Answer:
C. the actual work performed for each activity should be evaluated to inform the next activity of the number of workers needed.
The risk-free rate of return is 4%, and the market return is 10%. The betas of Stocks A, B, C, D, and E are 0.85, 0.75, 1.20, 1.35, and 0.5 respectively. The expected rates of return for Stocks A, B, C, D, and E are 7%, 9%, 9.5%, 12.1%, and 14% respectively. Which of the above stocks would an investor be indifferent towards buying or selling?
Answer:
Stock D as their expected return matches the Capital Assets Price Models
Explanation:
We have to calcualte the CAPM for each stock and look which matches with the expected rate of return:
[tex]Ke= r_f + \beta (r_m-r_f)[/tex]
risk free = 0.04
market rate = 0.1
premium market = (market rate - risk free) 0.06
Stock A
beta(non diversifiable risk) = 0.85
[tex]Ke= 0.04 + 0.85 (0.06)[/tex]
Ke 0.09100 = 9.1%
Expected return: 7% it would prefer to sale
Stock B
beta(non diversifiable risk) = 0.75
[tex]Ke= 0.04 + 0.75 (0.06)[/tex]
Ke 0.08500 = 8.5%
Expected return: 9% it would prefer to purchase as it offer more
Stock C
beta(non diversifiable risk) = 1.2
[tex]Ke= 0.04 + 1.2 (0.06)[/tex]
Ke 0.11200 = 11.20%
Expected return: 9.5% it would prefer to sale
Stock D
beta(non diversifiable risk) = 1.35
[tex]Ke= 0.04 + 1.35 (0.06)[/tex]
Ke 0.12100 = 12.1%
Expected return: 12.1% Indifferent as it is mathces the CAMP the stock is neither overperforming nor underperforming
Stock E
beta(non diversifiable risk) = 0.5
[tex]Ke= 0.04 + 0.5 (0.06)[/tex]
Ke 0.07000 = 7%
Return = 14% It would prefer to purchase as it offer more
In the context of business ethics, a _____ perspective evaluates the degree to which the observed customs, attitudes, and rules within a business can be considered ethical.
Answer:
The correct answer is normative.
Explanation:
We know as business ethics the term that defines a corporate group that is formed by the norms, principles and values that are linked to the culture of the company. This set serves as a road map of the different actions that a business carries out. Its use provides several advantages, such as having the opportunity to create a better bond with society and to shape an invaluable asset that will represent the company both now and in the future. This type of ethics also applies to the private life of company executives.
On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specified a delivery date of March 1. The equipment was not delivered until March 31. The contract required full payment of $75,000 30 days after delivery. The revenue for this contract should be:________.recorded on April 30, 2021.
recorded on March 31, 2021.
recorded on January 15, 2021.
recorded on March 1, 2021.
Answer:
Option B-Recorded on March 31, 2021
Explanation:
The reason is that when the product is not actually delivered the company can not recognize the revenue just because the contract has been formed. So the company will only recognize the revenue when it will deliver its part to the customer which is the consideration (something that can be valued in $) delivery made to the customer. So the date that the consideration was paid to customer was the delivery receipt date which is March 31, 2021
Technician A says a fleet shop is usually connected with either a business that runs multiple vehicles or with equipment that is maintained and repaired in house. Technician B says government agencies such as a city or county would not be examples of fleet operations. Who is correct
After reading through the statements made by both the technicians, it can be concluded that the Technician A is absolutely correct about the significance of fleet operations.
What is the significance of fleet operations?Fleet operations can be referred to or considered as the operations carried in a small-sized departmental store dealing in the sell and purchase of products under any categories related thereto.
Fleet is a small center established by a firm in order to provide multiple operations of different kinds under one roof. It is similar to the formation of the local governments and its agencies operating at city or county-levels, however, only for the purpose of comparison.
Therefore, the significance regarding fleet operations has been aforementioned.
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Final answer:
Technician A is correct about fleet shops being connected to businesses or organizations with multiple vehicles or in-house maintenance. However, Technician B is incorrect; government agencies do qualify as examples of fleet operations. These agencies maintain fleets of vehicles and equipment that require systematic, expert maintenance.
