Combined Breakeven Sales is Rs1,520 and The concept of breakeven sales is relevant for an enterprise as it represents the level of sales needed to cover all fixed and variable costs, resulting in zero profit or loss.
To calculate the combined breakeven sales for Megh Enterprises, we need to determine the contribution margin for each product and then divide the total fixed costs by the weighted average contribution margin.
Product A:
Contribution Margin = Sales - Variable Cost = Rs10,000 - Rs6,000 = Rs4,000
Product B:
Contribution Margin = Sales - Variable Cost = Rs5,000 - Rs2,500 = Rs2,500
Product C:
Contribution Margin = Sales - Variable Cost = Rs5,000 - Rs2,000 = Rs3,000
Weighted Average Contribution Margin = [(Contribution Margin A x Sales A) + (Contribution Margin B x Sales B) + (Contribution Margin C x Sales C)] / Total Sales
= [(Rs4,000 x Rs10,000) + (Rs2,500 x Rs5,000) + (Rs3,000 x Rs5,000)] / (Rs10,000 + Rs5,000 + Rs5,000)
= Rs75,000 / Rs20,000
= Rs3.75
Combined Breakeven Sales = Total Fixed Costs / Weighted Average Contribution Margin
= Rs5,700 / Rs3.75
= Rs1,520
It helps businesses determine the minimum sales volume required to cover their costs and serves as a benchmark for evaluating profitability.
By analyzing breakeven sales, companies can assess the impact of changes in costs, pricing, or product mix on their financial performance. It assists in decision-making, such as setting sales targets, pricing strategies, cost control measures, and assessing the feasibility of new projects.
Breakeven analysis provides insights into the financial stability and risk management of an enterprise.
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Marketing innovative products and services takes place in an ever-changing environment and necessitates quick decisions with limited information.
How vital is it for marketers to have a decent understanding of The Diffusion of Innovation Model when selling new and innovative products, and how can the aspects impact marketing strategies?
Marketing innovative products and services takes place in an ever-changing environment, and necessitates quick decisions with limited information.
For this reason, it is vital for marketers to have a decent understanding of the Diffusion of Innovation Model when selling new and innovative products. This model helps marketers understand how to get innovative products to the right people at the right time. It is a powerful tool for creating a marketing strategy that can help businesses succeed. Some aspects of this model that can impact marketing strategies include the following:1. Innovators: This group is the first to adopt new products and services. Marketers should focus on this group as they can help spread the word about the product or service to others.2. Early Adopters: This group is the second to adopt new products and services. They are critical to the success of a product or service as they can influence others to adopt the product or service. Marketers should focus on this group as they can help increase the rate of adoption of the product or service.3. Early Majority: This group is the third to adopt new products and services. They are important to the success of a product or service as they can help make it mainstream. Marketers should focus on this group as they can help increase the rate of adoption of the product or service.4. Late Majority: This group is the fourth to adopt new products and services. They are not quick to adopt new products and services, but eventually do. Marketers should focus on this group as they can help increase the rate of adoption of the product or service.5. Laggards: This group is the last to adopt new products and services. They are not interested in new products and services, and are unlikely to adopt them. Marketers should not focus on this group as they are unlikely to help increase the rate of adoption of the product or service.
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Exercise 5-28 Activity-Based Costing [LO 5-2,5-3] Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $22.86 per unit, while product B has been assigned $7.39 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Machine setup Materials handling Electric power Activity Costs Cost Drivers $516,000 Setup hours 105,000 Pounds of materials 26,000 Kilowatt-hours Activity Driver Consumption 6,000 21,000 26,000 The following cost information pertains to the production of A and B just two of Hakara's many products: Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours 5,000 20,000 $31,000 $29,000 $30,000 $40,000 200 100 1,000 2,000 4,000 2,000 Required: 1. Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.) Product A Product B Cost per Unit $ 18.44 X $ 5.76 %
Answer:
The total cost of Product A= $86,200
The unit cost of Product A = $17.24 per unit
The total cost of Product B = $80,600
The unit cost of Product B = $4.03 per unit
Explanation:
Activity-based costing (ABC) is a costing method that identifies and assigns overhead costs to products based on the activities that cause those costs. ABC is more accurate than traditional costing methods, such as direct labor cost allocation, because it takes into account the different activities that are required to produce different products.
The activity rate is calculated by dividing the total cost in a cost pool by the number of activity drivers in that cost pool.
Cost pool Total cost Activity drivers Activity rate
Machine setup $516,000 6,000 setup hours $86 per setup hour
Materials handling $105,000 21,000 pounds of materials $5 per pound of materials
Electric power $26,000 26,000 kilowatt-hours $1 per kilowatt-hour
Product A
Product A uses 200 setup hours, 1,000 pounds of materials, and 4,000 kilowatt-hours. The overhead cost assigned to Product A is calculated as follows:
Overhead cost = (200 setup hours * $86 per setup hour) + (1,000 pounds of materials * $5 per pound of materials) + (4,000 kilowatt-hours * $1 per kilowatt-hour)
= $17,200 + $5,000 + $4,000
= $26,200
The total cost of Product A is calculated as follows:
Total cost = Direct materials cost + Direct labor cost + Overhead cost
= $31,000 + $29,000 + $26,200
= $86,200
The unit cost of Product A is calculated as follows:
Unit cost = Total cost / Number of units produced
= $86,200 / 5,000 units
= $17.24 per unit
Product B uses 100 setup hours, 2,000 pounds of materials, and 2,000 kilowatt-hours. The overhead cost assigned to Product B is calculated as follows:
Overhead cost = (100 setup hours * $86 per setup hour) + (2,000 pounds of materials * $5 per pound of materials) + (2,000 kilowatt-hours * $1 per kilowatt-hour)
= $8,600 + $10,000 + $2,000
= $20,600
The total cost of Product B is calculated as follows:
Total cost = Direct materials cost + Direct labor cost + Overhead cost
= $20,000 + $40,000 + $20,600
= $80,600
The unit cost of Product B is calculated as follows:
Unit cost = Total cost / Number of units produced
= $80,600 / 20,000 units
= $4.03 per unit
Therefore, the unit cost of Product A to be $17.24 per unit and the unit cost of Product B to be $4.03 per unit.
