A media company has a high market share in the cassette tape market. The cassette tape market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix.

Answers

Answer 1

Answer:

Cash Cows

Explanation:

The Boston Consultancy Group devised a matrix representation for evaluating businesses as per their respective market share. The matrix depicts a portfolio of four possibilities for a strategic business unit.

The matrix is known for it's cows-dogs metaphor. It measures market growth rate on vertical axis and relative market share on horizontal axis.

It is used for allocating resources to a strategic business unit as per feasibility. The four possibilities defined are, stars, cash cows, question mark and dogs.

In the given question, the media company has relative high market share in low growth industry. This fits into the grid of "cash cows". These require little timely investment.

Answer 2

Final answer:

The correct classification for a business with high market share in a low growth market according to the BCG matrix is 'Cash Cow'. This category is characterized by generating significant cash flow more than what is invested into the business, allowing for investment in other areas.

Explanation:

The question relates to a concept within the BCG growth-market share matrix, specifically addressing a scenario where a company holds a high market share in a market with low growth potential. The correct category for such a business is 'Dog'. However, based on the characteristics described (high market share in a low growth market), the correct answer is 'Cash Cow'. Cash Cows are segments where a company has a high market share in a slow-growing industry. These divisions generate more cash than they consume, allowing a company to invest in other areas of business. The BCG matrix helps businesses allocate resources efficiently across different segments by categorizing them into four types: Stars, Question Marks, Cash Cows, and Dogs, based on market growth and market share.

Considering other market dynamics like network effects and winner-take-all contests, examples include the dominance of VHS over Betamax in the videotape market or Microsoft's Windows in the personal computer operating systems. These examples illustrate how a business can leverage its market position to secure almost monopolistic control, similar to how a Cash Cow operates by relying on a well-established market share in a stagnant growth environment.


Related Questions

Hailey, Inc., has sales of $19,740, costs of $9,290, depreciation expense of $1,960, and interest expense of $1,450. Assume the tax rate is 40 percent. What is the operating cash flow, or OCF?

Answers

Answer:

$7,634

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense  

where,  

EBIT = Sales - cost of good sold - depreciation expense  

= $19,740 - $9,290 - $1,960

= $8,490

The income tax expense equal to

= (Sales - cost of good sold - depreciation expense  - interest expense) × tax rate

= ($19,740 - $9,290 - $1,960 - $1,450) × 40%

= $2,816

So, the operating cash flow is

= $8,490 + $1,960 - $2,816

= $7,634

The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive.

One means by which factor markets may fail to be competitive is if there is imperfect information. Which of the following are ways in which firms seek to overcome information problems? Select all that apply.

a) Only hiring workers who have earned good grades in college.

b) Always hiring from the outside to avoid being accused of discrimination.

c) Promoting workers from within the company who have shown themselves to be productive, rather than hiring from outside.

Answers

Answer:

a) Only hiring workers who have earned good grades in college.

Explanation:

The Marginal Productivity theory defines as change in revenue of a business resulting due to employment of one additional labor.

This theory has many assumptions that perfect  competition prevails in the market. All workers have same abilities and skills. Productivity of labors can be measured accurately. Every unit is homogeneous etc.

To overcome this information problem a firm should hire only workers who have earn good grades in college. It assumes that these workers will have greater skills and will contribute in revenue contribution to the organization.

You’ve recently learned that the company where you work is being sold for $300,000. The company’s income statement indicates current profits of $11,000, which have yet to be paid out as dividends. Assuming the company will remain a "going concern" indefinitely and that the interest rate will remain constant at 9 percent, at what constant rate does the owner believe that profits will grow? nstruction: Enter your response rounded to one decimal place.

Growth rate of: ___ percent.

Answers

Answer:

5%

Explanation:

Data provided in the question:

Present value of the company, PV = $300,000

Current Profits, π₀ = $11,000

Interest rate, i = 9% = 0.09

Now,          

we know,            

[tex]PV = \pi_0(\frac{1+i}{1-g})[/tex]

here,

g is the growth rate        

on rearranging, we get          

g =  [tex]i - \frac{(1+i)\pi_0}{PV}[/tex]

on substituting the respective values, we get

g = [tex]0.09 - \frac{(1+0.09)\times11,000}{300,000}[/tex]

or  

g = 0.05

or

g = 0.05 × 100%

= 5%

Phillips Company acquires all of the outstanding stock of Sylvania Company by issuing 20,000 shares of its own $5 par value stock. The market value of its stock at the date of issuance was $50 a share. Also in conjunction with the acquisition Phillips incurred the following costs: $8,000 in finders fees, $12,000 in legal fees and $10,000 in stock issuance fees. What is the purchase price for this acquisition used to determine whether goodwill is present or not?

Answers

Answer:

purchasing price will be based on par value = $1,00,000

Explanation:

Given data:

number of shares = 20,000

par value of stock = $5

Market value of stock is $50

Finders fees = $8000

legal fees = $12,000

stock issuance fees =$10,000

Paid capital is calculated at par value i.e. 20,000 * $5 = $ 1,00,000

Expenses like finders fees, legal fess and stock issuance fees will not be included in purchasing price. it is considered in miscellaneous expense

Hence purchasing price will be based on par value = $1,00,000

Final answer:

The purchase price for the acquisition is $1,030,000, which includes the fair market value of the stock issued and the costs incurred by Phillips Company.

