Philip Morris bought Miller Brewing and used its marketing expertise to improve Miller's market share. This justification for diversification is best described as _________.A) utilizing common infrastructures.B) capitalizing on core competencies.C) reducing corporate risk.D) using portfolio analysis.

Answers

Answer 1

Answer:

The correct answer is the option B: Capitalizing on core competencies.

Explanation:

To begin with, in the field of business when we talk about "core competencies" we use the term to refer to something that a company can add to its business strategy with the purpose to add more value to the final benefit that the final consumer will obtain from the consumption of the good. Therefore that it means that capitalizing on core competencies refers to the situation where a company decides to add a superior value to its product by achiving diversification in its strategy and more specifically in this case, in its marketing campaign so that is why that Philip Morris will capitalize on core competencies by using marketing expertises from the other firm that has just bought.


Related Questions

Suppose a 95% confidence level for u has been constructed. If it is decided to take a larger sample and to decrease the confidence level of the interval, then what is the resulting interval width?

Answers

Answer:

be narrower than the current interval width

Explanation:

For each of the following statements, indicate whether it applies to: the cash basis of accounting (cash basis) the accrual basis of accounting (accrual basis) both the cash and accrual basis of accounting (both) neither the cash nor the accrual basis of accounting (neither). Your response should be cash basis, accrual basis, both, or neither. Statement: An easier method of accounting to follow

Answers

Both cash accounting and accrual accounting are easier accounting methods.

What is accounting?

The process of documenting, organizing, measuring, analyzing, communicating, and comprehending financial information is known as accounting.

Cash accounting records income as it is received and expenses as they are incurred. Accrual accounting is used to record both when income is made and when expenses are incurred.

Therefore, cash accounting and accrual accounting are easier method of accounting to follow statement.

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Bakersfield Corp. pays income tax at an average rate of 30 percent. This year its revenue is $124,000 and its expenses are $82,000. The adjusting entry to record the income tax expense will:

Multiple Choice

decrease net income by $42,000.


increase shareholders' equity by $12,600.


decrease liabilities by $12,600.


decrease shareholders' equity by $12,600.

Answers

The adjusting entry to record the income tax expense for Bakersfield Corp. will decrease net income by $42,000. Option A is the correct answer.

The adjusting entry to record the income tax expense for Bakersfield Corp. will decrease net income by $42,000.

The income tax expense is calculated by applying the applicable tax rate to the taxable income. In this case, Bakersfield Corp. has revenue of $124,000 and expenses of $82,000, resulting in a taxable income of $42,000 ($124,000 - $82,000).

Since Bakersfield Corp. pays income tax at an average rate of 30 percent, the income tax expense will be 30 percent of the taxable income:

Income tax expense = Taxable income x Tax rate

= $42,000 x 0.30

= $12,600

Adjusting entries are made at the end of an accounting period to ensure that revenues and expenses are properly recognized. In this case, the adjusting entry will decrease net income by the amount of the income tax expense.

This adjustment reflects the company's obligation to pay income tax and reduces its reported net income.

Therefore, the correct option is: "Decrease net income by $42,000."

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Economic ordering quantity with safety stock (LO5) Diagnostic Supplies has expected sales of 84,100 units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

a. What is the economic order quantity?
b. What is the average inventory? What is the total carrying cost?

c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Answers

Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?

Explanation:

Answer:

"Diagnostic Supplies has expected sales of 84,100" units per year, carrying costs of $5 per unit, and an ordering cost of $10 per order.

Explanation:

Which of the following is the roadmap of where the business is going?

Answers

The road-map which tells where the business is going is a Business plan.

A business plan is basically a map which visualize a goal desired outcome and draws out the steps needed to reach the goals.

In other word, a business plan shows where a company is going and steps required to get there.

A typical business plan will state likely Challenges, Defined Objectives, Courses of Action, Initiatives, Mode of operation etc.

In conclusion, every successful business that exists today started with well-drawn business plan.

