Answer: <u>The correct answer is D).</u>
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Explanation: A blue ocean strategy is used to gain a broad and durable competitive advantage by abandoning existing markets and inventing a new market segment in which competitors are minimal and allow the company to meet a new demand.
Answer: Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration is an example of a(n) JOINT VENTURE, which is effective at transferring KEY KNOWLEDGE.
Explanation: A joint venture is a kind of business formation which involves the coming together of two or more independent companies retaining their individual identities but functioning in some areas as one.
The companies involved in a joint venture come together to share key ideas used to improve each other and also funding.
Answer: the correct answer is B. (i) and (iii) only
Explanation:
A natural monopoly is a monopoly in an industry in which huge infrastructural costs and other fences to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors.
(i) multiple firms would likely each have to pay large fixed costs to develop their own network of pipes. This is true but often times it is just one big company the one that serves the whole market or a partnership of two or (rarely) three companies that works as a big company.
(iii) a single firm can serve the market at the lowest possible average total cost. This is true because a natural monopoly has scale economies that's why it can offer the lowest possible average total costs.
Answer:
The following entries would be made.
Stefan Ceramics
Sr. No Particulars Debit credit
1 Merchandise Inventory 291600
Accounts Payable/ Cash 291600
For purchase of 720 kgs of tungsten carbide at $280 per kg (720*280=291600)
Accounts Payable or cash depending on whether material was purchased for cash or through accounts payable( creditors).
2 Work In Process 291600 Dr
Merchandise Inventory 291600 Cr
For use of 720 kgs of tungsten carbide . As there is no ending inventory the whole of the material is charged to production.
