The correct answer is royalty. Royalty is considered to be a
payment by which is made by one by which the franchisee or the licensee owns
the asset in particular and that it is for the right of having to do an
outgoing use of the asset.
Answer:
$36
Explanation:
Computation for comparable firm 1
Price earning = Share price / Earning per share
= $50 / 5 = $10
Computation for comparable firm 2
Price earning = Share price / Earning per share
= $28 / 2 = $14
Average price earning = (Price earning of firm 1 + Price earning of firm 2) / 2
= ($10 + $14) / 2
= $12
Computation of stock price For STU
Stock price = Average price earning × Earning per share of STU
STU = 12 × ($3 million / $1 million) = $36
Answer:
$112,500
Explanation:
The good will to be reported in the balance sheet of the Pacific Corporation as at December 31 shall be determined using the following mentioned method:
Cost to acquire share of the Pacific Corporation $2,850,000
Less:Net Assets Acquired of Sand Corporation
Sand Net Assets $3,000,000
Excess value of land $200,000
Excess value of equipment $150,000
Fair value of non-compete $300,000
$3,650,000 ($3,650,000)
Add:Net Assets portion of the Non controlling interest $912,500
($3,650,000*25%)
Good will $112,500
Answer:
As this example illustrates, companies like Netflix must engage in <u>ONGOING STRATEGIC PLANNING</u> to remain relevant and competitive in the ever-changing environment of technology advancements, social trends, and legal regulations.
Explanation:
When a company develops a strategic plan, management is setting the business direction of the company. This means setting up a long term plan for the company to follow, but strategic plans cannot be fixed.
Strategic planning must always be an ongoing and fluid process, since markets are not static, nor your competitors will just sit around waiting for you to decide what to do. Your competition will constantly try to find ways to increase their market and lower yours, so you must respond accordingly.
In this case, Disney last year launched their own online service and that is going to be tough for Netflix, but if it isn't Disney, ti would be some other company.
