As a barrier to new entry, absolute cost advantages can be based on: <u>Control over low-cost inputs required for production, be they labor, materials, equipment, or management skills.</u>
<h3>
What is a Barrier to Entry ?</h3>
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur.
Barriers to entry, in economics, obstacles that make it difficult for a firm to enter a given market. They may arise naturally because of the characteristics of the market, or they may be artificially imposed by firms already operating in the market or by the government.
Barrier to entry is a high cost or other type of barrier that prevents a business startup from entering a market and competing with other businesses. Barriers to entry can include government regulations, the need for licenses, and having to compete with a large corporation as a small business startup.
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Answer:
1- experiential
Explanation:
Based on the scenario being described it can be said that the observational approach Best Western used is called experiential research. This is a kind of research in which the subjects contribute to the content of the research as well as the creative thinking that helps the researchers draw conclusions from the content. Which is what the subjects are technically doing by filming their entire vacation experience for the research.
Answer:
Mauricio invested $30,000 in Pizza Aroma in exchange for its stock. Pizza Aroma now has <u>$30,000 IN COMMON STOCK</u> under shareholders' equity.
Explanation:
Mauricio invested a certain amount of money in exchange for common stock of a small corporation, Pizza Aroma. Corporations are legal entities that operate separately from its owners or stockholders.
Usually a small business like Pizza Aroma would be a sole proprietorship or a partnership, at least at the beginning when it just started to operate. But the main advantage of a corporation is that it limits owners liability to the amount invested in stocks, therefore if the business fails, the most Mauricio can lose is $30,000. While sole proprietors and partners have unlimited liability, which means that they are legal liable for all the debts and obligations of the business. The main disadvantage of corporations is that they are double taxed, that means that the corporation pays corporate taxes and the owners pay income taxes also.
<h2>Stop loss , Stop buy</h2>
Explanation:
Let us understand the term stop-loss order:
· This is an “order sited” with the “broker to buy or sell” once the stock reaches a certain amount or price.
· This is “designed to limit” an investor's loss on a security point.
· Fixing a stop-loss order for “20% below the price” the margin which you have bought the stock will “limit your loss to 20%”
Let us understand the term buy stop order:
It guides a “broker to purchase a security” when it reaches a strike price that is higher than the “current spot price”.
Answer:
$105,000
Explanation:
The total sales are 3,500,000, and the current market share is 7%.
3,500,000 * 0.07 = $245,000
The goal is to increase the market share to 10%
3,500,000* 0.10 = $350,000
The difference between original sales and the target sale is
245,000 – 350,000 = $105,000
An increase of $105,000 is required to achieve a market share of 10%
