Explain the value chain perspective of a firm's competitive advantage.
What will be an ideal response?
The value chain perspective enables managers to see how competitive advantage flows from the firm's distinct set of activities. This is because a firm's core competency is generally found in a network linking different but distinct activities, each contributing to the firm's strategic position as either low-cost leader or differentiator.
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The shipping notice
a. is mailed to the customer b. is a formal contract between the seller and the shipping company c. is always prepared by the shipping clerk d. informs the billing department of the quantities shipped
A company has $1,606,000 in bonds payable with an unamortized premium of $40,000. If one-fourth of the bonds are converted to common stock, the carrying value of the bonds will decrease by
A) $401,500. B) $441,500. C) $391,500. D) $411,500.
Five years ago Rogue Construction Inc. issued 20-year maturity fixed-rate bonds at par with a 10% coupon rate. Today those same bonds carry a 14% yield to maturity. Which of the following statements about this bond issue could be TRUE?
A) Since issue, the economy-wide rate of inflation has increased. B) The market believes there is greater risk associated with this bond than at the issue date. C) Both A and B may be true. D) Neither A nor B could be true.
Stegemann Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for MayRevenue $5,300$156,400Employee salaries and wages$42,900 $1,300$82,300Refurbishing materials $500$15,100Other expenses$42,900 $41,900?When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.?The amount shown for "Other expenses" in the planning budget for May would have
been closest to: A. $42,400 B. $42,900 C. $41,900 D. $39,010