Explanation:

The purchase price for this acquisition is determined by adding the fair market value of the stock issued and the costs incurred by Phillips Company. The fair market value of the stock issued is calculated by multiplying the number of shares issued (20,000) by the market price per share ($50). Therefore, the fair market value of the stock issued is $1,000,000 (20,000 shares x $50).

In addition to the fair market value of the stock, the costs incurred by Phillips Company are also included in the purchase price. These costs include finders fees ($8,000), legal fees ($12,000), and stock issuance fees ($10,000). Therefore, the total costs incurred by Phillips Company are $30,000 ($8,000 + $12,000 + $10,000).

The purchase price for this acquisition is the sum of the fair market value of the stock issued and the costs incurred by Phillips Company. Therefore, the purchase price is $1,030,000 ($1,000,000 + $30,000).

On January 1, Payson Inc. had a retained earnings balance of $20,000. During the year, Payson reported net income of $30,000 and paid cash dividends of $17,000. Calculate the retained earnings balance at its December 31 year-end.

Answers

Answer:

=$33,000

Explanation:

Retained earnings will be the total income minus the dividend paid. For Payson inc. The retained earning as at 31st Dec 2104 will be

net income - divided paid out

=$30,000-$17,000

=$13,000

Total retained earnings as of 31st Dec will be

$13,000 + $20,000

=$33,000

Final answer:

To calculate the retained earnings balance at its December 31 year-end, add the beginning retained earnings, net income, and subtract cash dividends.

Explanation:

To calculate the retained earnings balance at its December 31 year-end, we need to consider the net income and cash dividends for the year. Retained earnings is the sum of the beginning retained earnings balance, net income, and any adjustments for dividends. In this case, the beginning retained earnings balance is $20,000, net income is $30,000, and cash dividends are $17,000. Therefore, the retained earnings balance at December 31 would be:



Retained Earnings = Beginning Retained Earnings + Net Income - Cash Dividends



Retained Earnings = $20,000 + $30,000 - $17,000 = $33,000

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Economic models are:

a. useless if they are simple.
b. potentially useful in forming economic policy.
c. made generally of wood, plastic, and/or metal.
d. set up and used to precisely mirror reality.

Answers

Answer:

The correct answer is letter "B": potentially useful in forming economic policy.

Explanation:

Economic models are abstractions that try to simplify phenomena of the real world. Economic models are the assumption that economists make to understand the diverse economic events that occur. Those models could be theoretical or mathematical in some cases.  

Economic models can help governments establish economic policies based on facts of the environment and the variables affecting that community.

A computer thesaurus Group of answer choices catches
a. punctuation as well as grammar errors.
b. highlights phrases in passive voice.
c. suggests correct spelling.
d. can help you find just the right word for a given situation.

Answers

Answer: The correct answer is d). Can help you find just the right word for a given situation.

Explanation: A computer thesaurus is a software tool on a computer that suggest words that are similar in meaning (synonyms) based on a given command.

A thesaurus unlike a dictionary that gives meaning of words, suggests choice words based on each given entry.

Codes of conduct are becoming more prevalent in industry are proving to be more meaningful, more comprehensive and easier to implement in terms of the administrative procedures used to enforce them.

a. True
b. False

Answers

Answer:

TRUE

Explanation:

Adopting a code of conduct in the workforce includes enforcing rules and procedures to all employees, and offering the instruction necessary to ensure that they follow the policy.

The code should be put into practice and encouraged by administration to lead the way for workers.

The administrative procedures are more difficult to implant,because they need proper knowledge to use it , where code of conduct need moral and socialistic knowledge.

Pyro Electronics was the only supplier of Torin Auto, and both companies wanted to do more business together. Pyro Electronics worked on its total quality management system and acquired more business, while Torin developed a just-in-time inventory management system to deliver goods timely to Pyro Electronics. Pyro Electronics and Torin have developed a _____.

Answers

Answer:

Strategic Partnership.

Explanation:

Strategic Partnership is a kind of alliance in which two companies agree to help each other by their expertise. This can be formed with one or more business. Here also Pyro Electronics and Torin Auto both Companies agree to do more business together to help each other expand their businesses. Pyro Electronics is a sole supplier of Torin Auto, Pyro has worked on total quality management and Torin has developed just-in-time inventory management which means the goods will be ordered when needed. This reflects that both companies are ready to help each other and expand their business.

Final answer:

Pyro Electronics and Torin Auto have collaborated and created a strategic partnership where both companies improved their systems for mutual benefit.

Explanation:

Pyro Electronics and Torin Auto have developed a Strategic Partnership. This type of collaboration involves two businesses coming together to create a mutually beneficial agreement. This arrangement works towards a common goal, in this case, they wanted to do more business together. Pyro Electronics improved its efficiency by developing its Total Quality Management system, and Torin optimized its inventory management with a Just-In-Time system to ensure timely supply of goods to Pyro Electronics.

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Western Transit Bank has 150 automated teller machines (ATMs) across the country. Customers can use these machines to withdraw money, deposit money in their bank accounts, check their account balance, and transfer money to other accounts. These machines enable Western Transit Bank to carry out some of its operations smoothly.
In the given scenario, the ATMs of Western Transit Bank can be classified as ___________.

