Explanation:

Eric's opportunity cost of typing is $500 / 20 pages = $25 per page.

Since's Deborah's opportunity cost of typing pages is 20% less than Eric's, then she has a comparative advantage in typing pages.

The person, business or country with the lowest opportunity cost has the comparative advantage in producing that good.

6 0

3 years ago

Hutton Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary

Dmitrij [34]

Answer: (B) Manufacturer agent

Explanation:

A manufacturer agent is refers to the independent sales agent in an organization.

The responsibility of a manufacturer agent is that it is an intermediary an organization as it helps in the product distribution process.

It mainly control all the promotional and the proving decision of the products in an organization and also represent organization as the seller. According to the given question, the company should hire the manufacturer agent.

Therefore, Option (B) is correct.

3 0

3 years ago