Answer:
Quantitatively, Harlan Bikes is justified in deciding to close the department, but there are other qualitative factors that need to be considered which may result in the company loosing much more that they can save if the department is closed, such as for example a decrease in employee morale, a negative signalling effect to other stakeholders, a drop in sales in related products etc.
Explanation:
A decrease in employee morale can result especially if workers in other departments are no-longer sure about their future in the company, resulting from fears of their departments being closed. This can negatively affect productivity resulting in lower profits in other department.
A negative signalling effect means that other stakeholders such as investors and creditors may start questioning managements ability to profitably run the business, and the company will be perceived as more risky. Cost of debt and cost of equity capital for example, may go up, due to this higher perceived risk, and which may reduce the number of positive net present value projects that the company can undertake due to an increase in cost of capital.
If the company carries related products in other departments, it may also see a drop in sales in those sales, which will effectively reduced the savings that are estimated to be gained from closing the division.
Answer:
- Threat of Substitutes
- Threat of New entrants/ Competitors
Explanation:
This question relates to Porter's five forces.
A patent on a good protects that good from being able to be copied or produced by other companies.
Should a company lose this protection, companies will be allowed to make substitutes to the products without running afoul of the law. The company will therefore face an increased threat from Substitutes.
Other companies will also be able to produce the goods or offer the services now which would mean that new entrants/ competitors can come into the market for that good or service.
In economics, short run is time frame in which the quantities of quantities of some factors of production are fixed; and long run is period of time in which quantities of all the factors of production that can be varied.
<h3>
What is production?</h3>
Production is the process of mixing several inputs, both material (like metal, wood, glass, or polymers) and immaterial (like plans, or information) in order to produce output. A valuable good or service that enhances people's utility will be this output's ideal form. Production theory is the branch of economics that focuses on production; it is closely tied to the consumption theory of the economy. Utilizing the first inputs productively leads directly to the manufacturing process and results. Land, labor, and capital are regarded as the three major production components and are known as primary producer commodities or services. These essential ingredients do not substantially change during the output process or turn into a complete part of the final product.
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Answer:
True
Explanation:
Supply Chain Management is the integrated management of material, information and money flow that enables the customer to reach the right product at the right time, at the right place, at the right price, at the lowest possible cost for the entire supply chain. In other words, creating strategies and business models that will increase customer satisfaction by integrating the basic business processes in the chain. A supply chain is a set of relationships and links that enable the movement of products between suppliers, manufacturers, wholesalers, distributors, retailers and ultimately consumers. It covers all successive rings from the procurement stage of goods and services to production and delivery to the final consumer. In terms of business processes, supply chain; sales process, production, stock management, material supply, distribution, procurement, sales forecasting and customer service.
Consequently, the location is the one of the most important factors of supply chain in the profitability terms. If the company is on the perfect location in the meaning of proximity to customers, or other supply channels it would be great asset for the firm or company. That's why it is pretty important for companies in the global markets to make decisions about the location. Of course, this will optimize the performance of supply chain and make consistent with the firm's or company's competitive strategy.
Answer:
B) $20
Explanation:
Calculation for how much that would be recorded as the 2021 expenditure
Using this formula
Expenditure =Invoiced cost-General fund
Let plug in the formula
Expenditure =$520-$500
Expenditure =$20
Therefore the amount that would be recorded as the 2021 expenditure will be $20