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Lilly Company had sales of $355,000, variable costs of $172,000, and direct fixed costs totaling $118,000. The company's operating assets total $80,000, and its required return is 7.40%. How much is residual income

Answers

Answer: $59080

Explanation:

Firstly, we need to calculate the net operating income which will be:

= $355000 - $172000 - $118000

= $65000

Then, we calculate the desired income which will be:

= $80000 × 7.40%

= $5920

Residual income will be:

= Net operating Income - Desired income

= $65000 - $5920

= $59080

Which one of the following statements is correct concerning the concept of materiality?

a. Materiality is determined by reference to guidelines established by the AICPA.
b. Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
c. Materiality depends on the nature of an item rather than the dollar amount.
d. Materiality is a matter of professional judgement.

Answers

Answer:

D) Materiality is a matter of professional judgement

Explanation:

Someone has offered to buy you a financial instrument that has the following cash flows:

- You will not receive any cash for the first five years. The first time you will receive a cash flow will be at the end of year 6. You will receive $100 at the end of year 6, $200 at the end of year 8, and $300 at the end of year 10.
- You will receive another payment of $100 at the end of year 11, and the payment will grow at a rate of 6% forever.
- You will need to pay a service fee. The service fee is as follows: you will pay $100 each year from year 1 to year 5 (i.e. you will make 5 payments in total. The first payment will occur at the end of year 1, and the last payment will occur at the end of year 5)

Suppose that the discount rate is 10%. How much this financial instrument is worth to you?

Answers

The financial instrument is worth $1530.85

How to calculate the worth of the Financial Instrument?

The value of the financial instrument is the present value of the future cash flows. To find the present value, we need to discount each cash flow to the present using the discount rate.

The first cash flow of $100 at the end of year 6 is worth $100 / (1.1)^6 = $67.96 in present value.

The second cash flow of $200 at the end of year 8 is worth $200 / (1.1)^8 = $120.67 in present value.

The third cash flow of $300 at the end of year 10 is worth $300 / (1.1)^10 = $162.89 in present value.

The fourth cash flow of $100 at the end of year 11 and growing at a rate of 6% forever is an annuity. To find its present value, we can use the formula PV of annuity = A / (r - g), where A is the annual payment, r is the discount rate, and g is the growth rate. In this case, A = $100, r = 0.1, and g = 0.06, so the present value of the annuity is $100 / (0.1 - 0.06) = $1,666.67

The total present value of the cash flows is $67.96 + $120.67 + $162.89 + $1,666.67 = $1917.29

We also need to subtract the present value of the service fee, which is $100/year for 5 years. The present value of the service fee is $100 x (1 - (1/1.1)^5) = $386.44

Therefore, the financial instrument is worth $1917.29 - $386.44 = $1530.85

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Your best friend just purchased a new house and is planning to buy a homeowner's insurance policy. Based on what you learned in this section, which of the following does a typical policy not cover?

Answers

Answer:

flood coverage

Explanation:

Furniture, electronics, clothing, and other personal items in a basement are not covered under a flood insurance policy.

Answer:

you own stuff

Explanation:

Volunteer Corporation reported taxable income of $490,000 from operations this year. The company paid federal income taxes of $102,900 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The land’s fair market value was $120,500 and its tax and E&P basis to Volunteer was $55,500. Rocky assumed a mortgage attached to the land of $24,100. The company had accumulated E&P of $934,000 at the beginning of the year.

a. Compute Volunteer’s taxable income and federal income tax.
b. Compute Volunteer's current E&P before the distribution.
c. Compute Volunteer’s accumulated E&P at the beginning of next year.
d. What amount of dividend income does Rocky report as a result of the distribution?
e. What is Rocky’s income tax basis in the land received from Volunteer?

