The five-forces model suggests that with intense competition an overall low-cost position will not enable a firm to achieve above-average returns.
Answer the following statement true (T) or false (F)
False
An overall low-cost position enables a firm to achieve above-average returns despite intense competition. It protects a firm against rivalry from competitors, because lower costs allow a firm to earn returns even if its competitors eroded their profits through intense rivalry.
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Xavier and Yolanda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss of $6,000 is allocated to Yolanda?
a. $1,000 b. $3,000 c. $5,000 d. $0
When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant, a fast-food restaurant, or a vending machine, then this form of price discrimination is known as ________
A) product-form pricing B) loss-leader pricing C) special event pricing D) channel pricing E) location pricing
Marley Investments, Inc. purchased 45% of the common stock of Beige Corporation on January 1, 2019. Beige Corporation reports a net income of $720,000 for the 2019 year. Which of the following is the correct journal entry?
Larry, a merchant seller, contracted with Simon to buy welding equipment. The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14th day from the date of the contract
But Larry could not make the pick up on that date and before he could do so on the 15th day, the warehouse was burned down by miscreants. In this situation, who bears the risk of loss of the goods that were to be received by Larry? A) The risk of loss lies with Larry for delaying the pick up. B) The risk of loss lies with Simon for not protecting the goods. C) The risk of loss is equally shared by Larry and Simon. D) The risk of loss is shifted to the persons responsible for the fire.