Explanation:
Technician A is correct; a fleet shop is typically associated with a business or organization that operates multiple vehicles or maintains and repairs equipment in-house. Fleet operations often include the systematic and organized maintenance of a collection of vehicles or equipment, and it can relate to a variety of entities including private companies, service providers, and even government agencies. Technician B, however, is incorrect. Government entities such as city or county services certainly can be and often are examples of fleet operations. They maintain and manage various vehicles and equipment necessary for public services and personnel such as police cars, fire trucks, and public transportation. These agencies typically follow scheduled maintenance and repair protocols to ensure efficiency and safety of their operations.
Technicians in fleet shops are similar to mechanics and possess practical, hands-on knowledge that allows them to maintain and repair vehicles and equipment effectively. Their expertise is crucial for fleet operations to maintain continual service and avoid significant downtimes.
A company increases the price of its clock radios by 10 percent and the company's total receipts fall significantly. What term best describes the demand for its product
Answer:
Price elasticity of demand Relation
Explanation:
The reason is that the price and demand are inversely proportional to each other. If the price of the product increases the demand of the product will decrease and vice versa. So this means that if the organization wants to generate maximum profit then it will have to set a price that generate maximum demand which means which generates maximum profit. The Bugatti is very expensive and the result is that very fewer people own it in the world but the Mercedes with an above average price has customers in millions, Honda has more than million customers because it is priced average. So the thing is that the pricing matters in deciding how much of the total customers you want.
Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees. The market price of the common stock on that date was $25 per share and the option price was $20. The Black-Scholes option pricing model determines total compensation expense to be $627000. The options are exercisable beginning January 1, 2021, provided those key employees are still in Crane’s employ at the time the options are exercised. The options expire on January 1, 2022. The amount of compensation expense Crane should record for 2017 under the fair value method is:_______.
a. $0.
b. $207000.
c. $103500.
d. $310500.
The amount of compensation expense Crane should record for 2017 under the fair value method is $207000
Solution:
Given ,
Stock options for 63000 shares
$10 par value common stock
$25 per share and the option price was $20
Total compensation expense = $627000
627000/3= $207,000
$207,000 decrease
On March 14, Apple Corporation purchased 6,000 shares of Pear Inc. for $25 per share. There is no readily determinable fair value of Pear. On June 30, Pear declared an annual dividend of $0.40 per share. On August 14, Apple sold 4,000 shares of Pear for $29 per share less a brokerage fee of $225. The journal entry at the date of sale would include:__________.
a) a credit to gain on the sale of investments for $15,775.
b) a credit to gain on the sale of investments for $16,000.
c) a credit to gain on the sale of investments for $24,000.
d) a credit to gain on the sale of investments for $18,400.
Answer:
a) a credit to gain on the sale of investments for $15,775
Explanation:
The journal entry on the date of purchase of such shares in the books of Apple would be
Investments A/C Dr. 150,000
To Cash A/C 150,000
(Being investments purchased for cash)
On the date of receipt of dividend:
Cash A/C (0.40 × 6000) Dr. 2400
To Dividend Income 2400
(Being dividend received recorded)
Cash A/C (4000 × 29 - 225) Dr. 115,775
To Investments A/C (4000 shares × 25) 100,000
To Gain on sale of Investments 15,775
(Being investments sold at a profit recorded)
On December 31, 2017, Gonzalez Company granted some of its executives options to purchase 180,000 shares of the company's $10 par common stock at an option price of $50 per share. The Black-Scholes option pricing model determines total compensation expense to be $1,350,000. The options become exercisable on January 1, 2018, and represent compensation for executives' services over a three-year period beginning January 1, 2018. At December 31, 2018 none of the executives had exercised their options. What is the impact on Gonzalez's net income for the year ended December 31, 2018 as a result of this transaction under the fair value method?
a. $ 450,000 increase.
b. $1,350,000 decrease.
c. $ 450,000 decrease.
d. $0.