Answers

From the information given,

Federal Income Tax = $138,750 Current E& P for the year = $ 416,250Accumulated E&P at the beginning of the next year = $ 1,253,850Rocky’s Dividend Income Reported = $ 96,400Rocky’s Income Tax basis = $ 120,500

The calculations are given as follows

Federal Income Tax:                      

Taxable income from operations                                           $490,000    

Add: Gain on the distribution of land

                                                     ($120,500 - 55,500) =             65,000

Total taxable income                                                                 $555,000

Federal Income Tax ($555,000 * 25%)                           =         $138,750

Volunteers current E&P

Taxable income                                                                           $555,000

Subtract: Federal Income Tax                                                      $138,750

Adjustment for gain on distribution Of land                                 $          0

Current E&P before distribution                                                   $416,250

Volunteers E&P at the beginning of Next Year

Current E&P                                                                                  $ 416,250

Subtract: Fair market value of land distributed

in the previous year                                                                      $120,500

Add: Mortgage assumed by rocky                                                 $24,100

CE &P after distribution                                                                 $319,850

Accumulated E&P, beginning of current Year                            $934,000

Accumulated E&P, beginning of Nex Year                               $1,253,850

Rocky reports a dividend income given as:
Fair Market Value of Land (-) Liability
That is: 120,500 - $24,100

Dividend income = $ 96,400

($124,500) income tax basis in the land equals its fair market value

Income Tax basis = Fair Market Value of Land = $ 120,500

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managerial accounting connect assignment 1

Answers

Managerial accounting is a process of demonstrating the financial situation of a company through financial data and reports for a period.

What are the benefits of accounting for a business?

Accounting contributes to managerial decision-making that is more focused and aligned with the real financial situation and needs of the company, through reports that allow the manager to analyze, organize, control and better correct organizational finances.

Therefore, management accounting is a tool that contributes to management through accounting reports and projections that help in focused decision making.

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Please submit your idea for a practical, innovative, and marketable product or service (it’s just for a project)

Answers

Um...I decided to share these ideas because they are an upgrade of the things we use in daily life. These inventions make things more fun.

Banana skin caution wet floor signs. Fun caution signs shaped like slippery bananas. ...

Basket ball hoop over trash can. Trash cans where you can slam dunk your trash. ...

Create your own 6-pack machine. Machines where you can pick your own 6-pack. ...

Rechargeable USB batteries. Batteries you can charge via USB. ...

Slides beside stairs.

Sunglasses with solar-powered fans. ...

a TV channel that only plays commercials. ... (for stores)

eva always wanted to be a veterinarian

Answers

Good for Eva then. lol

6. Determine the estimated sales if 40 contacts are made. 17. FILE A recent article in Bloomberg Businessweek listed the "Best Small Compa- nies." We are interested in the current results of the companies' sales and earnings. A random sample of 12 companies was selected and the sales and earnings, in millions of dollars, are reported below. Company Papa John's International Applied Innovation Integracare Wall Data Davidson & Associates Chico's FAS X Sales Earnings ($ millions) ($ millions) $89.2 18.6 18.2 71.7 58.6 46.8 $4.9 4.4 1.3 Company Checkmate Electronics Royal Grip M-Wave Serving-N-Slide 8.0 6.6 Daig 4.1 Cobra Golf X M Sales Earnings ($ millions) ($ millions) $17.5 11.9 19.6. 51.2 28.6 69.2 $2.6 1.7 3.5 8.2 6.0 12.8 Let sales be the independent variable and earnings be the dependent variable. a. Draw a scatter diagram. b. Compute the correlation coefficient. c. Determine the regression equation. d. For a small company with $50.0 million in sales, estimate the earnings. orting in several rec​

Answers

a The scatter diagram is attached .

b The correlation coefficient is 0.77. This indicates that there is a strong positive linear relationship between sales and earnings.

b The regression equation is y = 0.09x + 2.2. This equation can be used to predict earnings from sales.

d If a small company has $50.0 million in sales, the estimated earnings are $41.2 million.

How to explain the working

Enter the data into a spreadsheet.