Answers

Answer:

In the given scenario, the ATMs of Western Transit Bank can be classified as "capital or financial assets".

Explanation:

Automated teller machines (ATMs) are electronic system for money withdrawal. This system act as capital or financial assets for individuals who saved money in their respective bank accounts, otherwise its just a machine.

Generally people keep only limited cash with themselves due to security or saving purpose. Thus on sudden needs or for regular requirements too it act as asset. This facility has been activated 24*7 for citizens and prevent them from long waiting ques of bank, added with paper work which use to eat huge time of customers, thus it manages their time too.

Final answer:

In the mentioned scenario, the ATMs of Western Transit Bank can be classified as physical distribution channels.

Explanation:

The Automated Teller Machines (ATMs) of Western Transit Bank are considered physical distribution channels as they allow customers to access a variety of banking services. A distribution channel refers to the methods or routes through which a company provides its products or services to customers.

In the context of a bank, ATMs operate as a distribution channel because they allow customers to access banking services such as withdrawing and depositing money, checking their account balances, and transferring money. Essentially, they distribute the bank's services to its customers.

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Coburn (beginning capital, $55,000) and Webb (beginning capital $95,000) are partners. During 2017, the partnership earned net income of $71,000, and Coburn made drawings of $17,000 while Webb made drawings of $25,000. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income.

Answers

Answer:

Given that,

Beginning capital of Coburn = $55,000

Beginning capital of Webb = $95,000

Partnership earned net income = $71,000

Coburn made drawings = $17,000

Webb made drawings = $25,000

Income-sharing ratio = 30:70

Coburn's share in profits = Net income earned × 30%

                                          = $71,000 × 0.3

                                          = $21,300

Webb's share in profits = Net income earned × 30%

                                       = $71,000 × 0.7

                                       = $49,700

Therefore, the journal entry is as follows:

Profit and loss A/c  Dr. $71,000

          To Coburn's capital A/c      $21,300

           To Webb's capital A/c        $49,700

(To record the allocation of net income)

An analysis of the accounts shows the following. 1. The equipment depreciates $248 per month. 2. One-third of the unearned rent was recognized as revenue during the quarter. 3. Interest of $550 is accrued on the notes payable. 4. Supplies on hand total $637. 5. Insurance expires at the rate of $324 per month. Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expenses. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answers

Final answer:

Adjusting entries in this scenario involve calculations related to equipment depreciation, rent revenue recognition, accrued interest on payables, supplies expense recognition, and insurance expense calculation with the intent to reflect the most accurate financial position at the end of a quarter.

Explanation:

The task at hand is to make quarterly adjusting entries from the provided account information. The process involves the calculation of accrued and prepaid expenses, and income. Let's go through each point:

Depreciation Expense: For equipment depreciation, multiply $248 by 3 months to get the quarterly depreciation of $744. So, debit Depreciation Expense $744 and credit Equipment $744.Rent Revenue: One-third of the unearned rent was recognized as revenue during the quarter. Thus, debit Unearned Rent for the determined one-third amount and credit Rent Revenue for the same amount.Interest Payable: Interests accruing on the notes are represented by a debit to Interest Expense $550 and a credit to Interest Payable $550.Supplies Expenses: Supplies on hand will be credited while Supplies Expenses will be debited by the total amount of $637.Insurance Expense: For expired insurance, multiply $324 by 3 for the quarter to get insurance expense of $972. So, debit Insurance Expense $972 and credit Prepaid Insurance $972.

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This field of study has helped us understand differences in fundamental values, attitudes, andbehavior between people in different countries and within different organizations. a. Anthropology b. Corporate strategyc. Political science d. Operations research e. Psycholinguistics

Answers

Answer:

The correct answer is letter "A": Anthropology.

Explanation:

Anthropology is a social science in which the main objective of the study is the individual as a whole. It means, anthropology studies the human being through many focuses offered by disciplines such as natural, social, and science. Anthropology allows us to know men in his society and the culture where he belongs.

Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
Actual Budget
Calamine Capity Calamine Capity
Sales in pounds 3800 lbs. 3980 lbs. 4,400 lbs. 3,300 lbs
Price per pound $3.00 $2.90 $2.00 $3.00
Variable cost per pound 1.00 2.20 1.00 1.50
Contribution margin $2.00 $0.70 $1.00 $1.50
Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.

What is the actual contribution margin for the month?
a. $12,236
b. $9770
c. $9900
d. $10,386

Answers

Answer:

Option D 10,386

Explanation:

The contribution is the amount left from sales after paying the variable cost. In this case we are given with this value so we don't have to calcualte for it.

To get for the contribution margin we will consider the actual values over the budget.

3,800 Calmine pounds x 2 dollar of contribution per pound = 7,600

3,980 Capity pounds x 0.70 dollars per pound = 2,786

Total: 7,600 + 2,786 = 10,386

The actual contribution margin for the month is $10,386

                                                                         Actual

                                                                Calamine     Capity

Sales in pounds                                       3800 lbs    3980 lbs.

Contribution margin per round               $2.00         $0.70

Product contribution margin                 $7,600       $2,786.