Answer:
Option C $450,000 decrease
Explanation:
The reason is that the cost to buy the shares in the market is lower than $50 per share so buying the shares at $50 per share is not benefiting the directors at all. This means that the liability which was calculated using the black scholes model was standing at $1350,000 for 3 years and $450,000 for a single year will not be waived off because the directors didn't exercised the option and are taking money benefits which means under fair value method the net income will decrease by $450,000 because this is the amount paid to directors.
The capability-building process:_______.a. requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence by learning to do the activity consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity. b. entails establishing a new department with primary responsibility for developing the expertise to give the company the needed core competencies and capabilities. c. stands a better chance of succeeding if a company employs a traditional functional organization structure. d. is made much easier if a company abstains from outsourcing important value chain activities. e. aims at turning the company's distinctive competencies into core competencies.
Answer: Requires first developing the ability to do something, however imperfectly or inefficiently; second, translating this ability into a competence by learning to do the activity consistently well and at an acceptable cost; and then continuing to polish and refine its know-how in an effort to further improve its performance, ideally striving to match or beat rivals in performing the activity.
Explanation:
Capacity building involves an individual/organization learning to carry out their job task by starting with failures and successful outcomes, and continuing learning and attempting carrying out that task until perfection nearly attained when it comes to carrying out that job type.
Recent research into the relationship between ethical behavior and an employee's pay discovered that most companies base pay on ________. guidelines presented in books on philosophy and religion entitlement and custom rather than on ethical behavior performance metrics and ethical behavior ethical behavior instead of entitlement and custom
Answer:
Entitlement and custom rather than on ethical behaviour.
Explanation:
Employers have a moral duty to look out for the well being of employees. It is not a question only of fair pay and suitable working conditions, there should be a real and long lasting concern for the welfare of employees.
The importance of connecting pay to performance is a suitable topic when discussing ethics. A lot of companies do not link pay to ethical behavior but pay is based on entitlement and custom.
Label each scenario with the term that best describes it. Use the midpoint method when applicable. Marcel Duchamp was a famous artist prior to his death, and was known for his Dada artwork, including works such as "Soft Toilet". All of his original sculptures and paintings go on sale. Paul owns a Tim Horton's, a famous donut and coffee franchise. He is willing to sell as many maple glazed donuts as customers want at a price of $1.00 each, but he refuses to sell any donuts for any price lower than $1.00. The price of facial tissues rises from $2.85 per box to $3.15. As a result, P&G increases production from 15 million boxes to 25 million boxes of facial tissue. With the school semester starting for both high school and college, Papermate chooses to increase production of pens from 38 million to 42 million after global prices of writing instruments increase from $1.90 a package to $2.10 a package. Bright Ideas increases its production of lightbulbs by 15% after a 400% increase in the price of fluorescent bulbs.a. elastic supply.b. perfectly inelastic supply.c. perfectly elastic supply.d. inelastic supply.e. unit-elastic supply.
Marcel Duchamp's artwork represents perfectly inelastic supply. Tim Horton's donuts represents perfectly elastic supply. P&G's tissue case represents elastic supply. Papermate's pens scenario represents inelastic supply and Bright Ideas' case represents unit-elastic supply.
Explanation:The scenario with Marcel Duchamp's artwork represents b. perfectly inelastic supply - as the quantity available of the original sculptures and paintings won't change regardless of their price (they cannot be reproduced). The second scenario with Tim Horton's shows c. perfectly elastic supply - the owner is willing to sell unlimited quantity of donuts at $1.00, but none below this price. The third scenario where the price of facial tissues increases causing an increase in production represents a. elastic supply - as the quantity supplied of tissues increases a lot due to increase in prices. The fourth scenario with Papermate is d. inelastic supply - as the production of pens increases very slightly even with an increase in price. The last scenario of Bright Ideas is an example of e. unit-elastic supply - as percentage change in quantity supplied is equal to percentage change in price.
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For Identified supply elasticities using given scenarios: Paul's donut supply is c., perfectly elastic, P&G's tissue supply is a., elastic, Papermate's pen supply is d., inelastic, Bright Ideas' lightbulb supply is a., elastic.