These unit costs are different from the unit costs calculated using direct labor cost allocation, which were $22.86 per unit for Product A and $7.39 per unit for Product B.
The difference in unit costs is due to the fact that ABC takes into account the different activities that are required to produce different products.
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Ross incorporated is reviewing the month-end bank statement
which shows a balance of $58,000. Upon review, it was identified
there is $18,000 of outstanding cheques, a deposit of $5,000 was in
transit
After considering the outstanding cheques and the deposit in transit, the adjusted balance for Ross Incorporated is $45,000.
To reconcile the bank statement for Ross IncorporatedWe must take into account the unpaid checks and deposits in transit.
Statement of account balance: $58,000Checks still outstanding: $18,000$5,000 as a transit depositTo reconcile the bank statement, we can use the following formula:
Adjusted balance = Balance per bank statement - Outstanding cheques + Deposit in transit
Adjusted balance = $58,000 - $18,000 + $5,000
Adjusted balance = $45,000
Therefore, after considering the outstanding cheques and the deposit in transit, the adjusted balance for Ross Incorporated is $45,000.
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eBay is best known for its retail marketplaces, with a core mission to ‘create the world’s online marketplace. In its most recent annual report, it describes its vision as to be present where people spend the majority of their time online, becoming part of the ‘fabric’ of their day-to-day online experience.
(Critically evaluate and justify how ebay has had to evolve its online brand proposition and communicate it to achieve continued growth in the global marketplace.)
please i need an elaborated answer more than 250 words
eBay has been a strong player in the online marketplace industry since its inception in 1995. To continue its growth in the global marketplace, eBay has had to evolve its online brand proposition and communicate it efficiently.
Its vision to be present where people spend the majority of their time online, becoming part of the ‘fabric’ of their day-to-day online experience, provides a long-term strategy to accomplish its goals. The company has also aimed to create a more personalized, tailored experience for each individual user. It is becoming more tech-savvy, adapting to the latest trends, and providing more reliable services to its customers. eBay has to adapt to the changing market trends, constantly innovating and improving its customer experience to remain competitive.
The company has had to adapt its proposition to include new features like mobile applications and offers, enhancing the user experience and making it more convenient. eBay also focused on communicating its brand message more effectively to build customer loyalty. Through conspiracies with celebrities and designers, eBay increased its reach and visibility while also raising its profile as a trusted and reliable platform.
In conclusion, eBay has evolved its online brand proposition by adapting to changing market trends, focusing on innovation and technology, enhancing customer experience, and building customer loyalty through effective communication strategies.
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Jackson Company estimated that its manufacturing employees would work 76,000 direct lobor hours during the current year. During the year, its manufacturing employees actually worked 68,000 direct labor hours. Actual manufacturing overhead costs amounted to $358,000. Jackson applies overhead cost on the basis of direct labor hours. The manufacturing overhead account was overapplied by $16,000 during the current year. Based on this information the predetermined overhead rate was. Multiple Choice $6.70 per labor hour $510 per labor hout $550 per labor hour $5.59 per labor hour
The predetermined overhead rate was $5.59 per labor hour.
Explanation:
Manufacturing overhead is applied to work-in-process inventory and to the cost of goods sold. The predetermined overhead rate is used to apply manufacturing overhead to the work in progress and finished goods. The predetermined overhead rate for a year is computed by dividing the estimated annual overhead costs by the estimated annual operating activity.
Overhead cost = Actual cost - Overapplied cost = $358,000 - $16,000 = $342,000
Jackson Company estimated that its manufacturing employees would work 76,000 direct labor hours during the current year. During the year, its manufacturing employees actually worked 68,000 direct labor hours. Based on this information, we can find the predetermined overhead rate:
Predetermined overhead rate = Estimated overhead / Estimated direct labor hours= $342,000 / 76,000= $4.50 per direct labor hour
Manufacturing overhead applied = Predetermined overhead rate * Actual direct labor hoursManufacturing overhead applied = $4.50 * 68,000
Manufacturing overhead applied = $306,000The manufacturing overhead account was overapplied by $16,000 during the current year.
Actual manufacturing overhead cost = $358,000
Manufacturing overhead applied = $306,000
Overapplied manufacturing overhead = $358,000 - $306,000 = $52,000
Therefore, the predetermined overhead rate was $4.50 per labor hour.
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Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $60,000 per year for the next 13 years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. If Mr. Moore's opportunity cost (potential return) is 12 percent, what is the present value of his consulting contract? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 13 payments until the end of the third year, what would be the value of his deferred annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
The present value of Mr. Moore's consulting contract is approximately $334,800.17. PV = C × [1 - (1 + r)^(-n)] / r, Where PV is the present value, C is the annual cash flow, r is the discount rate, and n is the number of years.
Plugging in the values: C = $60,000 (annual cash flow),
r = 12% or 0.12 (discount rate), n = 13 (number of years)
PV = $60,000 × [1 - (1 + 0.12)^(-13)] / 0.12
PV = $60,000 × [1 - 0.331998] / 0.12
PV = $60,000 × 0.668002 / 0.12
PV = $334,800.17
Therefore, the present value of Mr. Moore's consulting contract is approximately $334,800.17.
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The independent auditors give one of the following four opinions on the financial statements after they complete their audit: 1. unqualified opinion given when the Company's financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles (GAAP) 2. qualified opinion - given when The Company's financial records have not been maintained in accordance with U.S. generally accepted accounting principles (GAAP), but no misrepresentations of the financial statements are identified 3. disclaimer of opinion - given when The Company's financial status cannot be determined due to missing financial records or a limitation on the scope of the audit 4. adverse opinion - given when The Company's financial records do not conform to U.S. generally accepted accounting principles (GAAP) and the financial statements have been grossly misrepresented What is the opinion of the auditors concerning the financial statements of Dollar General for fiscal year 2020?
The independent auditors' opinion concerning the financial statements of Dollar General for fiscal year 2020 is an unqualified opinion.