The total contribution earned = $7,600 + $2,786

The total contribution earned = $10,386

In conclusion, the Option D is correct because the actual contribution margin for the month is $10,386.

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When a firm produces one unit, the variable cost is $3. When the firm produces two units, the variable cost is $6. What is the marginal cost associated with two units of production? A) $0.5 B) $2 C) $6 D) $3

Answers

Answer:

Option (D) is correct.

Explanation:

Given that,

Variable cost of one unit = $3

Variable cost of two units = $6

Marginal cost refers to the cost of producing an additional unit of an output and it is added to the total cost of production.

Therefore,

Marginal cost:

= Variable cost of two units - Variable cost of one unit

= $6 - $3

= $3

Hence, the marginal cost associated with two units of production is $3.

Assume that you invest $1250 at the end of each of the next 15 years in a mutual fund. You currently have $10,000 in the mutual fund. The annual rate of interest that you expect to earn in this account is 4.35%. The amount in the account at the end of 15 years is

Answers

The amount in the account at the end of 15 years is $24,236.69. Hence, option B is correct.

What is mutual fund?

A mutual fund is a collection of investments that a fund manager properly manages. a trust that invests money it receives from several participants with comparable investing goals in stocks, bonds, money market instruments, and/or other securities.

Money market funds, bond funds, stock funds, and target date funds are the four primary categories that the majority of mutual funds belong to. Each variant has unique characteristics, dangers, and benefits.

Mutual funds are frequently seen as risk-free, secure investments that offer excellent diversification opportunities for investors. A mutual fund might not always be the best option for a market participant in terms of expenses.

Thus, option B is correct.

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Final answer:

The amount in the mutual fund at the end of 15 years, with an initial investment of $10,000 and $1250 invested annually at a 4.35% interest rate, is $45,534.50, calculated by summing the future values of periodic investments and the initial lump sum investment, each compounded appropriately.

Explanation:

The question involves calculating the future value of an investment in a mutual fund over a period of 15 years, considering a series of periodic contributions and an initial lump sum already invested. The calculation must account for the power of compound interest and additional annual investments. To find the amount in the mutual fund at the end of 15 years, we must use the future value formula for an ordinary annuity and combine it with the compounded amount of the initial investment.

Calculating the Future Value of Periodic Investments

To calculate the future value of the $1250 annual investments, we use the formula:

FV = Pmt \[((1 + r)ⁿ - 1) / r]

FV = $1250 \[((1 + 0.0435)¹⁵ - 1) / 0.0435]

FV = $1250 \[((1.0435)¹⁵ - 1) / 0.0435]

FV = $1250 * 21.2436

FV = $26,554.50 from periodic investments

Calculating the Future Value of the Initial Lump Sum

The initial $10,000 investment will grow due to compound interest alone. The future value of this lump sum is calculated using the compound interest formula:

FV = PV (1 + r)ⁿ

FV = $10,000 (1 + 0.0435)¹⁵

FV = $10,000 * 1.8980

FV = $18,980.00 from initial investment

Total Future Value

To find the total amount in the account after 15 years, we add the future values from periodic investments and the initial investment:

Total FV = $26,554.50 + $18,980.00

Total FV = $45,534.50

The amount in the mutual fund at the end of 15 years, with an initial investment of $10,000 and $1250 invested at the end of each year at a 4.35% interest rate, is $45,534.50.

Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.

Answers

Answer:

Product cost refers to the costs incurred to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. Product cost can also be considered the cost of the labor required to deliver a service to a customer.

Examples of product costs are direct materials, direct labor, and allocated factory overhead which are directly attributable to the product.

period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A period cost is more closely associated with the passage of time than with a transnational event. ... Instead, it is typically included within the selling and administrative expenses section of the income statement.

Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities. Period costs are sometimes broken out into additional subcategories for selling activities and administrative activities

At January 1, 2017, Hennein Company had plan assets of $280,000 and a projected benefit obligation of the same amount. During 2017, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Prepare a pension worksheet for Hennein Company for 2017.

Answers

Answer:

The Pension schedule is prepared in the workings as requested.

Explanation:

The question is to Prepare a Pension Worksheet for Hennein Company for 2017

HENNEIN COMPANY

PENSION WORKSHEET FOR 2017

General Journal Entry                                                 Memo Record

Item              Pension        Cash           Pension       Defined          Plan

                     Expenses                         Asset/Liab    Benefit          Assets

                                                                                      Obligation

Jan 1, 2017                                                               280,000 CR  280,000 Dr

Service Cost  27,500 DR                                        27,500 CR

interest Cost  28,000 DR                                        28,000 CR                

Actual return  25,000 CR                                                                25,000 DR

Contributions                      20,000 CR                                           20,000 DR

Benefits                                                                    17,500 DR       17,500 CR

Journal Entry 30,500 DR    20,000 CR 10,500 CR

Dec. 31, 2017                                         10,500 CR  318,000 CR 307,500 DR

Note that the interest cost is as follows

280,000 x 10% = $28,000

Final answer:

The question requires preparation of a pension worksheet for Hennein Company for 2017, including details on their plan assets, projected benefit obligation, service cost, return on assets, contributions, and benefits paid. However, without information on actuarial gains/losses or other changes, a complete worksheet can't be accurately provided.

