Question:
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?
A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.
B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.
C. The manufacturer has sacrificed quality by using a lower-cost input.
D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.
E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.
Answer:
A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.
Explanation:
Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.
It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.
An example of companies who have done this are:
1. Apple
2. Netflix
3. Comcast (Which acquired NBC)
Businesses can integrate by
- purchasing their suppliers to reduce the costs of manufacturing or
- controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.
Answer:
The cash flows from operating activities for 2018 is $99,000.
Explanation:
Westfall Industries
Statement of cash flows (extract)
Net income $81,000
Add Loss on the sale of land 4,000
Depreciation expense 8,000
Decrease in current asset 2,000
Increase in current liabilities 4,000
Cash flows from operating activities $99,000
- Decrease in current assets was arrived at by comparing the closing balance of $48,000 to the opening balance of $50,000.
- Increase in current liabilities was arrived at by comparing the closing balance of $40,000 to the opening balance of $36,000.
You have to do some adding and multiplying. first 99.55 times 4 tires
Answer:
There is no balanced budget provision in the U.S. Constitution, so the federal government is not required to have a balanced budget and Congress usually does not pass one. Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been enacted.
Another name for a negotiated labor-management agreement is a Collective bargaining agreement (CBA).
<h3>What is
Collective bargaining agreement ?</h3>
Collective bargaining agreement can be regarded as the contract which encompass results of the negotiations that exist between the employer and the union.
Therefore, Another name for a negotiated labor-management agreement is a Collective bargaining agreement (CBA).
Learn more about agreement at
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