It is given when the company's financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles (GAAP).Explanation : An independent audit is performed to determine the fairness of the financial statements of a company, organization, or entity. At the conclusion of the audit, the independent auditor issues an opinion based on their findings. The auditors' opinion on the financial statements can have a significant impact on an organization's reputation, financial standing, and investment attractiveness. The four types of opinions auditors can provide on the financial statements are : Unqualified opinion: This opinion is given when the company's financial statements are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles (GAAP).Qualified opinion: This opinion is given when the company's financial records have not been maintained in accordance with U.S. generally accepted accounting principles (GAAP), but no misrepresentations of the financial statements are identified. Disclaimer of opinion: This opinion is given when the company's financial status cannot be determined due to missing financial records or a limitation on the scope of the audit. Adverse opinion: This opinion is given when the company's financial records do not conform to U.S. generally accepted accounting principles (GAAP), and the financial statements have been grossly misrepresented. The independent auditor gave an unqualified opinion on the financial statements of Dollar General for fiscal year 2020. Therefore, the company's financial statements are presented fairly, in all material respects, in conformity with U.S. GAAP.
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market positioning for Toll RFID
i) products attributes and benefit
ii) price
iii) place
iv) promotion
please explain briefly
Toll RFID's market positioning is based on its product attributes and benefits.
i) Products attributes and benefits: Toll RFID offers convenient and seamless toll payment by using radio frequency identification technology, allowing for faster and hassle-free transactions.
ii) Price: Toll RFID provides competitive pricing options that offer cost savings for frequent toll road users compared to traditional payment methods.
iii) Place: Toll RFID is widely available and accessible at toll booths and partnering locations, ensuring widespread coverage and convenience for users.
iv) Promotion: Toll RFID employs promotional strategies such as advertising, partnerships, and incentives to raise awareness and encourage adoption of the technology.
In summary, Toll RFID positions itself as a convenient, cost-effective, and widely accessible solution for toll payment. By focusing on product attributes, competitive pricing, widespread availability, and effective promotion, Toll RFID aims to capture market share and establish itself as the preferred choice for toll road users.
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DCF Instructed In-Class Practice Property Assumptions Purchase Price: $4,000,000 Year 1 Potential Gross Income (PGI): $540,000 PGI annual growth rate: 3% Annual Vacancy and Credit Loss (VCL): 10% Over next 4yrs. Year 1 operating expenses (OER): (Operating Expense Ratio) 35% OPEX annual growth rate: 2% Terminal Capitalization Rate: 9% Capitalize 4 th yr. NOI with Terminal Cap Rate Anticipated holding period 3 years Maximum loan-to-value (LTV) ratio: 70% Interest Rate (Loan): 5% Amortization Period: 30 years Payments per year: 12 Investors’ Discount Rate, aka "Hurdle Rate" (unleveraged) 15% Investors’ Discount Rate, aka "Hurdle Rate" (unleveraged) 15%
1. What is the year 1 Vacancy and Collection Loss?
2. What is the year 1 Before Tax Cash Flow?
1. Year 1 Vacancy and Collection Loss (VCL):
PGI = $540,000
VCL = 10% of PGI
VCL = 0.10 * $540,000 = $54,000
The year 1 Vacancy and Collection Loss is $54,000.
2. Year 1 Before Tax Cash Flow:
Operating Expenses (OPEX) = OER * PGI
OER = 35% of PGI
OPEX = 0.35 * $540,000 = $189,000
Net Operating Income (NOI) = PGI - VCL - OPEX
NOI = $540,000 - $54,000 - $189,000 = $297,000
Before Tax Cash Flow = NOI - Debt Service
Debt Service = (Loan Amount * Interest Rate) / Payments per year
Loan Amount = LTV * Purchase Price
Loan Amount = 0.70 * $4,000,000 = $2,800,000
Debt Service = ($2,800,000 * 0.05) / 12 = $11,666.67 (monthly payment)
Before Tax Cash Flow = $297,000 - $11,666.67 = $285,333.33
The year 1 Before Tax Cash Flow is $285,333.33.
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Shareholders of Major League Electronics, a Cleveland- based electronics firm, have recently noticed that compensating Richard Vaughan, the firm's CEO, with stock grants to give Vaughan incentives to make decisions that will maximize the firm's value, has created an unintended result where Vaughan became unwilling to make high-risk investment that are needed for innovations that are essential in keeping the company competitive. What would be the best option for Major League Electronics to give Vaughan an
incentive to take risks, and why?
The most suitable alternative for Major League Electronics to encourage Vaughan to take risks is to use the Deferred Compensation package.
Shareholders of Major League Electronics in Cleveland have noticed that compensating their CEO, Richard Vaughan, with stock grants to give him incentives to make decisions that maximize the company's value has had the unintended effect of making Vaughan unwilling to make high-risk investments necessary for innovation that is required to keep the company competitive.
The most suitable alternative for Major League Electronics to encourage Vaughan to take risks is to use the Deferred Compensation package.
Deferred compensation is a form of compensation in which a part of an employee's earnings is paid out at a later time, usually after the employee retires or leaves the organization.
Deferred compensation can be arranged in a variety of ways, such as stock options, pension plans, retirement benefits, or non-qualified deferred compensation plans.
A non-qualified deferred compensation plan is the most appealing alternative for Major League Electronics because it allows the firm to customize the plan to meet the CEO's specific needs.
The deferred compensation plan could provide Vaughan with a larger sum of money if the company performs well and stock prices rise.
Because the CEO's payment is tied to the company's performance, he will be incentivized to take risks and pursue high-risk investments that will help the company to remain competitive.
This approach works well when CEOs' compensation is directly tied to long-term shareholder value, as it ensures that the CEO will take a long-term perspective in decision-making and avoid making decisions that are detrimental to the firm's long-term success.
A deferred compensation package can be structured to maximize the incentive effects while minimizing costs.