Here are the appropriate terms for each scenario using the midpoint method when applicable:
Paul (selling donuts for $1.00 each, refusing lower prices):
Perfectly elastic supply. Paul is willing to sell as many units as needed at exactly $1.00, indicating he won't adjust the quantity supplied for any price change, qualifying the supply as perfectly elastic.P&G (facial tissues production):
Elastic supply. The significant increase in production (from 15 million to 25 million boxes) in response to a moderate price increase (from $2.85 to $3.15) indicates a more than proportionate change in quantity supplied.Papermate (pen production):
Inelastic supply. A smaller increase in production (from 38 million to 42 million pens) in response to the price increase suggests less sensitivity to price, indicating an inelastic supply.Bright Ideas (lightbulbs):
Elastic supply. A 15% increase in production following a 400% price rise indicates significant responsiveness to price changes.A college professor wants to know if the university students in the Unites States will find the new textbook that he has authored to be interesting and useful. He chooses all marketing majors at the school he teaches as his sample. He believes that this group of students will be representative of the university student population in the United States. In this scenario, the professor is most likely using:_______. a. area sampling.b. judgment sampling.c. cluster sampling.d. quota sampling.e. census sampling
Answer:
judgment sampling.
Explanation:
Judgementbsampling is also called expert sampling is a type of sampling that is based on the assumptions made by an expert. The feedback from this type of sampling tends to be biased.
This is a subjective method of sampling that relies on the researcher's personal judgement in choosing sample from the population.
In this instance the professor chooses only marketing majors as his sample to get feedback on his new textbook. His personal beliefs is that this sample will represent the student population in the United States.
This is however not objective as all the sample members are marketing majors.
The auditor of a public company is assessing the value of all the intangible assets owned by the company. Which of the following would most likely be included in this assessment?A. The company's headquarters
B. The company's brand equity
C. The company's cash reserves
D. The company's plant and equipment
Answer:
B. The company's brand equity
Explanation:
Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery. Examples of intangible assets include patent brand names, trademarks, or and copyright.
Intangible assets have a use-life of more than one year. They can be created or acquired, just like tangible assets. From the list in the case, The company's cash reserves, company's plant and equipment, and company headquarters are tangible assets because they have a physical presence.
Wanting to make the most effective use of your time, you schedule the weekly staff meeting at 9:00 A.M. According to suggestions in the text, this is an effective time for a weekly staff meeting.
a. True
b. False
Suppose Chris and Laura attend a charity benefit and participate in a silent auction. Each has in mind a maximum amount that he or she will bid for an oil painting by a locally famous artist. This maximum is called of:_________. a. deadweight loss. b. willingness to pay c. consumer surplus. d. producer surplus.
Answer:
b. willingness to pay
Explanation:
Willingness to pay is the term used for the economic value of the good to a person willing to buy under some given conditions. In this situation there is a silent auction which requires the evaluation of each participant for the price they think reasonable. The maximum amount that he or she will bid for the painting in absence of any comparison of prices will based their willingness to pay for it.
In financial management, risk is referred to as the environmental factors that may affect a business adversely. internal factors that may disrupt the smooth functioning of a company. degree of uncertainty about the actual outcome of a decision. various strategies implemented by managers to increase returns.
Answer:
Option C The degree of uncertainty about the actual outcome of a decision.
Explanation:
The reason is that risk is the vulnerability of an desired outcome and which can be measured. So if toss a coin there are 50% chances that head will appear and I will loose money and 50 percent chances that tail will appear and I win money. So undesired outcome here is head appearing because I will loose money and it has 50% chances. So risk result in undesired outcome in an uncertain environment.
c. Productive efficiency occurs when a good or service (such as the distribution of tickets) is produced at the lowest possible cost. Is this an efficient way to distribute the tickets?
Answer: No
Explanation:
not an equitable way to distribute the tickets because some students who really want them may be unable to go and get them.
True or False: The LIFO Conformity Rule states that if the LIFO method is used for income tax purposes, it can not be used for financial statement purposes.