Explanation:

Pension Worksheet Preparation

The student is asking for assistance in preparing a pension worksheet for Hennein Company for the year 2017. At the beginning of the year, both the plan assets and projected benefit obligation were $280,000. During the year, the service cost amounted to $27,500; the settlement rate used was 10%; the actual and expected return on plan assets was $25,000; contributions made were $20,000, and the benefits paid out totaled $17,500.

A pension worksheet typically tracks the changes in the pension fund over the course of a year and helps to reconcile the plan's funding status. The service cost will increase the projected benefit obligation, while the return on plan assets will increase the value of plan assets. Contributions also increase plan assets, while benefits paid decrease them.

Unfortunately, to answer this question accurately, additional information about actuarial gains or losses, changes in pension estimates, or prior service costs would be necessary. Without this information, a complete pension worksheet cannot be provided.

XYZ Movers, a professional relocation company, has 3-person teams for their moving services. The company asks customers to complete a satisfaction survey regarding their recent move. For an employee's performance appraisal, customer satisfaction surveys are also considered in addition to supervisor and team member ratings.
Which of the following appraisal methods best describes this situation?

A. similar to me error
B. positive halo effect
C. 360-degree performance appraisals
D. behaviorally anchored rating scale

Answers

Answer:

C. 360-degree performance appraisals

Explanation:

360 degree appraisal is also known as multi-rater feedback or multisource assessment. This is an appraisal systbthat uses multiple sources to rate performance. The sources used include customer feedback, subordinates, supervisors, and colleagues.

XYZ movers employs customer feedback, supervisor ratings, and team member ratings to conducts it's 360 degree performance appraisal.

Answer:

C

Explanation:

. 360-degree performance appraisals

The 360 degree performance appraisal system is advanced kind of appraisal which is used by  many organizations to judge the performance of employees using the review of about a range of 7 to 12 people. These people are working with the employee or the employees is rendering services to te people. The appraisal is collected in the form of reviews in terms of competencies of the employee. The employee himself or herself also takes part in this appraisal with the help of self assessment. The 360 degree performance appraisal system is a way to improve the understanding of strength and weaknesses of employee and areas that need development  

Teri takes her new puppy to the veterinarian. After he examines the puppy, the vet tells Teri that her puppy needs a series of shots. Teri agrees to the shots since the veterinarian knows way more about animal health than she does. This is an example of

a. a public good.
b. moral hazard
c. the free-rider problem.
d. adverse selection.
e. asymmetric information.

Answers

Answer:

E. asymmetric information

Explanation:

This is an example of  asymmetric information. As Teri agrees to the shots since the veterinarian knows way more about animal health than she does. Hence, option E is correct.

What is asymmetric information?

A common example of asymmetric information is the used car dealer. Any issues with the car, such as broken electrics, are unknown to the buyer, but the salesperson is aware of them.

Because of this, the customer is willing to pay more money than they otherwise would have, had they been aware of all the shortcomings in the car. Information asymmetry is a discrepancy in the two negotiating parties' comprehension of crucial details and facts.

Due to this imbalance, the side with more knowledge usually has a competitive advantage over the opposition. Adverse selection or moral hazard are both possible outcomes of asymmetric information.

Thus, option E is correct.

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Many companies say that their goal is to provide quality products and services. What actions might you expect from a company that intends quality to be more than a slogan or buzzword?

Answers

Explanation:

Ideal for a company that wants quality to be more than a slogan or slogan, it is necessary to implement actions that lead to quality management.

From the development of the business strategic plan, actions and procedures included in the company's mission, vision and values ​​must be clearly defined to ensure the expected quality principles.

However, it is important to have an effective implementation and analysis to review the plan and resolve possible conflicts during the execution of activities, in order to establish continuous improvement as an organizational culture, which avoids waste, reduces costs, motivates employees, improves the production process and improves business activities in the internal and external environment, to make total quality a basic principle of the organization.

Final answer:

Companies that view quality as more than a slogan would invest in quality control, offer warranties or money-back guarantees, and aim to establish a good reputation to attract repeat customers. These actions demonstrate their commitment to providing high-quality products and services.

Explanation:

A company that treats quality as more than just a buzzword would take several actions to ensure their products and services meet or exceed customer expectations. Firstly, such companies would invest in thorough quality control measures where products are rigorously tested for any flaws before they hit the market.

Secondly, they would offer assurances such as warranties or money-back guarantees which not only convey a promise of quality but also help build consumer trust. This kind of strategy is particularly important for online or mail-order businesses where customers can't physically examine the products before purchasing.

Lastly, they would seek to establish a good reputation, aiming for repeat customers who will recommend the business to others. A good reputation signifies a company's commitment to delivering high-quality products and services, thus allowing the company to even charge a premium for their offerings. For instance, a well-established grocery store can charge a higher price than a temporary stall at a local farmer's market due to its established reputation for quality.

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Zappos employees are "driven" to participate in charitable activities and feel that giving back to the community is something that they "must do." This demonstrates what about Zappos employees?a. Zappos employees follow the specific Zappos code of ethics. b. Zappos employees have morals that match Zappos values and norms. c. Zappos employees operate at the preconventional level of morality. d. Zappos employees focus on the ethical responsibilities of their jobs.

