BUSINESS COLLEGE

To judge whether a particular diversification move has good potential for building added shareholder value, the move should pass the following tests:___________. A) the attractiveness test, the barrier-to-entry test, and the growth test.
B) the strategic fit test, the resource fit test, and the profitability test.
C) the barrier-to-entry test, the growth test, and the shareholder value test.
D) the attractiveness test, the cost-of-entry test, and the better-off test.
E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.

Answers

Answer 1
Answer:

Answer:

D) the attractiveness test, the cost-of-entry test, and the better-off test.

Explanation:

To judge a diversification change, an organization needs to pass the attractiveness tests, the entry cost test and the best situation test.

These tests will be decisive to analyze the potential that diversification will have to create added value for the shareholder.

The attractiveness test will list the ability that the market has to ensure that there is a safe return on investments.

The cost-of-entry will aim to ensure that when entering a new sector, the organization does not have higher costs that can influence the generation of profitability.

Finally, the better-off test will analyze whether the planned diversification will be so profitable that it will help to improve the performance of the integration of organizational businesses.
Answer 2
Answer:

Answer:

OPTION d

Explanation:

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Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 65,000 and buying 65,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

A bank system contains data on customers (identified by name and address) and their accounts. Each account has a balance and there are 2 type of accounts: one for savings which offers an interest rate, the other for investments, used to buy stocks.a. True
b. False

Answers

Answer:

a. True

Explanation:

The system of the bank contains the customers data i.e. name and the address by which they could be identified also their accounts are identified. Each and every account has the balance option also it involved two types of accounts i.e. saving that provides the rate of interest and the other one is for investment that used to purchase the stocks

Hence, the given statement is true

Trade-offs must be made among space, labor, and ____ with respect to warehousing design. Group of answer choices Construction materials Speed Mechanization Cost

Answers

Answer:

Mechanization

Explanation:

When a ware house is being setup, the aim is to get an efficient one that can service demand in a timely manner.

In order to minimise cost and maximise efficiency there is need to space, labour, and mechanisation that will be used on the production process.

Various analysis like capacity analysis and equipment analysis are carried out to ensure fast and cheap operation of the warehouse.

Inefficient warehouse designs leads to delay in service delivery and extra cost to the business.

The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.

Answers

Answer:

                                            Warbocks Corporation

Statement of retained earnings for the year ended December 31, 2017

                                                                                      Amount in $

Opening retained earnings                                           12,600

Net income for the year                                                  7,000

Dividend                                                                         (5,000)

Closing retained earnings                                             14,600

Explanation:

The retained earnings statement shows the movement in the retained earnings balance between the start and end of the year.

This includes the net earnings and dividend paid during the year.

Net income =  $30,000 - $15,000 - $2,000 - $4,500 - $500 - $1,000

= $7,000

A company marketing team identifies a small group of consumers who fit the profile of the typical customer. The team observes, gathers survey information from, or hangs out with these typical customers to gain insight into how the customers make product choices in order to design a future more rigorous study. The data collection method used in this example is ________.

Answers

The data collection method in that example is a focus group.

Suppose your boss has asked you to analyze two mutually exclusive projects - Project A and Project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of Project B. A coworker told you that you do not need to do an NPV analysis of the projects because you already know that Project A will have a larger NPV than Project B. Do you agree with your coworker's statement?a. Yes, Project A will always have the largest NPV, because its cash inflows are greater than Project B's cash inflows.


b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.


c. No, the NPV calculation is based on percentage returns. So, the size of the project's cash flows does not affect a project's NPV.

Answers

Answer:

b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

An example:

Suppose there are two projects with a cash outlay of $500.

The cash flow for project A :

Cash flow from year 1 to 3 =$0

Cash flow from year 4 to 7 =$ 500

WACC = 10%

Using a financial calculator, the NPV =$690.78

The cash flow for project B

Cash flow for year one and two =$300

Cash flow for year three = $100

Cash flow for year four and five =$500

WACC = 10%

using a financial calculator, the NPV = $747.76

From this example, even though the cash flow from project A is higher than the cash flow from project B, project B's NPV is higher.

I hope my answer helps you.

"The financial leverage multiplier is the ratio of​" ________. A. current assets to current liabilities B. total assets to total debt C. current assets to common​ stockholders' equity D. total assets to common​ stockholders' equity

Answers

Answer:

D. total assets to common​ stockholders' equity

Explanation:

The financial leverage multiplier (FLM) is defined as the ratio of the firm’s total assets to the shareholders’ equity.

Analyzing the answer choices provided, the one that better fits the description above is alternative D. total assets to common​ stockholders' equity
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