Answer:
FALSE
Explanation:
The LIFO conformity rule requires taxpayers that elect to use LIFO for tax purposes to use no method other than LIFO to ascertain the income, profit, or loss for the purpose of a report or statement to shareholders, partners, or other proprietors, or to beneficiaries, or for credit purposes.
Hence the IRS requires that the same method for income tax purpose be used for financial statement purpose
Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had been profitable up to this year. How should the amounts related to the carryback be reported in the 2018 financial statements?
The refund claimed should be shown as a benefit due to loss carryback in 2018.
Answer:
The refund claimed should be shown as a benefit due to loss carryback in 2018.
Explanation:
Since Tanner, Inc. incurred a financial and taxable loss for 2018. and decided to use the carryback provisions as it had been profitable up to this year, the amounts related to the carryback should be reported in the 2018 financial statements as a benefit due.
Tax loss carryback is when a corporation retrospectively adjusts its tax returns for prior periods if it incurs a net operating loss (NOL) in current period.
The loss carryback generates a tax refund for the business because it reduces previous year tax liability. After the carried back loss is applied, it will be as though the business overpaid taxes the previous year; which will now be shown as a benefit in the current year
Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.
Answer:
frictionally; structurally
Explanation:
Frictional unemployment arises when employees are changing when one job to another in the same economy. Workers who leave a job in search of a better paying job or another job are said to be frictionally unemployed. Frictional unemployment also occurs when skilled graduates are seeking work for the first time. Jones is frictionally unemployed because his skill will enable him another job in that industry. He can be compared to some who have quit his job search for another.
Structural unemployment is unemployment as a result of changes in technology or the relocation of industries. The skills possessed by workers become irrelevant, making them unemployable. Jones is structurally unemployed because no sector in the economy needs his skills.
Firms are sometimes able to engage in price discrimination over time. Give an example of this form of price discrimination. A typical example of price discrimination over time would be when a companyA. charges higher prices for flat- screen plasma televisions when they are first introduced and lower prices later.B. charges men higher prices for DVD players than women.C. segments the market to charge more price-sensitive customers higher prices for digital cameras than less price-sensitive customers.D. buys iPods in one market at a low price and resells them in another market at a higher price.E. charges lower prices for hardcover editions of books than for paperback editions that are published months later.
Answer:
A. charges higher prices for flat- screen plasma televisions when they are first introduced and lower prices later.
Explanation:
Price discrimination is defined as a situation where a seller of a commodity sells the same commodity at differy prices to different buyers. It could be a different price for each unit sold, or a different price to different group of people.
Price discrimination over time is when a company sells a product for a price at one time and changes the price at another time.
This is exemplified by companies selling flat screen televisions at high price when they came out newly, and selling bat higher price later on.
When a customer places an order (on account) for a certain product, what should be done before the order is checked for inventory availability? The customer's available credit should be checked. The sales order should be created and written to a file. Shipping should be notified of an order in process. A picking list should be generated for the warehouse.
Answer:
The correct answer is The customer's available credit should be checked.
Explanation:
A credit is a financing operation where a person called 'creditor' (usually a financial entity), lends a certain monetary figure to another, called 'debtor', who from then on, guarantees the creditor that he will return this requested amount in the previously stipulated time plus an additional amount, called 'interest'.
According to some authors in economics, credit represents a change that acts in time, rather than in space, so it is also considered "to alternate money from the present, for money in the future." The word derives from the Latin credititus, which means ‘trust’, therefore, a credit is the right of the creditor to receive from the debtor, the amount borrowed.
Jack and Jill have a tenancy in common in an apartment building. After ten years of ownership, Jill dies unexpectedly. On Jill's death, Jill's interest in the property will: a. pass to Jack as tenant in common. b. pass to Jill's heirs. c. pass to the state. d. pass to Jack's heirs.
Explanation:
Let us understand the meaning of tenancy: It is the "possession of any property which might be land or building and get connected as tenant".
In contrast, ownership means the property belongs that person alone or in partnership.
Understanding the above terms, We can say, Jack and Jill have been a tenant and after ten years, Jill dies. So the rest of the interest in the property will definitely go to his heirs only.
