Answer:
To work on a specific issue that needs a resolution, your company could put together a problem-solving team
Explanation:
It is a known fact that when problem arises, what comes to everyone's mind is a solution to such problem. From the above analogy, it is expedient to note that working on issues that needs resolution a problem-solving team is required in order to have a round peg in a round hole, thus; solving the problem without escalating it whatsoever.
Ending assets for CompuHelp equals $650,000, and the beginning retained earnings was $325,000. If net income during the period was $225,000 and the cash dividends paid total $150,000, what is the ending liabilities (assume common stock is zero)?Ending liabilities will be $250,000
Answer:
It is $250,000
Explanation:
Ending retained earning = Retained earnings at the beginning+Income during the period-dividends paid
= $325,000+$225,000-$150,000
= $400,000
Ending liabilities = Total Assets- Ending retained earnings
= $650,000-$400,000
=$250,000
Using Accounting equation, All Assets= Total equity and liabilities
Economic models are:
A. simplified versions of reality designed to analyze "what is" to explain human decision making in any context.
B. simplified versions of reality designed to analyze "what ought to be" to help the government improve outcomes.
C. simplified versions of reality designed to analyze "what is" to explain human decision making in a business context.
D. complex mathematical formulas designed to forecast future economic events such as inflation.
E. complex mathematical formulas designed to identify optimal market outcomes and guide policymakers.
Final answer:
Economic models are simplified tools that economists use to analyze and explain human decision making, specifically focusing on 'what is' in various contexts, rather than 'what ought to be' or predicting future events.
Explanation:
Economic models are simplified representations of reality that economists use to explain human behavior and decision making in various contexts. They serve as tools for analyzing "what is" rather than "what ought to be". These models usually involve the use of theories which, unlike mathematical formulas predicting future events, are fundamental in understanding and predicting economic outcomes.
For instance, the model of supply and demand curves exemplifies the concept of market equilibrium, demonstrating how prices tend to stabilize in the market place. This shows how economic models are vital in explaining economic phenomena and assisting in economic decision making at both a microeconomic and macroeconomic level.
Economic models, therefore, are not merely complex mathematical formulas used for forecasting but are built on both simple and complex assumptions that help explain real world scenarios, helping everyone from policymakers to individuals make informed decisions.
If demand is inelastic, then: a. buyers do not alter their quantities demanded much in response to advertising, fads, or general changes in tastes. b. the demand curve is very flat. c. buyers respond substantially to a change in price, but the response is very slow. d. buyers do not respond much to a change in price.
Answer:
d. buyers do not respond much to a change in price.
Explanation:
Inelastic demand means a stable demand. The phrase elasticity of demand is used to describe how responsive the demand for a service or a product is to changes in prices. Elastic demand means that the demand has stretching attributes. Changes in price will lead to a decrease or an increase in the quantity demand.
Inelastic demand means that changes in price do not have a significant impact on the quantity demanded. Essential goods and services that are necessary for survival, such as food and water, will have inelastic demand. Other items considered crucial such as fuel, oil, and gas will also have inelastic demand. People will have to consume them. A small change in price will not have an impact on demand.
Assessing the __________ of a tax system means determining the amount of tax revenue needed to fund the government and ensuring that the funds are provided by the system.
Answer:
Sufficiency
Explanation:
Tax is a compulsory levy imposed by the government of a sovereign state on her citizens. Difference types of tax are used by the tax authority to generate sufficient revenue and also to implement economic policy, these are direct and indirect taxes.
The word tax sufficiency relates to the measurement of the divergence if any between the actual tax yield and the expected aggregate tax revenue. This assessment will enable the government of the day to take corrective actions to close any observed gap.
Assessing the adequacy of a tax system involves determining the amount of tax revenue required for government functions and ensuring the system can provide it, with a focus on efficiency, understandability, and equitability.
Assessing the adequacy of a tax system means determining the amount of tax revenue needed to fund the government and ensuring that the funds are provided by the system. A good tax system should have certain characteristics to ensure that it meets the needs of public finance.
A tax system should be efficient, meaning it should raise the necessary revenues without unduly burdening the taxpayer. It should also be understandable, allowing the average citizen to easily comprehend the taxes they pay. Equitability is also a core component, with the expectation that the wealthier pay a higher amount reflecting their ability to contribute more.
The benefit principle suggests that those who use public services should pay more in taxes, reflective of the benefits they receive from government services.The Internal Revenue Service (IRS) in the United States is the regulatory authority empowered by Congress to collect taxes, making it a central element in public finance and the financing of government expenditures.
Furthermore, the federal tax system operates on principles like benefits received and the ability to pay. Governments require tax revenues to perform essential functions and supply goods and services such as legal systems, defense, roads, and education. The challenge is finding a balance in tax policy that meets revenue needs without impeding economic growth or contravening other public policy goals.
