OPTIONS:
A. mutual-benefit organization
B. co-op
C. union
D. for-profit organization
E. nonprofit organization
Answer:
E. nonprofit organization
Explanation:
Nonprofit organization is a non-business entity that is founded for the main purpose of offering free services and pursuing charitable causes in areas such as research, health, educational settings, etc. Their sole aim is not to make profit, thus, they are charitable.It is set out as a way of giving back to the community, especially those in need.
Dr. Potter’s cause which he seeks to pursue is a charitable one, hence, what he intends starting is a nonprofit organization.
Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
Solution:
Manufacturing overhead expense volatility will be determined by subtracting the overhead cost of output from the total overhead cost of production according to the adjustable budget.
(Manufacturing overhead cost as per flexible budget) =
(Actual units x Variable manufacturing overhead per unit +Fixed manufacturing overhead )
= (5,050 x $1.30)+ $41,500 = $48,065
Actual manufacturing overhead cost = $47,905
Therefore, Manufacturing overhead spending variance
= $48,065 - $47,905 = $160
The deviation is positive as the real expense is smaller than the adjustable cost of the program.
These changes in strategy are indicative of internal forces of change. Internal forces of change in business refer to events, people and systems inside a company that aid or prevent it from fulfilling short term as well as long term goals.
Answer: Price differentiation
Explanation:
The startegy used by the theater company to shift demand for theater tickets is differentiating on the price. Price differentiation is a pricing strategy whereby difeent sets of customers are charged different prices for the same good or services.
The theater company gives 30% discount for people who buy the tickets early compared to people who buy the ticket on the day of the performance. This so differentiation on price.