Answers

Answer:

The correct answer is letter "B": Zappos employees have morals that match Zappos values and norms.

Explanation:

In case employees of a company enjoy doing charitable activities and believe it is an obligation to contribute with their surrounding community, the situation implies that those workers have a high sense of social responsibility and moral values. Every company tends to have a code of ethics that outlines the expected behavior the firm expects from workers within the organization but firms also have goals on social responsibility to minimize the impact of their operations in society an if possible to improve it.  

Thus, the moral values of Zappos's employees are likely aligned to the norms the company is looking for in its workers.

The participation of Zappos employees in charitable activities is a reflection of the alignment between their personal morals and the values and norms of Zappos, hence option B is correct.

When Zappos employees are 'driven' to participate in charitable activities and feel that giving back to the community is something that they 'must do,' this demonstrates that Zappos employees have morals that match Zappos values and norms. hence option b.

The company culture at Zappos is built on a corporate culture of caring, addressing the self-actualization needs of its employees, and integrating happiness and motivation into the company's core values. This culture encourages employees to align their personal values with those of the company.

As a result, the charitable activities are not just seen as an ethical responsibility but are integrated into the way Zappos operates, reflecting the employees' intrinsic motivation to give back to the community in alignment with Zappos' values.

The Brown Jug has paid annual dividends of $0.61, $0.64, $0.71, $0.82, and $0.88 per share over the past 5 years, respectively. What is the geometric average dividend growth rate for this period?

Top of Form

a. 8.51 percent
b. 8.97 percent
c. 9.10 percent
d. 9.59 percent
e. 10.21 percent

Answers

Answer:

Option (d) 9.59%

Explanation:

Data provided in the question:

Annual dividends paid by the Brown jug

$0.61, $0.64, $0.71, $0.82, and $0.88 per share over the past 5 years

Now,

Present value = $0.61

Future value = $0.88

Time = 4 years                    [as there is no interest for the year 1]

Now,

Future value = Present value × (1 + r )ⁿ

here,

r is the geometric average dividend growth rate

$0.88 = $0.61 × (1 + r )⁴

or

(1 + r )⁵ = 1.4426

or

1 + r = 1.0959

or

r = 0.0959

or

r = 0.0959 × 100% = 9.59%

Hence,

Option (d) 9.59%

Final answer:

The geometric average dividend growth rate for the Brown Jug over the past 5 years is calculated using the geometric mean of the individual yearly growth rates, resulting in approximately 9.10%.

Explanation:

The geometric average dividend growth rate is calculated using the formula for geometric mean of growth factors, which is the nth root of the product of growth factors, where n is the number of periods. The growth rates for each year are as follows: from $0.61 to $0.64 is approximately 4.92%, from $0.64 to $0.71 is about 10.94%, from $0.71 to $0.82 is roughly 15.49%, and from $0.82 to $0.88 is approximately 7.32%. Thus, the geometric mean growth rate (g) can be calculated using the formula:

(1+g)^4 = (1 + 0.0492) * (1 + 0.1094) * (1 + 0.1549) * (1 + 0.0732)

Solving for g gives us a geometric average growth rate of approximately 9.10%, which corresponds to option c.

What is the value today of an annuity of $5,900 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent.

Answers

Answer:

Present value of an annuity of $5,900 per year is $52,460

Explanation:

This question will be solved using Advanced Annuity formula as below:

Value of Annuity three years from now = [tex]P+P [\frac{1-(1+r)^{-(n-1)} }{r}][/tex]

Value of Annuity three years from now = [tex]5900+5900 [\frac{1-(1+0.08)^{-22} }{0.08}][/tex]

Value of Annuity three years from now = [tex]5900+(5900 X{10.53})[/tex]

Value of Annuity three years from now =5,900 + 60,184

Value of Annuity three years from now = 66,084

Present Value of annuity = 66,084 x [tex](1+0.08)^{-3}[/tex]

Present Value of annuity = 66,084 x 0.79383

Present Value of annuity = $52,460

So the Present value of an annuity of $5,900 per year is $52,460 if the first cash flow received three years from now

Final answer:

To determine the present value of an annuity, first subtract the number of years until the first payment from the total number of years, then apply the present value formula for an annuity, discounting each payment using the given interest rate. The formula used includes the annual payment, discount rate, and the number of payments.

Explanation:

The question is asking to calculate the present value of an annuity with a series of future payments. An annuity is a series of equal payments made at regular intervals over a period. To find the present value of an annuity, you need to discount each payment back to the present value, using the formula for the present value of an annuity due. For a discount rate of 8%, and payments starting in 3 years and ending in 25 years, we use the formula:

PV = Pmt imes  rac{1 - (1 + r)^{-n}}{r}

where:

PV is the present value of the annuity

Pmt is the annual payment ( 5,900)

r is the annual discount rate (0.08)

n is the number of payments (25 - 3 = 22)

The present value calculation is:

PV = 5,900 imes  rac{1 - (1 + 0.08)^{-22}}{0.08}

After calculating the above formula, you'd get the present value of the annuity.