Company Sales (millions of dollars) Earnings (millions of dollars)

Papa John's International 89.2 18.6

Applied Innovation 18.2 4.4

Integracare 71.7 1.3

Wall Data 58.6 4.9

Davidson & Associates 46.8 4.6

Chico's FAS 42.0 2.6

Checkmate Electronics 36.0 2.2

Royal Grip 30.0 1.7

M-Wave 24.0 1.5

Serving-N-Slide 18.0 1.3

Daig 12.0 1.1

Cobra Golf 6.0 0.8

Step 2: Use the "Scatter" function to create a scatter diagram.

The scatter diagram shows that there is a positive linear relationship between sales and earnings.

Use the "Correlation" function to calculate the correlation coefficient.

The correlation coefficient is 0.77. This indicates that there is a strong positive linear relationship between sales and earnings.

Use the "Regression" function to calculate the regression equation.

The regression equation is y = 0.09x + 2.2. This equation can be used to predict earnings from sales.

Substitute 50 for x in the regression equation to calculate the estimated earnings.

When x = 50, y = 0.09 * 50 + 2.2 = 41.2.

Therefore, if a small company has $50.0 million in sales, the estimated earnings are $41.2 million.

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6. Determine the estimated sales if 40 contacts are made. 17. FILE A recent article in Bloomberg Businessweek

An example of a S.M.A.R.T. Financial Goal is
a.I will save a total of $500 for a mountain bike by placing $50 in a savings account each month beginning on May 1, 2023 and ending on February 1, 2024.
b.I will save $1,000 for a new car by June 2024.
c.I will save money for my 1st year of college to spend on entertainment, like concerts.
d.I will tell my mom to save a total of $1,000 for me so I can have spending money at our family vacation in Paris.

Answers

The only example of a S.M.A.R.T. financial goal is option A - "I will save a total of $500 for a mountain bike by placing $50 in a savings account each month beginning on May 1, 2023, and ending on February 1, 2024." Option A

When it comes to setting financial goals, it's important to make them S.M.A.R.T. - Specific, Measurable, Attainable, Relevant, and Time-bound. This ensures that you have a clear target to work towards and a plan to achieve it. Out of the given options,

This goal is specific as it clearly outlines the amount to be saved and the purpose of the savings. It is measurable as the goal is broken down into smaller monthly savings targets. It is attainable as the amount to be saved each month is reasonable and fits within the individual's budget. It is relevant as the savings are going towards a specific item that the individual desires. Finally, it is time-bound as it has a clear start and end date.

Setting S.M.A.R.T. financial goals is an important step towards achieving financial success. It's crucial to remember that goals should be personalized to fit your individual circumstances and priorities. By setting achievable goals, creating a plan, and sticking to it, you can take control of your finances and work towards a brighter financial future. Option A

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in order to open a discretionary cash account, all of the following are required except: a signature of manager on new account form b signed trading authorization c signed customer's agreement d completed customer new account form

Answers

In order to open a discretionary cash account, all of the following are typically required, including-

A signed customer's agreement

A completed customer new account form

A signed trading authorization

However, depending on the policies and procedures of the financial institution or brokerage firm where the account is being opened, the first item listed—"a signature of manager on new account form"—may or may not be necessary. Some institutions might require a manager's signature on all new account forms, whereas others might only do so under specific conditions (such as for high-risk or high-value accounts).

There is no exception, so that is the right response to this question. The manager's signature on the new account form may or may not be necessary depending on institutional policies, but all of the items on the list are typically necessary.

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00 For Market failures means that the market has not achieved its optimum production outcome. This means that it has not produced the correct quantity of goods and services. QUESTION 1 Conduct a research to any small business that is manufacturing goods in your community. Make an appointment to interview the owner for the purpose of collecting the information using the questionnaire below. 1.1 General information: ● Name of the firm / business Specify the type of goods or service ● ● Position of the person interviewed ● Date of the interview 1,2 Explain briefly the negative impact the following factors have in your business. (10) Lack of information: ● Price discrimination Immobility of factors of production with special reference to: Physical capital Structural changes ● ● (1) ● (1) (1) (1) [14] QUESTION 2: Interview 3-4 community members that reside near the business you have visited. 2.1 Ask them to name any TWO negative externalities and TWO positive externalities caused by the local business, (2 x 2) (4) 2.2 Request them to list any TWO characteristics of public goods. (2 x 1) (2) 2.3 Use the negative externality and positive externality graphs to explain the impact this business have to the society (10) [16]​

Answers

The first step in researching a small business in your neighborhood is to find a suitable nearby manufacturing company.

