When are fixed costs relevant in a make or buy decision?
A) Fixed costs are never relevant to the decision.
B) Fixed costs are relevant when they differ among alternatives.
C) Fixed costs are always relevant to the decision.
D) Fixed costs are relevant when they exceed variable costs.
B
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Jay’s Catering Company holds tasting events that work as a small business strategic alliance by promoting
A. its combined technological expertise. B. the various cultures in the community. C. other complementary service providers. D. the flexibility of this small company.
Consider the bond market to be in equilibrium according to our complete theory of the term structure of interest rates. You observe the following interest rates available today on bonds with differing times to maturity. (You may ignore transactions costs.)
Time to maturity Yield to maturity 1 year 5.0% 2 years 7.0% 3 years 7.5% The term premium for the two-year bond is the extra yield to maturity paid on a two-year bond compared with buying two separate one-year bonds (one today and another after one year). You believe that the term premium on the two-year bond is 0.5 percent.The term premium for the three-year bond is the extra yield to maturity paid on a three-year bond compared with buying three separate one-year bonds (one today, another after one year, and another after two years). You believe that the term premium on the three-year bond is 1.0 percent.Given your beliefs about the term premiums on two-year and three-year bonds, calculate the interest rates on one-year bonds that you expect to prevail one year from now and two years from now. In other words, what do you expect to be the yield to maturity on a one-year bond one year from now and what do you expect to be the yield to maturity on a one-year bond two years from now? Explain and show all your work. What will be an ideal response?
A good example of a profit center would be
a. a car manufacturer's assembly line. b. a local Home Depot store. c. Avis Car Rental's national reservation center. d. a manufacturer's human resources department.
Crutchfield and Grant write that high-performing organizations ______.
A. do not share leadership B. master the art of adaptation C. create new markets D. discourage nonprofit networks