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2 years ago

Which among the forces in the macroeconomics has the most impact on a company? why?

Business

1 answer:

Viefleur [7K]2 years ago

4 0

Answer:

Gross Domestic Product

Explanation:

Gross Domestic Product or GDP is the most important macroeconomic variable because it measures the amount of goods and services that are produced within an economy in a given year. In other words, GDP is one of the most accurate measures of economic activity that economists have found so far.

GDP impacts companies because they depend on external market forces to stay afloat. If GDP falls one year, this means that economic activity declined, and companies are likely to feel the effects of it in the form of lower sales, lower revenues, less profits, less hiring, more firing, etc.

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Why is there an inherent conflict between planning and control uses of budgets?

IrinaVladis [17]

Answer:

The main conflict that results between planning and control use of budgets is that managers might place their own personal interests before the interests of the company. This might result in budgets that are easily achievable (resulting in bonuses) or shifting income from one period to another in order to achieve certain budgets that will result in bonuses.

I will use a real life example that happened to me to explain this. I worked as a B2B sales representative for a large corporation (we were only 2 B2B salespeople + 1 manager) and when sales were slowing down, upper management would set up bonuses for achieving certain sales goals. The problem was that intentionally certain large sales that required management's approval were delayed and total sales would fall. Then suddenly the bonus show sup and all the large sales were approved and in two weeks the sales goals were achieved. Since B2B sales are not about selling to a lot of customers, but instead selling to the right customers a lot of products, a couple of delayed big sales made a huge difference and a 1% bonus meant changing your old car for a new one.

3 0

3 years ago

A trader wants to gain a profit by expecting a significant move in either direction of the underlying stock. Which strategy best

alexira [117]

The best strategy for this trader, who wants to profit from either direction of the underlying stock, is A. Long Put and C. Short Call.

In securities trading, a call option gives the trader the right to purchase underlying security without any obligation. On the other hand, a put option grants the trader the right to sell the underlying security without any obligation.

Thus, the trader will profit by using options A and C.

Learn more: brainly.com/question/24767538

3 0

3 years ago

A company looking to expand internationally with little risk would choose?

leva [86]

Answer:

Licensing
Franchising

Explanation:

There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.

With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.

Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.

Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.

3 0

3 years ago

Money market refers to:

Ivanshal [37]

Answer:

Dealing in debt of less than one year.

Used by governments / corporations to keep their cash flow coming in.

Explanation:

3 0

3 years ago

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,

Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

return:

In this case, it will be the cost saving for the new machine: 161,000

investment

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new = 444,000

Then, proceed to calculate:

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0

2 years ago