Once you do, contact the manager or owner to arrange an interview. Gather general information during the interview, such as the name of the company or business, what types of products or services they provide, the interviewer's position, and the time and date of the interview.

Then, focus on the detrimental effects different situations can have on the company. Briefly describe the impact on business of informational gaps, price discrimination, immobility of production variables (with a focus on physical capital), and structural changes.

Interview three to four locals who live close to the establishment you just visited. Ask them to list two unfavorable and two beneficial externalities brought about by the neighborhood business. Ask them to add two properties of public goods to the list as well.

Finally, use the data from the interviews to create graphs showing the positive and negative externalities of business on society. These infographics will graphically describe the costs and benefits that the company's neighborhood has.

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QUESTION 4: PROGRESS REPORT On the 20th of April 2023, The campus manager, Mr Manoto, requested the secretary in the SRC office, to compile a report on the progress of the revival day planning. In your report tasks that are completed are invitations for special guests and booking of live performers; the task committee is still busy with finalizing the design of the banners and T-shirt and sports bottle printing. Due to overspending on budget, you still have not booked catering and security for the day. Your report must be in memo format. ​

Answers

A sample memo based on the given question prompt is given below:

The Memo

Memorandum

To: Mr. Manoto, Campus Manager

From: SRC Office Secretary

Date: April 20th, 2023

Subject: Progress update for Revival Day planning

Esteemed Mr. Manoto,

Please find below a status report detailing advancements made in the preparations of the upcoming Revival Day ceremony. We have accomplished issuing invitations to prominent guests and securing prominent musical acts. Our committees are putting the finishing touches to banner design, T-shirt outfits, as well as customizing sport water bottles.

Conversely, budgetary concerns impede us from booking security or catering caterers essential for event operations. However, we are investigating ways to cut expenses while still delivering quality service. We will be prompt with updates about progress made through these alternative strategies.

Thank you for your kind ownership in this venture; rest assured that our team is steadfastly dedicated to ensuring an excellent Revival Day rally session.

Yours faithfully,

[Your name]

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Match the terms with the appropriate definition.

1. arbitration
desired outcome or achievement
2. bilingual
ability to use two languages fluently
3. compromise
the act of training an employee to also perform tasks performed by another employee
4. constructive criticism
activities outside the scope of your education or employment that enhance personal development and pleasure
5. cross-training
when a third party is consulted to make a final decision in resolving a conflict
6. extracurricular activities
explaining an error to another person in a positive way and offering ideas to avoid similar mistakes in the future
7. goal
to give up something to resolve a conflict

Answers

Answer:

1. goal

2.correct

3.cross training

4.extracurriculars

5.arbitration

6.constructive criticism

7.compromise

Which is true about viewing a credit score:
1 point
Credit score is private, individuals can see their own score but nobody else can see it.
Credit score is for lenders only, individuals do not ever know their own score.
Credit score is for agencies to monitor, they do not share it with banks or individuals.
Credit score is available for individuals, lenders, and reporting agencies to see.

Answers

Credit score is for lenders

You just acquired 1,000 from the lottery.
You decide to invest in stocks with it (like a smart person should). You figure on buying apple stock which costs $100 a share. How many shares would you own of apple if you bought $1,000 worth of apple stock at $100 a share.

Answers

If you bought $1,000 worth of Apple stock at $100 per share, you would own 10 shares of Apple stock.

To determine the number of shares you would own of Apple stock if you bought $1,000 worth of stock at $100 per share, you need to divide the total investment amount by the price per share.