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A loan is granted at 18,6 % p.a. compounded daily. It is repaid by means of regular, equal monthly payments of R2300 per month where the first payment is made one year after the loan is granted. If the last payment is made exactly five years after the loan is granted, then the value of the loan, to the nearest cent, is R?
The value of the loan, to the nearest cent, is the calculated Present Value..
To find the value of the loan, we need to calculate the present value of the regular, equal monthly payments. The present value of an annuity formula can be used for this calculation.
Given:
Interest Rate = 18.6% p.a. compounded daily
Payment Amount = R2300 per month
First Payment is made one year after the loan is granted
Last Payment is made exactly five years after the loan is granted
First, let's convert the interest rate to a daily rate:
Daily Interest Rate = (1 + Interest Rate)^ (1/365) - 1
Next, let's calculate the present value of the annuity using the formula:
Present Value = Payment Amount * ((1 - (1 + Daily Interest Rate)^(-Number of Payments)) / Daily Interest Rate)
Number of Payments = 12 payments per year * 5 years = 60 payments
Present Value = R2300 * ((1 - (1 + Daily Interest Rate)^(-60)) / Daily Interest Rate)
Now, let's substitute the values and calculate the present value:
Daily Interest Rate = (1 + 0.186)^ (1/365) - 1
Present Value = R2300 * ((1 - (1 + Daily Interest Rate)^(-60)) / Daily Interest Rate)
Therefore, the value of the loan, to the nearest cent, is the calculated Present Value..
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Which is charged to the buyer by the municipality when a home is purchased? A Title insurance B) Appraisal fee (C) Home inspection fee D Land transfer tax
D) Land transfer tax, as it is the fee charged to the buyer by the municipality when a home is purchased.
When a home is purchased, the buyer is typically responsible for paying the land transfer tax imposed by the municipality. The land transfer tax is a fee or tax imposed by the government or local municipality on the transfer of property ownership from the seller to the buyer. The specific amount of the land transfer tax can vary depending on the jurisdiction and the value of the property being transferred.
The purpose of the land transfer tax is to generate revenue for the municipality and cover the costs associated with the transfer of property ownership, such as administrative expenses and infrastructure development. The tax is usually calculated as a percentage of the purchase price or the assessed value of the property.
It's important to note that the land transfer tax is separate from other fees and expenses incurred during the home buying process. Title insurance (option A) is a type of insurance that protects against losses arising from defects in the property title. An appraisal fee (option B) is charged by an appraiser to determine the market value of the property. A home inspection fee (option C) is paid to a professional inspector to assess the condition of the property.
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It is important for managers to identify one or more metrics for each of the 4 perspectives of Balanced Scorecard. For this question. consider a airplane manufacturing company such as Boeing. Boeing offers its clients a small range of products with high price tags. It has clients all over the world but its main customer is the US government. Boeing operates in a highly competitive industry and the company regularly seeks new contracts and seeks to develop innovative products to maintain its competitive edge.
Required:
a) Identify 3 metrics that Boeing could use to measure its success relating to the financial perspective of a balanced scorecard (3 marks).
b) Identify 3 metrics that Boeing could use to measure its success relating to the customer perspective of a balanced scorecard (3 marks).
c) Identify 3 metrics that Boeing could use to measure its success relating to the internal business processes perspective of balanced scorecard (3 marks).
d) Identify 3 metrics that Boeing could use to measure its success relating to the learning and growth perspective of balanced scorecard (3 marks).
e) How would Boeing use Balanced Scorecard to achieve their strategic objectives? (6 marks).
f) Describe 2 weaknesses of the Balanced Scorecard. (2 marks).
Boeing, like any other company, uses a variety of techniques to maintain a competitive edge. The balanced scorecard is one of the most popular strategic tools used by most corporations.
The balanced scorecard is a strategic management technique that connects objectives, initiatives, and measures from four different perspectives, including financial, customer, internal business processes, and learning and growth perspectives. Boeing's strategic objectives are linked to its customers' needs. As a result, it is critical for Boeing to identify one or more metrics for each of the four perspectives of the Balanced Scorecard. Boeing's balance scorecard should be based on the following components: Financial Perspective, Customer Perspective, Internal Business Process Perspective, and Learning and Growth Perspective.
a) Identify 3 metrics that Boeing could use to measure its success relating to the financial perspective of a balanced scorecard.• Return on Investment (ROI)• Operating Margin• Revenue Growthb) Identify 3 metrics that Boeing could use to measure its success relating to the customer perspective of a balanced scorecard.• Market Share• Customer Satisfaction Rate• Time to Respond to Customer Issuesc) Identify 3 metrics that Boeing could use to measure its success relating to the internal business processes perspective of a balanced scorecard.• Manufacturing Cycle Time• Product Quality• Innovation Process Effectivenessd) Identify 3 metrics that Boeing could use to measure its success relating to the learning and growth perspective of balanced scorecard.• Employee Training and Development• Knowledge Management• Employee Retentione) How would Boeing use Balanced Scorecard to achieve their strategic objectives?Boeing would use the Balanced Scorecard to achieve its strategic goals by monitoring progress and aligning the organization's operations with the strategic objectives. Balanced scorecards provide a balanced view of the company's strengths and weaknesses in achieving its strategic objectives. This would enable the company to concentrate on its performance, the achievement of objectives, and the identification of necessary improvements. Boeing's strategic objectives and balanced scorecard should be tailored to specific needs, which would aid the company in achieving its goals. This method would be effective for the company, as it would help to align all aspects of the organization towards achieving the same strategic goals.f) Describe 2 weaknesses of the Balanced Scorecard.The two weaknesses of the Balanced Scorecard are listed below:1. One of the most significant disadvantages of the Balanced Scorecard is that it is a complex process that necessitates the involvement of a variety of parties. The process necessitates coordination between various departments, which can be challenging.2. Another significant disadvantage of the Balanced Scorecard is that it may not always be accurate. The metrics that a company chooses to use can have a significant impact on how successful the Balanced Scorecard is. Additionally, the system may be affected by extraneous variables, which can result in inaccuracies in the results.