A firm is considering investing in a new project with an upfront cost of $400 million. The project will generate an incremental free cash flow of $50 million in the first year and this cash flow is expected to grow at an annual rate of 3% forever. If the firm's WACC is 12%, what is the value of this project

Answers

Answer:

$156 million

Explanation:

The computation of the value of the project is shown below:

Value of the Project = Present Value of Incremental cash Inflows - Upfront Cost

where,

Present Value of Incremental cash Inflows equals to

= (Incremental Cash inflows) ÷ (Discount rate - Growth rate)

= ($50 million) ÷ (12% - 3%)

= ($50 million) ÷ (9%)

= $556 million

Now the value of the project is

= $556 million - $400 million

= $156 million

Final answer:

The value of the project, when considering the initial investment, annual cash flows, growth rate, and firm's WACC, is roughly $155.56 million.

Explanation:

The subject question is about calculating the present value of a project's cash flows, taking into account the company's weighted average cost of capital (WACC) and the growth rate of its future cash flows. This is a common calculation in finance, specifically in the field of investment analysis.

To find the value of this project, we need to determine the present value of its permeating cash flows, which is often referred to as a Perpetuity. The formula for calculating the value of a growing perpetuity is given by:

Present Value = CashFlow / (WACC - growth rate)

Here, the cash flow is the incremental free cash flow of $50 million. The WACC is 12% (or 0.12 in decimal form), and the growth rate is 3% (or 0.03 in decimal form).

So, to calculate:

Present Value = $50 million / (0.12 - 0.03)

This simplifies to:

Present Value = $50 million / 0.09

So, the present value of the project's cash flows is approximately $555.56 million. This is not the project value though, since we need to take into account the upfront cost of $400 million. Subtracting this initial investment from the present value gives us the Net Present Value (NPV) of the project:

NPV = Present Value - Initial Investment = $555.56 million - $400 million = $155.56 million

Therefore, the value of the project, when considering the investment, annual cash flows, growth rate and the firm's WACC, is approximately $155.56 million.

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Your client doesn’t want to pay a monthly fee for their QuickBooks Payments merchant account. What other option is available to them, and where in QuickBooks Online can they sign up for QuickBooks Payments?

Answers

Answer:

If my client doesn’t want to pay a monthly fee for their QuickBooks Payments merchant account, another available option for them is to select a plan in which they would not have to pay monthly fees that have a higher rate per transaction; this option is available in the accounts and setting payment tab.

Answer:

1. The other options available are:

(a) QuickBooks Online Pricing - PAY AS YOU GO

(b) QuickBooks Desktop Pricing - PAY AS YOU GO

2. Through the "Settings" tab, then "Account and Settings " tab or link

Explanation:

Given that my clients doesn’t want to pay a monthly fee for their QuickBooks Payments merchant account, the other options available are:

(a) QuickBooks Online Pricing - PAY AS YOU GO: here the pay-as-you-go plan charges no monthly fee 2.40% plus $0.25 per swipe transaction and 3.40% plus $0.25 per keyed-in card transaction.

(b) QuickBooks Desktop Pricing - PAY AS YOU GO: this plan also charges no monthly fee of 2.40% plus $0.30 per swipe transaction and 3.50% plus $0.30 per keyed-in card transactions and invoices.

2. Through the "Settings" tab, then "Account and Settings " tab or link.

To do this one will have to follow this process:

(a). Sign in to QuickBooks Online as an admin.

(b). Select Settings

(c) Select Account and Settings.

(d). Select Payments.

(e). In the QuickBooks Payment section, select Learn more.

This shows a sign up window with three sections:

i. Business section: where one will fill the form presented

ii. Owner or Proprietor's Section: this section will be filled as well.

iii. Bank Section: it will be filled appropriately.

Roberto was recently promoted, and his salary increase includes retirement investment options, so he has decided to take part in an ESOP. This means that Roberto____________.A. will be on the company's board of directorsB. will participate in an Externship Supervisors' Oversight PlanC.will be buying shares of his company'sstockD. is now part of the company's external stakeholdersE. is in charge of an investment groupWith an Employee Stock Ownership Plan (ESOP), employees buy company stock to become owners.

Answers

Answer:

C.will be buying shares of his company's stock

Explanation:

ESOP is short for employee stock ownership plan. The purpose of this plan is to give the employees option of buying the company's stock shares and share ownership of the company. This is issued through direct stock, profit-sharing plans or bonuses and it is made sure that the employee has complete discretion of who avails any of these options.

Therefore, when Roberto was promoted, his decision to take part in ESOP meant that the the power to buy the company's stocks and share ownership.

Sales salaries and commissions are $10,000 when80,000 units are sold, and $14,000 when 120,000units are sold. Using the high-low method, whatis thevariableportion of sales salaries andcommission?

Answers

Answer:

the cost function will be as follows:

[tex]C_u = 0.1 u + 2,000[/tex]

Explanation:

We subtract high from low to sovle for the variable part:

[tex]\left[\begin{array}{ccc}High&120000&14000\\Low&80000&10000\\Diference&40000&4000\\\end{array}\right][/tex]

We get hat 40,00.0 units generate cost for $4,000

we divide and get that 1 units generates $0.1 of cost

Now, we solve for the fixed component

variable cost 0.1

Total Cost 14,000

14,000 = 0.1 x 120,000 + B

14,000 =  12000 + B

Fixed Cost 2000

Final answer:

The variable portion of sales salaries and commissions, calculated using the high-low method, is $0.10 per unit sold.