Number of shares = Total investment amount / Price per share

In this case, the total investment amount is $1,000 and the price per share is $100.

Number of shares = $1,000 / $100

= 10 shares

Therefore, if you bought $1,000 worth of Apple stock at $100 per share, you would own 10 shares of Apple stock.

It's important to note that stock prices fluctuate, so the actual number of shares you would own may vary depending on the current market price at the time of purchase. Additionally, transaction fees and other costs associated with buying stocks should also be taken into consideration.

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Select the
correct answer.
What does a
production possibilities curve represent?
O A.
a combination of price and demand of goods
and services
B.
O c.
a combination of the goods produced before and after a change in a factor of production
a combination of two factors of production used to produce a single
good or service
D
a combination of two goods that can be produced using limited resources

Answers

Answer:

D

Explanation:

because to show the tradeoffs associated with allocating resources between the production of two goods

Production is an example of a marketing activity.

Question 1 options:

True


False

Answers

The answer is true, production is one of the most important marketing activities

Two factors that can cause a person to change their status from *employed" to "not economically active" ​

Answers

A person's economic status can move from "employed" to "non-economically active" due to two circumstances.

For men, being out of the labor force due to illness or disability has been the main cause. The main motivation for women has been to take care of a family member.

The population that is engaged in the economy includes both employed and unemployed people. The population that is "economically active" is referred to as the labor force or labor supply. Those who were working for pay, profit, or family gain at the time of the census are considered employed.

The labor force is a crucial element of economic expansion: Businesses are able to increase production and employment when more people join the workforce.

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Consumer Protection Acts on Marketing Functions​

Answers

Answer:

Marketing must not be misleading or deceptive, for example, suppliers must not: give untrue characteristics about themselves, or their goods or services; or. ... A supplier must advertise goods or services only if they are available and can be supplied.

Circle Square, incorporated had an ROI of 9%, turnover of 3.0, and sales of 4 million for the year. What is the margin for the year

Answers

The margin for the year is 30% for Circle Square, incorporated had an ROI of 9%, turnover of 3.0, and sales of 4 million for the year.

What is margin?

To calculate the margin, we can use the formula:

Margin = Net Income / Sales

First, we need to find the net income, which is calculated as:

Net Income = ROI x Total Assets

Total Assets = Sales / Turnover

Net Income = ROI x (Sales / Turnover)

Net Income = 0.09 x (4,000,000 / 3.0)

Net Income = $1,200,000

Now we can calculate the margin:

Margin = Net Income / Sales

Margin = $1,200,000 / $4,000,000

Margin = 0.30 or 30%

Therefore, the margin for the year is 30%.

What are the assets?

An asset is a resource that is owned or controlled by an individual, company, or organization that has economic value and is expected to generate future benefits. Assets can be both tangible and intangible. Tangible assets are physical objects that can be seen and touched, such as buildings, equipment, inventory, and cash. Intangible assets, on the other hand, are non-physical items that do not have a physical presence but still have value, such as intellectual property, brand names, patents, trademarks, and copyrights.

Assets are recorded on a company's balance sheet and are typically classified as current assets, such as cash or inventory that can be converted to cash within one year, or long-term assets, such as buildings or equipment that will provide future economic benefits over a period of several years.

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Using concepts and actions explained in this chapter (Chapter 5): Decide if Aldi is more likely to respond to any strategic actions Amazon might initiate through Whole Foods, or If Amazon through Whole Foods is more likely to respond to any strategic actions Aldi takes. Be prepared to justify your decision.

Answers

In Chapter 5, the concept of competitive rivalry was discussed, which is a crucial factor in determining how firms respond to strategic actions taken by their competitors. Based on this concept, Aldi and Amazon/Whole Foods operate in different competitive environments, which affects their likelihood of responding to each other's strategic actions.