It cannot be passed to Jack because Jill's interest will not be paid by other person except for Jill's heirs. Jack heirs are no way responsible or own the property of Jack.
Potter’s accountant believes the financial statements will be misleading if the probable loss contingency is not disclosed. How much should be disclosed, and how much should be accrued in Potter’s financial statements for the current year?
Complete Question:
Potter Co. has the following contingencies, all resulting from lawsuits in progress during the current year:
Probable loss contingency $1,500,000; Reasonably possible loss contingency 500,000; Probable gain contingency 700,000; Reasonably possible gain contingency 300,000.
Potter's accountant believes the financial statements will be misleading if the probable loss contingency is not disclosed. How much should be disclosed, and how much should be accrued in Potter's financial statements for the current year?
A. Disclosed $1,000,000 gain
Accrued $1,500,000 loss & $500,000 loss
B. Disclosed $500,000 loss & $1,000,000 gain
Accrued$1,500,000 loss & $700,000 gain
C. Disclosed $2,000,000 loss & $1,000,000 gain
Accrued $1 ,500,000 loss
D. Disclosed $500,000 loss & $300,000 gain
Accrued $1,500,000 loss
Answer:
Option C Disclosed $2,000,000 loss & $1,000,000 gain
Accrued $1 ,500,000 loss
Explanation:
All the gains that are certain which means that are more than 95% chances of gain then it must be realized as gain otherwise it must be ignored. In this case, there is no gain that is reasonably certain. So the realized gain amount is zero. On the other hand, the liabilities must be realized when the chances of occurrence of the outcome is probable or certain which in this case is $1,500,000 and must be recognized as increase in liability.
Furthermore, the gains which are reasonably probable and possible gains must be disclosed in the financial statement. In this case the probable and possible gain are $700,000 and $300,000. This means that the amount $1,000,000 must be recognized as possible gain. And on the other hand, possible and probable losses must be disclosed in the financial statement which in this case are $1,500,000 probable losses and $500,000 possible losses. So the amount that must be disclosed as losses are $2,000,000.
The substitution effect: Multiple Choice predicts that taxpayers will work harder to pay for consumer products when tax rates increase. is one of the effects considered in static forecasting. results in the government collecting more aggregate tax revenue than under the income effect.
Answer:
None of these is correct
Explanation:
The substitution effects is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises. The substitution effect is based on the idea that as prices rise, consumers will replace more expensive items with cheaper substitutions or alternatives, assuming income remains the same.
In your college town, real estate developers are building thousands of new student-friendly apartments close to campus. If you want to pay the lowest rent possible, should you hope that demand for apartments is elastic or inelastic?
Answer:
Elastic
Explanation:
Elasticity is an economic concept used to measure the change in the aggregate quantity demanded for a good or service in relation to price movements of that good or service. A product is considered to be elastic if the quantity demand of the product changes drastically when its price increases or decreases. Conversely, a product is considered to be inelastic if the quantity demand of the product changes very little when its price fluctuates.
Final answer:
If you want to pay the lowest rent possible, you should hope for elastic demand for apartments. Elastic demand means that small changes in rent lead to large changes in the quantity of apartments demanded, which can result in competitive pricing and lower rents.
Explanation:
To determine if you should hope for elastic or inelastic demand for apartments to pay the lowest rent possible, it's important to understand that in the real estate market, elasticity refers to how much the demand or supply responds to changes in price. If the demand for apartments is inelastic, this means that changes in rent will have a small effect on the quantity of apartments demanded. On the other hand, if the demand is elastic, small changes in rent could lead to a significant change in the quantity demanded.
Considering the concepts of supply and demand, you should hope for elastic demand for apartments. If demand is elastic, then as new apartments are built and add to the supply, even a small reduction in rent could result in a large increase in the quantity of apartments demanded. This scenario is beneficial for you, as it leads to a competitive market where landlords may lower rents to attract tenants, thereby ensuring you pay less for rent.