The organization structure at Kinetic Machines is horizontally divided into Marketing, Finance, Production, and R&D departments. Identify the departmentalization mode being used here. a) product.
b) geographic.
c) functional.
d) customer.
e) matrix.
Answer:
e. Matrix mode of Departmentalization
Explanation:
The matrix mode of departmentalization seeks to bring a combination the best features of both the task force (product or project) as well as the functional departmentalization modes with the aim of improving the cooperation among several components that are required for a particular activity in the organisation.
The aim is to organize the departments in the organisation based on a particular project or product line as well as around functional lines. This ensures that the advantages of the two modes can be combined.
The matrix departmentalization mode puts each department on the same line as described in the question and since no department has an hierarchy over the other but are horizontally lined, it is expected that they can work better with one another. However, due to the lack of a clear hierarchical system of chain of order there could be uncertainty when defining the reporting chain.
The departmentalization mode being used at Kinetic Machines is functional, which groups employees based on their areas of expertise or job functions.
Explanation:The departmentalization mode being used at Kinetic Machines is functional. Functional departmentalization groups employees based on their areas of expertise or job functions. In this case, the departments at Kinetic Machines are divided based on the specific functions they perform: Marketing, Finance, Production, and R&D.
Large companies may manage a number of very different businesses called _____. a. strategic business alliances b. focus groups c. business clusters d. strategic business units
Answer: Strategic business units.
Explanation:
Large companies in most cases have a lot of sub-companies under them that run almost independently but report to the headquarters of the large companies about their activities, these sub-companies are known as strategic business units(SBU). The SBU helps the large company gain a large area of coverage.
Amy can study for an hour or spend that hour sleeping or going out for dinner. If she decides to study for the hour, the opportunity cost of the hour spent studying is:_______
a. sleeping or going out for dinner, whichever she would have preferred the most
b. definitely going to sleep.
c. sleeping and going out for dinner.
d. studying since this is the choice she opted for.
e. definitely going out to dinner because she must eat at some time
Answer:
a. sleeping or going out for dinner, whichever she would have preferred the most
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Studying is the real cost .
I hope my answer helps you
Your clients are interested in an investment that may appreciate in value and be a hedge against inflation. Their best alternative is in:_______.
Answer:
REAL ESTATE
Explanation:
When an asset is expected to be an hedge against inflation it implies that such an asset is expected to maintain or increase its value over time. Real Estate is considered a hedge against inflation, because land on the one-hand is an asset that does not depreciate but appreciate and forms part of the buildings in real estate, and secondly, home values and rents normally increases during times of inflation.
Consider the following bond quote: a municipal bond quoted at 101.25. If the municipal bond has a par value of $5,000, what is the price of the bond in dollars?
Answer:
= $5,062.5
Explanation:
A municipal bond represents a security usually of debt used primarily for capital expenditure financing by the government of a municipality, a state or a county. Such capital expenditure includes building infrastructures such as roads, schools, hospitals, bridges among several others.
Municipal bonds are usually exempted from taxes; federal taxes and even in quite a number of states both the state and the local taxes. This is done to motivate the people to purchase the bonds.
To calculate the price of the bond in dollars, the step is to
Multiply the Municipal bond quote (in percentage) by the Municipal bond par value
= Municipal bond quote = 101.25%
Municipal bond par value= $5,000
= 101.25% x $5000
= $5,062.5
Final answer:
The price of a municipal bond quoted at 101.25 with a par value of $5,000 is $5,062.50. If the bond's interest is less than the market interest rate, it would be priced less than its face value to remain competitive.
Explanation:
To calculate the price of a municipal bond quoted at 101.25 with a par value of $5,000, you would multiply the par value by the quoted percentage price. A quote of 101.25 means that the bond is selling for 101.25% of its par value. So the calculation is:
Price of bond = Par value × (Quoted price / 100)
Price of bond = $5,000 × (101.25 / 100)
Price of bond = $5,000 × 1.0125
Price of bond = $5,062.50
Therefore, the price of the municipal bond in dollars is $5,062.50.
When considering bond prices and interest rates, if the bond's interest rate is less than the market interest rate, you would generally expect to pay less than the par value for the bond. Using the provided example, if a bond's expected payments are $1,080 and the market interest rate is 12%, an alternative investment would need a present value of $964 to match that future value. This results in the bond being priced at or below $964 since it must be competitive with the market.
A young engineer borrowed P21,552 at 10% interest and paid P3,735 per annum for the last 3 years. What does he have to pay (in pesos) at the end of the following year in order to pay off his loan?
Answer:
Explanation:
PV=21552
3735*3=11205 paid off
n=4 years
if we find FV, it is equal to 31554.3 (amount to be paid)
Already paid 11205, so 31554-11205=$20349 needed to pay at the end of 4th year
AD corporation had sales of $750,000 and costs of goods sold of $350,000. Inventory at year end was $87,500. What is the inventory turnover?
