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Brut [27]
3 years ago
12

How is a cost-leader protected from threats from powerful suppliers? It is able to create a significant difference between perce

ived value and current market prices. It is more able to absorb price increases through generating higher profit margins. It is able to create a significant difference between actual value and future market prices. It is more able to absorb price increases through accepting lower profit margins.
Business
1 answer:
puteri [66]3 years ago
5 0

Answer:

Option B (By embracing lower operating costs it's much more likely to handle price rises) is the correct choice.

Explanation:

  • Cost management or leadership seems to be an organizational practice introduced by Michael Porter. This helps build organizational competitive benefits. Price leadership relates to supplying the market with the cheapest operating costs, which varies from the pricing strategy.
  • Sometimes it is driven by performance, size, complexity, reach, infrastructure as well as the perspective of the organization.

Some other options given should not be concerning the condition in question. And the correct response would be alternative B.

You might be interested in
Judy's Boutique just paid an annual dividend of $3.31 on its common stock. The firm increases its dividend by 3.75 percent annua
Elina [12.6K]

Answer:

Cost of equity = 11.87%

Explanation:

Cost of equity is defined as the amount that a business pays to its equity investors or shareholders as compensation for the risk of finding the business.

Usually businesses may not have enough capital to run their operations properly in meeting organisational goals. So they seek for funding from investors, and these investors are compensated for giving the business capital.

The formula for cost of equity is

Cost of equity={ (Dividend * Growth rate) ÷ Current stock price} + percentage increase in dividend)

Cost of equity={ (3.31 * 1.0375) ÷ 42.28} + 0.0375)

Cost of equity= (3.434 ÷ 42.28) + 0.0375 = 0.1187

Cost of equity = 11.87%

8 0
3 years ago
Read 2 more answers
If you want to start a fire using sunlight, which kind of mirror would be most efficient
telo118 [61]
A concave mirror because a concave mirror can focus light rays to a point
3 0
3 years ago
__8. A local government has a limited
galina1969 [7]

Answer:

Benefits enjoyed by not having trash in unused building and vacant plots

Explanation:

Opportunity cost is the foregone benefit by deciding in favor of one item over the others. It is the value of the forfeited option. Opportunity cost is quantified as the cost of the next best alternative.

The local government has two options; to support local businesses or two remove trash from buildings. It has opted to support local businesses. Removing trash is the foregone benefit. The joy of having trash-free buildings and plots is the forfeited advantage. The value of a clean surrounding or the benefits derived by not having trash in the neighborhood is the opportunity cost.

3 0
3 years ago
A competitive strategy of striving to be the low-cost provider is particularly attractive when a. buyers are not price sensitive
PilotLPTM [1.2K]

Answer:

d. price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few, large volume buyers.

Explanation:

Michael Porter specified 4 generic strategies for gaining competitive advantage, which are namely,

1. Cost Focus

2. Differentiation Focus

3. Cost Leadership

4. Differentiation

Cost leadership refers to charging lowest price and attaining cost advantage in the industry.

Differentiation refers to designing products with unique attributes.

Striving to be low cost provider would be most attractive when the buyers have low switching costs i.e it is easier and cheap to switch between products and wherein buyers are large and exercise considerable bargaining power.

Thus, the correct option is (d). price competition is especially vigorous, buyers have low switching costs, and the majority of industry sales are made to a few, large volume buyers.

6 0
3 years ago
The bank forecloses on Lisa's apartment complex. The property had been pledged as security on a nonrecourse mortgage, whose prin
skelet666 [1.2K]

Answer: $400,000

Explanation:

Based on the information given in the question, Lisa's recognized gain or loss will be calculated as the difference between the amount that's realized and the adjusted basis. This will be:

Recognized gain will be:

= Amount realized - Adjusted basis

= $900,000 - $500,000

= $400,000

There's a recognized gain of $400,000

6 0
3 years ago
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