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Mnenie [13.5K]
3 years ago
8

Starbucks has $1 billion to invest. It can either purchase a rival coffee shop chain or build additional Starbucks shops. If Sta

rbucks chooses to purchase the rival chain, what does that say about the relative profitability of purchasing and owning the rival's existing shops versus building additional Starbucks shops? Explain.
Business
1 answer:
sergey [27]3 years ago
7 0

Answer:

Investment decisions are made on the margin. This means that Starbucks' executives calculated that purchasing the rival coffee chain would yield a higher marginal return for every dollar invested than opening more of their own Starbucks shops. The investment that yields the highest marginal return per dollar investment will be made.

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aleksandr82 [10.1K]

Answer:

a. $2953.9

b. $2813.24

Explanation:

To calculate the future value of an annuity paid at the beginning of the period, you have:

VF = A\left[\frac{(1+i)^{n+1} - (1+i)}{i}\right] = 100\left[\frac{(1.05)^{19} - (1.05)}{0.05}\right] = 2953.9

To calculate the future value of an annuity paid at the end of the period, you have:

VF = A\left[\frac{(1+i)^{n} - 1)}{i}\right] = 100\left[\frac{(1.05)^{18} - 1)}{0.05}\right] = 2813.24

Mr. Knox will have $2953.9 at the end of the 18 years, if he pays $100 at the beginning of each year. On teh other hand, Mr Knox will have $2813.24 at the end of the 18 years, if he pays $100 at the end of each year.

8 0
4 years ago
"Noise" (in the traditional communication process) refers to: A. any distractions that reduce the effectiveness of the communica
erik [133]

Answer:

A. any distractions that reduce the effectiveness of the communication process

Explanation:

Noise is the disturbance occurs between the sender and the receiver or the sender and the audience through which the distractions of the persons could occur  

With the presence of the noise, it is very difficult to communicate with someone as there is a chance of miscommunications that reflects the reduction in the effectiveness of the communication process. It can be in terms of the sound of the machine, a mental disturbance, etc

6 0
3 years ago
You have an idea for a company that sources fruits from local farms and makes fresh juices on a daily basis. You want to start a
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Explanation:

This issue is related to the VRIO model, which is an analytical technique to help a company evaluate its organizational resources and make them effective and competitive in the market. The acronym VRIO stands for Value, Rarity, Imitability and Organization, which together form the necessary points for business improvement.

Analyzing the question, it is possible to see that the company focused on issues related to value, rarity and organization, so the question that should be asked to achieve a sustainable advantage is the question related to imitability, which could be: It is difficult to imitate the product at the cost of the resource or capacity?

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3 years ago
An economic model: Group of answer choices A. applies economic theory to understand real-world events. B. is so abstract that it
Drupady [299]

Answer:

A. applies economic theory to understand real-world events.

Explanation:

An economic model is a simplified version of reality that allows us to understand and predict economic phenomena.

characteristics of economic models are ;

They capture the fcomplexity of a phenomenon

They are able to make powerful predictions they are simple to understand

An example of an economic model is the production possibility frontier (PPF) . The PPF is a curve that shows the two combinations of goods that can be produced given the resources of an economy

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3 years ago
Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:
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Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.

This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.

Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.

Learn more here:

brainly.com/question/3520708

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3 years ago
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