Answer:
4 times
Explanation:
The inventory turnover ratio of the AD corporation can be calculated using the below mentioned formula:
Inventory turnover=Costs of goods sold/Average inventory
In given question
Costs of goods sold=$350,000
Assuming, inventory at year end= Average inventory=$87,500
Inventory turnover=$350,000/$87,500=4 times
A registered representative sends a prospecting letter to customers stating that significant profits can be achieved by purchasing call options in a rising market. This claim:
Answer:
B) must be balanced by a statement that trading options can also result in significant losses.
Explanation:
Representatives do not trade securities by themselves, they only enter orders on behalf of their clients and following their clients' orders. That means that the clients assume the risk of losing money due to a bad investment. The clients are also the ones that benefit the most since it is their money being invested. Any statement that states the possibility of significant earnings, must also include the possibility of significant losses.
In one hour, the United States can produce 25 tons of steel or 250 automobiles. In one hour,Japan can produce 30 tons of steel or 275 automobiles. This information implies that:
A.Japan has a comparative advantage in the production of automobiles.
B.the United States has an absolute advantage in the production of steel.
C.Japan has a comparative advantage in the production of both goods.
D.the United States has a comparative advantage in the production of automobiles.
Answer:
Option (D) is correct.
Explanation:
In United states:
Can produce 25 tons of steel or 250 automobiles,
Opportunity cost of producing a ton of steel = 250 ÷ 25
= 10 automobiles
Opportunity cost of producing 1 automobile = 25 ÷ 250
= 0.1 tons of steel
In Japan:
Can produce 30 tons of steel or 275 automobiles,
Opportunity cost of producing a ton of steel = 275 ÷ 30
= 9.17 automobiles
Opportunity cost of producing 1 automobile = 30 ÷ 275
= 0.11
Therefore,
United States has a comparative advantage in producing automobiles because the opportunity cost of producing automobiles is lower than the Japan.
Japan has a comparative advantage in producing steel because the opportunity cost of producing steel is lower than the United states.
Japan has a comparative advantage in the production of steel, while the United States has a comparative advantage in the production of automobiles, determined by their respective opportunity costs.
Explanation:The given information indicates that Japan can produce more steel and automobiles in one hour than the United States. However, to determine comparative advantage, we need to look at opportunity costs, or what each country gives up in order to produce one good over the other. We calculate this by dividing the maximum output of one good by the maximum output of the other.
For the United States, the opportunity cost of producing one ton of steel is 10 automobiles (250/25), and for Japan, it's approximately 9.17 automobiles (275/30). This means the United States has a higher cost of producing steel in terms of forgone automobile production, which indicates Japan has a comparative advantage in the production of steel.
Similarly, for the United States, the opportunity cost of producing one automobile is 0.1 tons of steel (25/250), while for Japan it's around 0.109 tons of steel (30/275). Hence, the United States has a comparative advantage in the production of automobiles, as it gives up less steel to produce each car.
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"Evaluations of financial information made through the study of plausible relationships among both financial and non-financial data are referred to as__________.
Answer: Analytical procedure
Explanation:
The analytical procedure is the process of the financial audit that basically helps in understanding the main objective of the client in the business.
It is one of the type of evidence gathering process for the auditors and helps in evaluating all the financial related data by analyzing both the non-financial or the financial information.
According to the given question, the analytical procedure is the evaluation of all the financial related data and also study of the plausible relationship in the system.
Therefore, Analytical procedure is the correct answer.
A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a:_____________
Answer:
The correct answer is a LOAN COMMITMENT
Explanation: A loan commitment is a commitment by a lender of an amount that he will loan to a qualified borrower on a specific piece of real estate for a specified period of time under certain conditions.
This commitment may be conditional, qualified or firm and contains details of the borrower.
Arlene makes earrings in the shape of the mascot of a local university. Last year Arlene made 250 pairs of earrings, which she sold to the university bookstore for $10 each. Arlene works out of her home, so her only cost is $3 per pair for materials and $85 for tax help. If Arlene didn't produce earrings, she would spend her time babysitting her nephews and make about $500 per year. a. Arlene's economic profit is $1,665. b. Arlene's accounting profit is $1,165 c. Arlene's total costs are $835. d. Arlene's total revenue is $2500.
Answer:
d. Arlene's total revenue is $2500.
Explanation:
Given that
Number of earrings pair = 250
Sale value each = $10
Material cost per pair = $3
For tax help =$85
Per year produce value = $500
By considering the above information
The total revenue would be
= Number of earrings pair × sale value each
= 250 pairs × $10
= $2,500
Hence the total revenue is $2,500
Only d option is a true statement rest options are wrong.