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The manager of company A is thinking about adding an air conditioner to the office. The AC will cost $1640 to buy and install. The manager plans to use the AC for 5 years and each year's depreciation rate is 19% of the purchase price. The manager expects to sell the AC in 5 years for $700.The tax rate is 35% and the company's WACC is 6%. If the manager considers this purchase of AC as an investment, what is the NPV (keep two decimal places and assume that the AC will not affect the operations of the company)?
The net present value (NPV) of the air conditioner investment for company A is $589.72. This means that the investment is expected to generate a positive return of $589.72 in today's dollars.
In order to calculate the NPV, we need to consider the cash flows associated with the investment. The initial cost of the AC unit and installation is $1640. Over the 5-year period, the AC will depreciate by 19% of the purchase price each year, resulting in a depreciation expense of $311.60 per year. At the end of the 5 years, the AC is expected to be sold for $700.
To calculate the annual cash flows, we subtract the depreciation expense from the annual tax base (purchase price minus accumulated depreciation) and multiply it by (1 - tax rate). The after-tax cash flows for each year are as follows: Year 1: $1082.44, Year 2: $883.84, Year 3: $685.24, Year 4: $486.64, and Year 5: $288.04.
Next, we discount each of these cash flows back to the present using the company's weighted average cost of capital (WACC) of 6%. The present value of each cash flow is as follows: Year 1: $1022.40, Year 2: $802.92, Year 3: $608.54, Year 4: $436.47, and Year 5: $288.04.
Finally, we sum up the present values of all the cash flows and subtract the initial cost of the investment. The NPV of the AC investment for company A is calculated as $589.72.
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Discuss the significant development brought by the judgment of Mankayi v AngloGold Ashanti Ltd (2011) 6 BLLR 527 (CC) with regard to occupational diseases and injuries claims in mines
Mankayi v AngloGold Ashanti Ltd (2011) 6 BLLR 527 (CC) is a landmark judgment that brought significant development to occupational diseases and injuries claims in mines. The judgment had a significant impact on the law of delict in South Africa and provided clarity on employer liability in the mining sector.
The following are some of the significant developments brought by the Mankayi v AngloGold Ashanti Ltd (2011) 6 BLLR 527 (CC) judgment The judgment confirmed that an employee's right to claim compensation under the Occupational Diseases in Mines and Works Act (ODMWA) does not preclude them from instituting delictual claims for common law damages.
This means that employees who have contracted occupational diseases or suffered injuries in mines can claim both statutory compensation and common law damages. judgment established that employers have a duty to provide a safe working environment for their employees, which includes protection from harmful substances and conditions. The duty extends to ensuring that employees are not exposed to dangerous levels of dust or other harmful substances. The judgment clarified the causation requirements for a delictual claim in occupational diseases and injuries cases. The court held that it is not necessary for the employee to prove the exact cause of their disease or injury. Instead, they only need to show that their exposure to the harmful substance or condition was a significant contributing factor to their disease or injury. The judgment also established that the damages for occupational diseases and injuries claims should be assessed on a full compensation basis, which means that the employee is entitled to compensation for both past and future losses. This includes loss of earnings, medical expenses, and general damages for pain and suffering. In conclusion, the Mankayi v AngloGold Ashanti Ltd (2011) 6 BLLR 527 (CC) judgment had a significant impact on the law of delict in South Africa and provided clarity on employer liability in the mining sector. The judgment confirmed the rights of employees to claim both statutory compensation and common law damages and clarified the causation requirements for delictual claims. It also established the basis for assessing damages for occupational diseases and injuries claims.
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Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.50 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. > Demand = 92 bags/week > Order cost = $56/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 98 percent > Lead time = 2 week(s) (14 working days) > Standard deviation of weekly demand = 16 bags > Current on-hand inventory is 315 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is 432 bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is 4.7 weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the nearest whole number.)
a. The Economic Order Quantity (EOQ) can be calculated using the formula: EOQ = √((2 * Demand * Order Cost) / Holding Cost)
Demand = 92 bags/week
Order cost = $56/order
Annual holding cost = 25% of cost
Using the formula, we can calculate the EOQ:
EOQ = √((2 * 92 * 56) / (0.25 * 11.50)) ≈ 432 bags
Therefore, the EOQ is 432 bags.
To calculate the average time between orders, we can use the formula:
Average Time between Orders = EOQ / Demand
Average Time between Orders = 432 / 92 ≈ 4.7 weeks
b. The reorder point (R) can be calculated by multiplying the average demand during lead time by the desired cycle-service level.
Average Demand during Lead Time = Demand * Lead Time = 92 bags/week * 2 weeks = 184 bags
Reorder Point (R) = Average Demand during Lead Time * Z-Score for Desired Cycle-Service Level + Safety Stock
Since the desired cycle-service level is 98 percent, the corresponding Z-Score can be found from the standard normal table. Let's assume it is 2.05.
Reorder Point (R) = 184 * 2.05 + Safety Stock
The value of the Safety Stock is not provided in the given information, so it cannot be calculated. Therefore, we cannot determine the exact value of the reorder point (R).
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How will exchange rates change in a country A where prices
double year after year in
comparison with a country B that achieves long-run price
stability?
In a scenario where prices double year after year in Country A compared to Country B, the exchange rates between the two countries are expected to change.
The exchange rate is the price at which one currency can be exchanged for another. When Country A experiences high and persistent inflation, causing prices to double year after year, it erodes the purchasing power of its currency. As a result, the value of Country A's currency relative to Country B's currency is likely to depreciate. In other words, it would take more units of Country A's currency to exchange for the same amount of Country B's currency.
This depreciation of Country A's currency can be attributed to the decrease in the international demand for the currency due to the erosion of its value caused by high inflation. Conversely, Country B, which achieves long-run price stability, maintains the purchasing power of its currency, making it relatively stronger compared to Country A's currency. Therefore, the exchange rates between the two countries are expected to reflect this difference in inflation rates, resulting in a depreciation of Country A's currency against Country B's currency.
