Answer:
A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
Explanation:
Real option analysis
This is simply described as a form of an analysis of capital budgeting projects. It is often used by managers so as to influence the size and riskiness of a project's cash flows. And this can be done only by taking different actions or at the end of the project's life.
It uses the usual NPV capital budgeting analysis along with an analysis of opportunities as a result of manager's responses to changing circumstances that can change a project's outcome.
Examples of Real Options
1. Investment timing
2. Abandonment/shutdown
3. Flexibility
4. Growth/expansion
Flexibility Option
This type of re option simply allows operations to be changed based on how conditions change during a project's life. It is said to exists when it is useful spending money today, which therefore helps one to maintain flexibility down the line. That is, either inputs or outputs (or both) can be altered.
Answer:
licensing
Explanation:
Based on the scenario being described within the question it can be said that the entry method that Cho seems to be pursuing is known as licensing. This is a market entry strategy in which a company grants permission to another company in a different country in order for it to use the granting company's intellectual property for a specific period of time.
Answer:
Which potential biological food safety hazard does smoking in food storage and prep areas cause?
Biological food safety hazards are enormous, food contamination on storage food materials can lead to food borne diseases as a result of contamination caused by micro-organisms ranges from bacteria, parasites among others.
Smoking could leave residue on food materials on storage, hence; increases the moisture content which enhances micro-organism growth and enables the food spoilage.
Explanation:
Answer:
should be long and roundabout to cushion the negative aspects
if you are delivering bad news if it is directly affecting them they would most likely like to know why and if they can help this issue
Explanation:
mrk me brainliest please.
Answer:
$11,250
Explanation:
The amount of insurance expense that would be reported on the income statement for the year ended December 31, 2014
1. Since a four year policy was purchased for $60,000 it will have to be amortized yearly to get the annual figure for insurance expense
2. The amount is also apportioned to take note of the number of months that elapsed in the first year.
Therefore if the four-year insurance policy was purchased on March 31st (Since the month is omitted in the question) then the insurance expense will be for the remaining 9 months in 2014.
Hence insurance expense will be [9 months (April to Dec 2014) / 12 months in a year] x (Insurance amount / 4 years) = $11,250
