Answer:
True
Explanation:
This is one of the major reason why companies expands its manufacturing department in countries with greater free trade agreements and with geographical importance. This makes the company more oriented towards controlling transportation costs, import duties and other costs and increasing the benefits arising from the economies of scale.
Answer:
Accepted
Explanation:
In this question, we have to compare the make or buy options which are shown below:
Particulars Make Buy
Direct materials (5,000 units × $1) $5,000
Direct labor (5,000 units × $10) $50,000
Variable manufacturing overhead
(5,000 units × $5) $25,000
Fixed manufacturing overhead $60,000 $110,000 (5,000 units × $22)
Total $140,000 $110,000
Since in buy decision, the cost is minimum. So, the company should accept this offer
Answer:
14%
Explanation:
Capital asset pricing model measure the cost of equity oof a company. it is used to make decision for addition of specific investment in a well diversified portfolio.
Formula for CAPM
Expected return = Risk free rate + beta ( market risk premium )
As per given data
Beta = 1.06
Market risk Premium = 8.5%
Risk free rate = 5%
Cost of equity = 5% + 1.06 ( 8.5% )
Cost of equity = 5% + 9.01%
Cost of equity = 14.01%
Answer:
The answer is C. Electrowhip operates in a market with many competitors.
Explanation:
First, let re-visit to the penetration pricing strategy definition. It is the strategy where price is set low so that firm can gain market share as quick as possible on the selling point of low price.
With the above definition, a. is not relevant, b. is not correct, d. is not correct because if the market is not price-sensitive, the low price will not be the selling point for them to gain market share, e. is not correct as low pricing is not an appropriate strategy to approach elite level.
With C, when there are many competitors in the market and Electrowhip is unable/ unwilling to design a unique product toward a pre-determined sub-section in market share, penetration pricing strategy seems to be the most appropriate strategy for Electrowhip.
Answer:
d) enforceable
Explanation:
A court reviewing the terms of the covenant would likely find that it is enforceable. This is a standard clause found in many contracts and is also known as Non-compete clause. It is standard because a seller that has the experience of running a similar business can sell the business collect the profit from the sale and open create another similar business with little to no capital and quickly outperform their previous business due to the amount of experience that they have. In order to prevent this, many buyers require this clause to be added to the sales contract.
