Describe forward and backward integration
What will be an ideal response?
• Forward Integration — where an organization sets up or buys its own distribution functions (e.g. a university publisher setting up its own bookstore
• Backward integration — where the organization sets up or buys out a supplier (e.g. a nursing home setting up a wholesale operation)
• Efficiencies, improved service or additional revenue are deciding factors in determining strategies
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Exhibit 11-2 Browning purchased a business copier for $4,500 on August 3, 2016. It has an estimated residual value of $500 and an expected service life of five years. Browning uses double-declining-balance depreciation computed to the nearest whole month. Refer to Exhibit 11-2. Depreciation expense for 2016 was
A) $600 B) $667 C) $750 D) $1,500
Martin would like to insure valuable personal property limited in coverage by his homeowners policy. Martin has two options
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Coppersmith executed and delivered negotiable notes to the payee, Charlene. The payee indorsed the notes to Whitehurst but did not deliver them. Instead, she kept the notes in her possession because she wanted to collect the interest during her life and
wanted the indorsee to have the notes on her death. After Charlene's death, her executor, Cartwright, found the notes. Both Cartwright and Whitehurst sought to enforce the notes against Coppersmith. Who was entitled to do so?
Eric has just purchased a heating oil contract at $2.05 per gallon. The contract size is 21,000 gallons. Initial margin is $6,075; maintenance margin is $4,500. If the price of heating oil is $2.15 when the contract expires, Eric's profit or loss is
A) $(2,100) loss. B) $2,100 profit. C) $(3,975) loss. D) $(2,400) loss.