Sales of watches among teenagers and 20-somethings are declining rapidly as this age group uses cell-phones, iPods, and other devices to tell time. A company that specializes in selling inexpensive watches to this age group may wish to consider ____ in order to develop new products other than watches.a.unrelated diversification.
b.backward integration.
c.forward integration.
d.horizontal acquisitions.
Answers
Answer:
a. unrelated diversification.
Explanation:
Unrelated diversification -
According to this concept , any company or any business , which can have very high financial condition and high revenues , is favorable for diversification , is referred to as unrelated diversification .
From the scenario of the question,
As there is significant reduction in the demand of watches , and therefore , the company is thinking to develop some products other than watches , to maintain the profit and demand of the product .
Hence , the correct option is a. unrelated diversification .
Related Questions
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 86,000 units, 70% complete as to materials and 25% complete as to conversion. Units started and completed: 262,000. Units completed and transferred out: 348,000. Ending Inventory: 33,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of conversion.
Paradise, Inc., has identified an investment project with the following cash flows.Year Cash Flow1 = $5752= $ 8253= $1,1254 =$1,325(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?(b) What is the future value at a discount rate of 16 percent? (c) What is the future value at discount rate of 29 percent?
Williams Construction Inc. is building a new facility that will cost $45 million. Williams Construction will borrow $42 million from Wells Fargo bank and pay the remainder immediately as a down payment. Williams Construction will pay 8% interest but will make no payment for 4 years, at which time the entire amount will be due. How much will Williams Construction’s payment be?
Marcos receives an annuity payment of $2,500, payable every two years, for the next ten years. The next payment is due two years from today. What is the present value of this annuity at a discount rate of 5 percent?
Answers
Answer:
C. $400,000
Explanation:
The computation of the gross profit is shown below:
Gross profit = Net Sales - costs of goods sold
= $500,000 - $100,000
= $400,000
For determining the gross profit, we deduct the costs of goods sold from the net sales, so that the true value can come. It is shown in the income statement
All other information which is given is not relevant. Hence, ignored it
Answers
The numerator of the return on common stockholders' equity is net income minus preferred dividends.
Option d
Explanation:
Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.
Use of return on equity:
- Isolates common equity returns
- Can be used to evaluate dividends
- Evaluates the use of capital by the management
It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.
That is,
Hence, net income minus preferred dividends is the right answer.
Answers
Answer:
I have put the filing status in table. So please refer attachment 1 for the table.
Explanation:
Please refer to attachment 1 for explanation.
Celia was married 24 years ago, i.e. 1980 and in 2014 her husband died, now her filing status is Widower since she didn’t marry till 2016 but she has son so he would be dependent member because Celia pays more than 50% of his expenses. Hence, the filing status for Celia would remain same till she pays for her son.
Answers
Answer:
C. $77,000
Explanation:
Calculation for the amount of liabilities
Using this formula
Amount of liabilities=(Cash+Account receivable +Equipment) -Equity
Let plug in the formula
Amount of liabilities=($39,000+$45,000+$80,000)-$87,000
Amount of liabilities=$164,000-$87,000
Amount of liabilities=$77,000
Therefore the Amount of liabilities will be $77,000
Final answer:
To determine the company's liabilities, you apply the fundamental accounting equation (Assets = Liabilities + Equity). In this case, the total liabilities amount to $77,000.
Explanation:
The amount of liabilities a company has can be determined by a key equation in financial accounting: Assets = Liabilities + Equity. This company's total assets are calculated as follows: cash ($39,000) + accounts receivable ($45,000) + equipment ($80,000) = $164,000. Knowing this and considering that Equity is $87,000, we can rearrange the equation to solve for Liabilities: Liabilities = Assets - Equity, which results in: Liabilities = $164,000 - $87,000 = $77,000. So the answer is C. $77,000.
Learn more about Liabilities here:
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Answers
Answer:
Price Elastic
Explanation:
We know that
The formula to compute the price elasticity of demand is shown below:
= (Percentage change in quantity demanded) ÷ (percentage change in price)
The classification as follows
1. Perfectly inelastic = If zero
2. Inelastic = When elasticity is below than one
3. Unitary elastic = When elasticity is equal to one
4. Elastic = When elasticity is exceeded than one
5. Perfectly elastic = When elasticity is in infinity
Since the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good which reflects that the elasticity is more than one
Answer:
The demand is price elastic in nature because it is greater than 1.
Explanation:
Price Elasticity of demand refers to the response of quantity demanded of a good to the change in price. Of course, when the price decreases, quantity demanded of a good increases and vice-versa but to how much degree is determined by the Price Elasticity of demand.
Mathematically, Price Elasticity of Demand is the ratio of % change in quantity demanded of a good and % change in the price of a good i.e.
Price Elasticity of Demand = % change in quantity demanded of a good / % change in the price of a good
In the problem, since the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, the above ratio will be greater than 1. Hence, the demand of the good is price elastic.
(B) manages transportation and warehousing functions.
(C) consumes about one-half of every dollar spent on products in the United States.
(D) links producers to other marketing intermediaries.
(E) directs the flow of products from producers to customers.
Answers
Answer:
Option E
Explanation:
In simple words, A marketing channel refers to the individuals, organizations, and practices that are required to complete the sale of commodities from the point of manufacturing to the points of consumption.
It is the manner in which products reach the final-user, the consumer; and is also regarded as a method of delivery. A communication platform is a valuable management tool and is essential to the creation of an efficient and well-prepared marketing strategy.
Thus, from the above we can conclude that the correct option is E.