Aldi operates in the discount grocery market, which is highly competitive, with other players like Walmart, Dollar General, and Kroger. In contrast, Amazon/Whole Foods operates in the premium grocery market, which is also competitive but with a different set of players such as Trader Joe's and Sprouts Farmers Market.

Given this competitive environment, it is more likely that Aldi will respond to strategic actions initiated by Amazon/Whole Foods. This is because Amazon/Whole Foods is operating in a different market segment than Aldi and thus poses a lesser direct threat to Aldi's market share. However, Aldi is still likely to respond to strategic actions initiated by Amazon/Whole Foods to maintain its competitive position in the discount grocery market.

On the other hand, it is less likely that Amazon/Whole Foods will respond to strategic actions taken by Aldi. This is because Aldi operates in a market segment that is not directly competing with Amazon/Whole Foods, and thus, Amazon/Whole Foods may not perceive Aldi's actions as a direct threat to its market share. However, Amazon/Whole Foods may still respond to Aldi's strategic actions if it perceives that Aldi's actions could have a ripple effect on the overall grocery market or if Aldi's actions could threaten Amazon/Whole Foods' long-term growth plans.

In summary, Aldi is more likely to respond to strategic actions initiated by Amazon/Whole Foods, while Amazon/Whole Foods is less likely to respond to strategic actions initiated by Aldi. The competitive environment in which each firm operates and the perceived level of threat posed by the other firm's ac

Requirements for legal capacity for an individual are that a person must be at least sixteen and intelligent. true false

Answers

Answer:

False

Explanation:

You have to be 18

Required informationSkip to questionIntroductionRead the overview below and complete the activities that follow.
Remedies for Breach of Contract
In the case below, a municipality backs out of a contract to have a bridge built. The contractor has already begun production and incurred costs.
CONCEPT REVIEW:
The overall goal of damages in breach of contract suits is to put the parties where they should have been if the contract had been performed. But the solution simply ordering the parties to perform is rarely enough. Damages vary greatly based on the nature of the contract itself, as well as the extent to which performance is underway.
Remedies
Read the short case below, and select the best answer to each question that follows.
The Randolph Bridge Company (RBC) agrees to build a suspension bridge in the city of Detroit. Detroit plans to pay RBC $50 million. RBC's anticipated costs, including labor, materials and so on, are $40 million. Construction is anticipated to take six months. One month into the project, RBC has put $10 million into the project. Detroit tells RBC at this point that it no longer wants the bridge, and plans to breach the contract.
How much will RBC's damages be?
a) $50 million
b) $0
c) $20 million
d) $10 million
e) $40 million

Answers

Answer:

Please given an Explanation:

The damages that will be faced by the Randolph Bridge Company if Detroit plans to breach the contract will be close to around $10 million at the point of one month.

What is breach of contract?

A breach of contract is a condition wherein a party to the contract violates the terms of agreement as per the documents signed during the contract. A breach of contract makes such person, who breaches, liable to be sued.

In the above case, it has been observed that the city of Detroit has made promises to pay for the project at the end of completion of the project of building the bridge; however, no payments have been made at the end of one month, where RBC Company has already deployed an amount of $10 million.

As the RBC Company has not received any of the payments and a breach of contract has been made by the Detroit city, the total damages for the company at such point will be $10 million, considering that no loans or advances were taken to repay the same.

Hence, option D; $10 million are the damages suffered and incurred upon by the RBC at the end of one month when Detroit has made a breach of contract agreements.

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You are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% for 48 months. If you take the $2500 rebate and finance your new car through your credit union your monthly payments will be closest to:

Answers

Answer:

there are no options listed, but the answer should be $592.91 or the closest option

Explanation:

this is an ordinary annuity and in order to calculate the monthly payment you can use the present value of an annuity formula:

present value = monthly payment x PV annuity factor

monthly payment = present value / PV annuity factor

present value = $27,500 - $2,500 (rebate) = $25,000PV annuity factor (0.541667%, 48 periods) = 42.16421

monthly payment = $25,000 / 42.16421 = $592.91

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