Moreover, over time, if the supply curve is more elastic, it would mean that more apartments can be built or converted from other uses in response to rent changes. This increased supply would help to keep rents lower even as demand rises. Elastic supply implies that when developers see the opportunity to make a profit due to increased rent, they will be more likely to build new apartments, which increases supply and can help to stabilize or even lower the rent.
A small company has developed a specialized software product that it configures especially for each customer. New customers usually have specific requirements to be incorporated into their system, and they pay for these to be developed and integrated with the product. The software company has an opportunity to bid for a new contract, which would more than double its customer base. The new customer wishes to have some involvement in the configuration of the system. Explain why, in these circumstances, it might be a good idea for the company owning the software to make it open source
Answer:
It might be a good idea for the company to make the software open source because it will lead to reduction of cost of production and the effort that goes into it. The task of customizing the software for each individual customers raises development cost and is a tough task to accomplish.
In term of making the software an open source, the source code will be provided to the customer and they themselves can make the desired changes in the software. This will considerably reduce their prices and also expand their market in the areas of companies with lower budgets.
Final answer:
Making software open source allows a small tech company to foster collaboration and customization, establish a community-driven approach, and circumvent monopolistic market dynamics, providing both competitive advantages and alignment with diverse stakeholder interests.
Explanation:
In considering whether a software company should make their product open source, it's important to understand the dynamics of the software industry. Open source operating systems like Linux have significantly impacted the economics of high tech by providing a freely available alternative to proprietary systems, disrupting traditional business models. The history of computing shows us a shift from tightly controlled systems produced by companies like IBM and Microsoft to more collaborative and open environments.
For a small software company with specialized products, making software open source can be beneficial, particularly when entering a market with significant barriers or working with customers who require customization. It allows for greater collaboration, adaptation to specific needs, and a community-driven approach to development and problem-solving. Considering the shift towards larger firms with the vast reach facilitated by new technologies, forming a community around a product can provide a competitive edge and help maintain a foothold in markets increasingly dominated by larger players.
Lastly, the history of antitrust cases in the software industry demonstrates the dangers of monopoly power and the importance of promoting competition. By adopting an open source model, a company may preemptively address concerns around proprietary dominance and encourage a healthier, more competitive market. This strategy could align with the interests of various stakeholders, including customers, government agencies, and industry participants, who may all have a stake in the broader software ecosystem.
A report listing the monthly sales figures for the last three years is an example of a(n) _____. a) case study b) diagnostic report c) laboratory report d) informational report e) analytical report
Answer:
The correct option is informational report
Explanation:
Analytical report is business report that shows the quantitative as well as qualitative performance information with respect to a business being analysed, in order that management may reach conclusions so as evaluate business strategies.
Case study is more broader in that it portrays all the areas of the business, ranging from performance, strategy,analysis,competitive position,share of market segment,cultures,values,rituals and so on.
Above,my choice of answer is informed by the fact that informational report merely shows data or information without further analysis such as the monthly sales figures,without providing any detailed explanation
Suppose the country of Ceria and Lithinia imposed tariffs on imports from all countries, and then they set up a free trade area, scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world. Now, Ceria begins to import sugar from Lithinia. However, Ceria had previously been importing sugar from another country, Cadnia, which produced sugar more cheaply than Ceria or Lithinia. This is an example of
Answer:
trade diversion
Explanation:
Trade diversion results from changing an efficient supplier or trading partner for a not so efficient trading partner. This change usually results from trade agreements or customs unions like NAFTA (or USMCA) or the European Union that benefit less efficient producers.
Trade diversion results in concentrating production in countries with high opportunity costs that do not possess real comparative advantages, but rather political advantages.
Strategy at a ________ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers. 1. functional 2. business unit 3. corporate 4. divisional
Answer:
2. business unit
Explanation:
Strategy refers to a future course of action formulated now, for efficient operations and fulfillment of long term goals. It refers to ways and methods a business firm shall employ in the near future.
Strategy at the business level is more concerned with the quality of products and services offered by a business and methods via which good relations can be maintained and strengthened with customers.
Business level strategy is focused upon providing best value to customers so as to increase sales volume and maximize profits, alongside providing customer satisfaction.