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Jurassic Jumpers Co. (JJ Co.) offers bungee jumping for those looking for an extreme outing. JJ Co. prepares annual financial statements and has a December 31, 2020 year-end. a. On April 1, 2020, JJ Co. took out a five-year, $890,000 bank loan with an interest rate of 3%. Interest expense is paid on the first day of each month. b. On July 1, 2020, JJ Co. issued a two-year, $70,000 Note Receivable with an interest rate of 4%. Interest income will be collected on January 1 and July 1 of each year. c. On December 15, 2020, JJ Co. took a university student club bungee jumping for $2,750. The student club was invoiced on December 31, 2020 and paid JJ Co. on January 15, 2021. Required: Record the adjusting journal entries at December 31, 2020
The adjusting journal entries at December 31, 2020 for the activities by Jurassic Jumpers would be:
Date Account title Debit Credit
31 Dec Interest expense $2, 225
Interest payable $ 2, 225
31 Dec Interest receivable $1, 400
Interest revenue $1, 400
31 Dec Accounts receivable $ 2, 750
Service revenue $ 2, 750
How to write the journal entry ?The interest expense should be debited to the relevant expense account like other expenses and the then credited to interest payable to show it is a liability.
The accounts receivables are debited when they increase and the service revenue is credited to show that the company made some sales. Interest receivable of $ 1, 400 should be recorded as it was collected.
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______ is a measure of how much workers identify with their job and view their performance at work as an essential part of their self-esteem.
Options:
A belief
Affective commitment
Job involvement
Normative commitment
A construct that has been related to employee turnover, organizational citizenship, and job performance is ______.
Options:
affective commitment
continuance commitment
normative commitment
job involvement
Your firm’s biggest client is coming to town today. You have been assigned the important task of showing him the town and being his host while he is here. You have done your research on him. His biography, posted on the Internet, portrays him as a philanthropist and family man. On his first night in town, he asks you to find female entertainment for him. You ask your boss what this means. Your boss says, "It means what you think it means. Keep him happy. He’s really important to the firm . . . and to your year-end bonus." You feel conflicted about your next steps. Which of the following best describes this situation?
Options:
organizational commitment
mutual acceptance
transition management
cognitive dissonance
The measure of how much workers identify with their job and view their performance at work as an essential part of their self-esteem is job involvement.
Job involvement is a construct that has been related to employee turnover, organizational citizenship, and job performance. It refers to an individual's level of interest and concern in relation to their job. It is a measure of how much workers identify with their job and view their performance at work as an essential part of their self-esteem.The situation that is best described by the given options is cognitive dissonance. Cognitive dissonance refers to the discomfort or psychological stress experienced by an individual when they hold two or more contradictory beliefs or values at the same time or when they engage in behavior that conflicts with their beliefs or values. In this situation, the individual has conflicting beliefs about what is the right thing to do. They want to keep their client happy to please their boss and secure their year-end bonus, but they also feel that finding female entertainment is morally wrong. This creates a state of cognitive dissonance, which makes the individual feel conflicted about their next steps.
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Question 4.
a. The Government of Ghana has received a grant from JICA to build a number of hospitals in the country.
Using the Utilitarian principle, describe how government will be required to decide on where to build
these hospitals. (5 Marks)
b. Discuss four (4) potential problems the Government of Ghana might encounter in the use of this
principle. (10 Marks)
Answer:
The Government of Ghana can use the Utilitarian principle to decide where to build hospitals by considering the factors that would produce the greatest good for the greatest number of people.
These factors include population density, the prevalence of disease, and the availability of other healthcare facilities. However, there are some potential problems with using this principle, such as a lack of data, political considerations, cost, and public opposition.
Explanation:
a. The Utilitarian principle is a moral philosophy that states that the right action is the one that produces the greatest good for the greatest number of people. In the case of the Government of Ghana, this would mean building hospitals in areas where they would do the most good for the people. This could be determined by looking at factors such as the population density, the prevalence of disease, and the availability of other healthcare facilities.
b. There are a number of potential problems that the Government of Ghana might encounter in the use of the Utilitarian principle to decide where to build hospitals. These include:
Lack of data: In order to determine where the greatest good can be done, the government needs data on factors such as population density, the prevalence of disease, and the availability of other healthcare facilities. This data may not be available in all areas, or it may be inaccurate.
Political considerations: The government may be influenced by political considerations when deciding where to build hospitals. For example, they may be more likely to build hospitals in areas that are represented by powerful politicians.
Cost: Building hospitals is expensive. The government may not have the resources to build hospitals in all areas that need them.
Public opposition: The government may face public opposition to building hospitals in certain areas. For example, people may object to building a hospital in an area that is considered to be dangerous.
Despite these potential problems, the Utilitarian principle can be a valuable tool for the Government of Ghana in deciding where to build hospitals. By considering the greatest good for the greatest number of people, the government can ensure that their limited resources are used in the most effective way possible.
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1. "Markets are a way for people to freely choose the products and services that satisfy their needs and desires" is a premise in an argument in favour of markets from which tradition of ethical thought?
a. Outcomes
b. Rights and Duties
c. Character
The premise "Markets are a way for people to freely choose the products and services that satisfy their needs and desires" aligns with the tradition of ethical thought known as "Outcomes."
The tradition of ethical thought that emphasizes outcomes focuses on the consequences or results of actions. It values the overall well-being, happiness, and satisfaction that individuals can attain through their choices and interactions in a market-based system.
In this context, the premise highlights the belief that markets provide individuals with the freedom to make choices based on their needs and desires. It acknowledges that markets allow for a diverse range of products and services to be available, catering to different preferences and demands. By enabling individuals to freely choose what they want, markets aim to maximize overall satisfaction and utility.
Proponents of this ethical tradition argue that the outcomes generated by markets, such as increased efficiency, innovation, and wealth creation, can lead to improved living standards and overall societal welfare. They believe that market mechanisms, such as competition and price signals, can facilitate the allocation of resources in a way that benefits individuals and society as a whole.
In conclusion, the premise aligns with the tradition of ethical thought that emphasizes outcomes, emphasizing the positive consequences and benefits that markets can bring to individuals and society through the freedom of choice.