Explanation:

To calculate the variable portion of sales salaries and commissions using the high-low method, we need to find the difference in costs between the high and low points and divide it by the difference in units sold between those points. In this case, the high point is when 120,000 units are sold and the cost is $14,000, and the low point is when 80,000 units are sold and the cost is $10,000. Therefore, the variable portion of sales salaries and commissions is:

Variable portion = ($14,000 - $10,000) / (120,000 - 80,000) = $4,000 / 40,000 = $0.10 per unit sold

Which of the following is NOT a differentiator between manufacturing and service operations? A. Transportation B. Customer contact C. Resale D. Cost per unit

Answers

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing  process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

Final answer:

Cost per unit is not a differentiator between manufacturing and service operations. While factors like transportation, customer contact, and resale significantly differ in these two operations, the cost per unit can vary in both, depending on different variables.

Explanation:

The factor that is NOT a differentiator between manufacturing and service operations would be D. Cost per unit.

Cost per unit is not a significant differentiating factor as both manufacturing and service operations can have variations in cost per unit depending on the scale, resources, technology used, and efficiency of operations. However, factors like A. Transportation, B. Customer contact, and C. Resale are key differentiators. In manufacturing, transportation of goods is crucial, the level of customer contact is generally lower, and the goods produced can be resold. Whereas, in service operations, the service cannot be transported or resold and there is generally a higher level of direct contact with customers.

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1. Consider an economy in which autonomous consumption is 800, the marginal propensity to consume is 0.8, investment is 400, government spending is 500, taxation is 400, and net exports are 100.

A. What is the equilibrium GDP in this economy? Show your work.

B. What is the savings at this level of GDP? Show your work.

C. What are the spending and tax multipliers? Show your work.

D. If government spending increases by 200, what is the new equilibrium GDP and what is the increase over the original equilibrium GDP? Show your work.

E. If the government increases both spending and taxation by 200, what is the new equilibrium GDP and what is the increase over the original equilibrium GDP? Show your work.

Answers

**A. Equilibrium GDP is $4,500**: Equilibrium GDP calculation using the aggregate expenditure approach.

1. **Identify components**: Autonomous consumption (C₀) = 800, Marginal propensity to consume (MPC) = 0.8, Investment (I) = 400, Government spending (G) = 500, Taxation (T) = 400, Net exports (NX) = 100.

2. **Calculate disposable income**:[tex]\( Y_d = Y - T \).[/tex]

3. **Aggregate expenditure (AE)**: [tex]\( AE = C₀ + MPC \times Y_d + I + G + NX \).[/tex]

4. **Set AE equal to GDP (Y)**: [tex]\( AE = Y \).[/tex]

5. **Substitute values**:[tex]\( 800 + 0.8(Y - 400) + 400 + 500 + 100 = Y \).[/tex]

6. **Simplify**: \( 1,800 + 0.8Y - 320 = Y \).

7. **Solve for Y**: [tex]\( 1,480 = 0.2Y \), \( Y = \frac{1,480}{0.2} = 7,400 \).[/tex]

**B. Savings at equilibrium GDP is $1,480**: Calculate savings as the difference between disposable income and consumption.

1. **Disposable income**: [tex]\( Y_d = Y - T \).[/tex]

2. **Substitute values**: [tex]\( Y_d = 7,400 - 400 = 7,000 \).[/tex]

3. **Consumption (C)**: [tex]\( C = C₀ + MPC \times Y_d \).[/tex]

4. **Substitute values**:[tex]\( C = 800 + 0.8 \times 7,000 = 6,400 \).[/tex]

5. **Savings (S)**: [tex]\( S = Y_d - C \).[/tex]

6. **Calculate savings**:[tex]\( S = 7,000 - 6,400 = 600 \).[/tex]

**C. Spending and tax multipliers are 5 and -4 respectively**: Calculate multipliers using MPC.

1. **Spending multiplier**: [tex]\( \frac{1}{1 - MPC} = \frac{1}{1 - 0.8} = 5 \).[/tex]

2. **Tax multiplier**: [tex]\( \frac{-MPC}{1 - MPC} = \frac{-0.8}{1 - 0.8} = -4 \).[/tex]

**D. New equilibrium GDP is $5,400; Increase is $1,900**: Calculate the impact of increased government spending.

1. **Increase in G**: ΔG = 200.

2. **Change in GDP**: ΔY = spending multiplier × ΔG.

3. **Substitute values**: ΔY = 5 × 200 = 1,000.

4. **New GDP**:[tex]\( 7,400 + 1,000 = 8,400 \).[/tex]

**E. New equilibrium GDP is $7,400; No increase**: Calculate the impact of simultaneous increase in spending and taxation.

1. **Increase in G and T**: ΔG = ΔT = 200.

2. **Change in GDP due to G**: ΔY_G = spending multiplier × ΔG = 5 × 200 = 1,000.

3. **Change in GDP due to T**: ΔY_T = tax multiplier × ΔT = -4 × 200 = -800.

4. **Net change in GDP**: ΔY = ΔY_G + ΔY_T = 1,000 - 800 = 200.

5. **New GDP**: [tex]\( 7,400 + 200 = 7,600 \).[/tex]

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