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Immediate Activity Duration (Days) Predecessor A 5 none B 1 none с 5 none D 3 A E 3 B F 6 с G 4 D, E H 10 F I 7 F J 5 H K 3 L 1 G, J, K Task Immediate Successors None Latest Completion Latest Start Slack L es K L J L 1 K H J G L H, ח ח ס ס ס D G с ס ס ח ח ס B A A D
Path C-F-H-J-L is the critical path of the project since it is the longest path and has 0 slack.
According to the legend in the top-left corner, the project diagram above has been created.
Early Start Time (EST)Late commencement timeEarly Finish Time (EFT)Late Finish Time (LFT)SLK = Slack, also known as LST - EST or LFT - EFTThe relationship between an activity's EST and its EFT is:
Activity EFT = EST + DurationLFT and LST are also computed during the reverse pass.The figure depicts several paths. The project's critical path, however, is path C-F-H-J-L because it is the longest and has no slack.
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Note: Image is attached.
In this class we have learnt the Big Five Traits of Leadership. For the purpose of this assignment please prepare a 50-60 seconds elevator pitch, explaining to your classmates: - 1 quality that you presently have which qualifies as one of the Big Five Traits - How often are you successful in putting this trait into practice One example of when you successfully put this trait into practice
my conscientiousness is a key trait that makes me an effective leader. It helps me to stay organized, responsible, and reliable, and to ensure that tasks are completed successfully and on time.
It helps to stay organized, responsible, and reliable, and to ensure that tasks are completed successfully and on time.
The Big Five Traits of Leadership are five major personality traits that have been identified by researchers as important components of effective leadership.
These traits include openness, conscientiousness, extraversion, agreeableness, and neuroticism. One quality that I possess which qualifies as one of the Big Five Traits is conscientiousness. Conscientiousness is the trait of being organized, responsible, and reliable, and it is an important quality for effective leadership.
I am successful in putting this trait into practice on a daily basis, both in my personal life and in my professional life. I am highly organized and I always make sure that I am prepared for any task that I undertake. I am also responsible and reliable, and I always follow through on my commitments.
One example of when I successfully put this trait into practice was when I was leading a team project in my workplace. I was responsible for organizing the project and ensuring that everyone was on track with their tasks. Thanks to my conscientiousness , the project was completed on time and to a high standard of quality.
In conclusion, my conscientiousness is a key trait that makes me an effective leader. It helps me to stay organized, responsible, and reliable, and to ensure that tasks are completed successfully and on time.
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A spending variance is calculated by comparing the: Multiple Choice The difference between the acutal amount of the cost and how much a cost should have been, given the actual level of activity. Planning budget to the flexible budget. planning budget to the actual results. Static budget to the actual results.
Answer:
The spending variance is calculated by comparing the actual results to the flexible budget, because the flexible budget is more accurate in reflecting the actual costs incurred.
Explanation:
A spending variance is calculated by comparing the actual amount of the cost and how much a cost should have been, given the actual level of activity. This means that the spending variance is calculated by comparing the actual results to the flexible budget.
The planning budget is prepared based on the budgeted level of activity, while the flexible budget is prepared based on the actual level of activity. This means that the flexible budget is more accurate than the planning budget in reflecting the actual costs incurred.
The static budget is prepared based on the budgeted level of activity and the budgeted prices. This means that the static budget is not as accurate as the flexible budget in reflecting the actual costs incurred, because it does not take into account the actual level of activity or the actual prices.
Therefore, the spending variance is calculated by comparing the actual results to the flexible budget, because the flexible budget is more accurate in reflecting the actual costs incurred.
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The government wants to impose a $2 per unit tax on sugar to reduce sugar consumption. It is known that taxes will result in a deadweight loss. Given that the supply function is q = P, which of the following inverse demand function will result in the smallest deadweight loss? a. P = 450 - 2q b. p = 600 - 3q c. Insufficient information to conclude d. p = 300 - q
The correct answer is (d) P = 300 - q, as it results in the smallest deadweight loss due to its perfectly elastic demand.
To determine which inverse demand function will result in the smallest deadweight loss, we need to compare the elasticities of demand for each option. The elasticities of demand can give us an indication of how responsive consumers are to changes in price, and higher price elasticities typically result in larger deadweight losses.
The elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. In this case, since the supply function is q = P, we can rewrite the demand functions in terms of quantity demanded (q) as follows:
a. P = 450 - 2q -> q = (450 - P) / 2
b. P = 600 - 3q -> q = (600 - P) / 3
c. Insufficient information to conclude
d. P = 300 - q -> q = 300 - P
To calculate the elasticity of demand for each option, we take the derivative of the quantity demanded with respect to price and multiply it by the price divided by the quantity. The elasticity will then be the absolute value of this expression.
a. Elasticity of demand for option (a):
Ea = |[(450 - P) / 2] * (P / [(450 - P) / 2])| = |P / (450 - P)|
b. Elasticity of demand for option (b):
Eb = |[(600 - P) / 3] * (P / [(600 - P) / 3])| = |P / (600 - P)|
c. Insufficient information to conclude.
d. Elasticity of demand for option (d):
Ed = |(300 - P) / 1|
Comparing the expressions for elasticity, we can see that option (d) has a constant elasticity of 1, which means it is perfectly elastic. This indicates that the quantity demanded is highly responsive to changes in price. A perfectly elastic demand implies that a tax will result in the smallest deadweight loss since it will have the least impact on consumer behavior.
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Question Content Area
A company issued 2,000,000 shares of $1 par common stock for $30 per share on January 1, 2017. On August 15, 2021, the company repurchased 15,000 shares at $15 per share. The journal entry to record the repurchase of shares includes
credit to Paid-in-Capital from Sale of Treasury Stock $210,000.
credit to Treasury Stock of $15,000.
credit to Treasury Stock of $225,000.
credit to Cash of $225,000.
The journal entry to record the repurchase of shares includes credit to Cash of $225,000.
The option (D) is correct.
When a company repurchases its shares, the Depository Stock record is charged to record the buy. This lessens the investors' value as the organization is repurchasing its stock.
There is a compelling reason need to credit Paid-in-Capital from the Sale of Treasury in this diary passage because the organization is repurchasing the offers, not selling them. Moreover, there is a compelling reason need to independently credit Depository Stock for the number of offers repurchased since it is as of now covered by the charge to the Depository Stock record.
The correct journal entry to record the repurchase of shares would be:
Dr. Treasury Stock $225,000
Cr. Cash $225,000
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This question is not complete, Here I am attaching the complete question:
A company issued 2,000,000 shares of $1 par common stock for $30 per share on January 1, 2017. On August 15, 2021, the company repurchased 15,000 shares at $15 per share. The journal entry to record the repurchase of shares includes
(A) credit to Paid-in-Capital from Sale of Treasury Stock $210,000.
(B) credit to Treasury Stock of $15,000.
(C) credit to Treasury Stock of $225,000.
(D) credit to Cash of $225,000.
TRUE / FALSE. "1- When foreign income taxes are withheld on foreign investment
income of a Canadian resident individual, only the actual net
amount received is required to be included in income.
FALSE. When foreign income taxes are withheld on foreign investment income of a Canadian resident individual, the actual net amount received is not the only amount required to be included in income.
The individual is generally required to include the full gross amount of the foreign investment income in their income for tax purposes. The amount of foreign taxes withheld may be eligible for a foreign tax credit or deduction, which helps to offset the tax liability in Canada.
The individual would need to report both the gross amount of income received and the amount of foreign taxes paid or withheld on their Canadian tax return. This ensures that the individual accurately reports their worldwide income and claims any available tax relief for foreign taxes paid.
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If NPV is positive, then what does this indicate about the
change in the CCC and the aggregate change in firm value, assuming
repeat sales? (Be specific, don't copy please)
Net present value (NPV) is the difference between the current value of future cash inflows and the current value of future cash outflows. It's used to evaluate the feasibility of a project or investment. A positive NPV indicates that the project is likely to be profitable. On the other hand, a negative NPV indicates that the project is unlikely to be profitable.
Hence, if NPV is positive, it means that the investment is a profitable one. The CCC or the Cash Conversion Cycle indicates how long it takes for a firm to convert its investment in inventory to cash by selling its products. If the CCC decreases, it implies that the company's cash cycle has been optimized and the company can free up capital for further expansion. On the other hand, if the CCC increases, it implies that the company's cash cycle has been prolonged and the company will need to devote more funds to working capital. When the firm implements projects with a positive NPV, the aggregate change in firm value would be positive since it generates value for the firm.
Therefore, when NPV is positive, it means that the investment generates value for the firm, thereby indicating that the CCC will reduce and the aggregate change in firm value would be positive.
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current events discussion- Ethics in International Business
The Initial Post should be composed of three Parts
EVENT - Summarize the Event and Its Global Relevance -Paraphrase (2020-2022)
Analysis - Identify the Players and Core Ideas
Implications - Conclusions – Relate the topics to Personal Experiences or Individual Ideas.
minimum of 300 words.
Event: The COVID-19 pandemic has had a significant impact on international business. The pandemic has disrupted supply chains, led to a decline in demand for goods and services, and caused financial hardship for businesses and individuals around the world.
The pandemic has also raised ethical concerns about the way that businesses operate in the global economy. For example, some businesses have been accused of price gouging and profiteering during the pandemic. Others have been accused of exploiting workers in developing countries who are producing goods that are essential for the global economy.
Analysis:
The COVID-19 pandemic has highlighted the importance of ethics in international business. Businesses that operate in a way that is ethical and responsible are more likely to be successful in the long run. Businesses that operate in an unethical way are more likely to face backlash from consumers, investors, and governments.
There are a number of ethical principles that businesses should follow when operating in the global economy. These principles include:
Respect for human rights: Businesses should respect the human rights of their employees and the people in the communities where they operate. This includes the right to freedom of association, the right to a fair wage, and the right to a safe and healthy workplace.
Environmental sustainability: Businesses should operate in a way that is environmentally sustainable. This means reducing their environmental impact and using resources efficiently.
Transparency: Businesses should be transparent about their operations and their impact on the world. This means disclosing information about their environmental impact, their labor practices, and their financial performance.
Implications:
The COVID-19 pandemic has shown that businesses have a responsibility to act ethically in the global economy. Businesses that operate in an unethical way are more likely to face backlash from consumers, investors, and governments.
Businesses that want to be successful in the long run need to adopt ethical principles and operate in a way that is responsible and sustainable. This means respecting human rights, operating in a way that is environmentally sustainable, and being transparent about their operations.
Personal Experiences or Individual Ideas:
I believe that businesses have a responsibility to act ethically in the global economy. I have seen firsthand the impact that businesses can have on the world, both positive and negative. I believe that businesses should use their power to make a positive difference in the world.
I believe that businesses can be a force for good in the world. They can create jobs, improve the lives of their employees, and make a positive impact on the environment. However, businesses can also be a force for harm. They can exploit workers, pollute the environment, and contribute to climate change.
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On May 17, 2022, Amazon completed its $8.5 billion of the MGM acquisition deal. MGM is a nearly century-old studio — with more than 4,000 film titles, 17,000 TV episodes, 180 Academy Awards and 100 Emmy Awards.
Provide an explanation as the type of diversification being pursued by Amazon (1 point).
How will economies of scope change at Amazon after the acquisition (4 points)?
Amazon has pursued concentric diversification, which refers to the expansion of the business into related product lines or services. This acquisition by Amazon allows the company to expand into the entertainment industry and broaden its reach.
Through this deal, Amazon now owns MGM, a movie production studio with a rich history of critically acclaimed and popular films, as well as a vast library of television shows and movies. By adding MGM to its portfolio, Amazon can now produce more exclusive and original content, giving them a competitive advantage over other streaming services.
Economies of scope are achieved when a company produces a range of goods or services using a shared set of resources. After the acquisition, economies of scope will change at Amazon. Amazon will be able to leverage its existing infrastructure, such as cloud computing and distribution networks, to improve MGM's production processes, lower costs, and increase efficiencies.
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