Lucia is a chief financial officer in a large corporation. Her responsibilities include the full financial authority to make appropriations and authorize expenditures. Lucia is likely to be a member of ________ management.
Lucia is likely to be a member of the top management.
What is top management?The organization's top management is in charge of setting policies, rules, and strategic goals as well as giving leadership and guidance for quality management.
Additionally, it ought to identify persons in charge and keep them answerable for a variety of management system procedures. They supervise and assess each employee's contribution, performance, and growth when managing one or more employees.
Top management is a group of managers who oversee marketing, finance, etc., at various operational levels. For instance, the chief financial officer (CFO) and vice president of marketing, whose main responsibilities are to coordinate many elements and manage the operations of several units.
Therefore, Lucia is likely a member of top management, seeing her responsibilities in the corporation.
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Gary works in a factory where the workers are known to leave oily rags all over the place. Which of the following best describes the oily rags?A. moral/morale hazardB. physical hazardC. societal hazardD. none of the above
Answer:
The term physical hazard best describes the oily rags.
Explanation:
The example narrated in the question statement is associated with hazardous environmental pollution due to a specific kind of waste that is in physical form that bears the potential of causing health issues. The scattering of oil rags left by the employees over the place of work would turn the place unhygienic and unfit for work. Hence, the term 'physical hazard' is used for oily rags.The component of communication that enables a sender of a message to know that the message was received is called _____.
Answer: Feedback
Explanation: Feedback could be termed as 'response'. It signals the receipt of information between communicating systems. Feedback is an important part of communication, it enables the sender to affirm receipt of information by the receiver. Feedbacks forms a loop between communicating systems where the systems adjusts on information or products in the medium. Feedbacks could be in form of body movement in terms of face-to-face communication, messages and other methods of acknowledging receipt of information.
Hot and Cold Corp. makes disposable coffee and soft drink cups for use in fast-food restaurants, hospitals, convenience stores, and the like. The company is working on a sturdy new product that will biodegrade within five years of being put in a landfill. According to the BCG matrix, this promising new product line would most likely be classified as a _____.
Answer:
Star in BCG matrix
Explanation:
BCG matrix is a system that helps the organization to decide on product sales, investment, etc. In BCG matrix, the product is divided into four types: dog, cash cows, stars and question marks.
stars - it is the type of product that makes high market share and growth. These produced large income but also require high investment
Hot and Cold Corp.'s new biodegradable cup line would likely be classified as a Question Mark in the BCG matrix, indicating a product with low market share in a high-growth market, requiring significant investment for growth.
According to the BCG (Boston Consulting Group) matrix, Hot and Cold Corp.'s new product line of disposable cups that biodegrade within five years of being placed in a landfill would most likely be classified as a Question Mark. The BCG matrix is a strategic tool used for portfolio analysis, categorizing business units or products into four quadrants based on their market growth rate and relative market share: Stars, Cash Cows, Question Marks, and Dogs.
A Question Mark represents a business or product with low market share but in a high-growth market. These products require significant investment to increase their market share but have potential for growth and possibly becoming Stars. Given the increasing pressure and demand for eco-friendly packaging solutions in the fast-food and beverage industry, this new line of biodegradable cups represents a high-growth opportunity but will initially have a small share in a competitive market as it seeks to establish itself.
A 76.00 pound flask of mercury costs $ 125.50 . The density of mercury is 13.534 g/cm 3 . Find the price of one cubic inch of mercury by calculating intermediate values. What is the price of one pound of mercury?
Answer:
1 cubic inch cost = $0.80
1 pound of cost = $1.65
Explanation:
given data
76.00 pound mercury costs = $125.50
density of mercury = 13.534 g/cm³
solution
we get here 1 pound of cost that is
1 pound of cost = [tex]\frac{125.50}{76}[/tex]
1 pound of cost = $1.65
or
453.5 gram cost = $1.65
now we get volume of flask
volume of flask = 76 × [tex]\frac{453.5}{13.534}[/tex]
volume of flask = 2546.62 cm³ = 155.40 cubic inch
so 155.40 cubic inch cost = $125.50
and 1 cubic inch cost = [tex]\frac{125.50}{155.40}[/tex]
1 cubic inch cost = $0.80
In Baer Food Co.'s 20x5 single-step Income Statement, the section titled "Revenues" consisted of the following: Net sales revenue $187,000 Results from discontinued operations: Loss from operations of the segment (net of $1,200 tax effect) $(2,400) Gain on the disposal of segment (net of $7,200 tax effect) 14,400 12,000 Interest revenue 10,200 Gain on the sale of equipment 4,700 Total revenues $213,900 In the revenues section of the 20x5 Income Statement, Baer Food should have reported total revenues of:_______________.
Answer:
Explanation:
In a single step income statement, revenues include sales and other gains
Sales revenue - 187000
Interest revenue - 10200
Gain on sale of equipment - 4700
In Total - 201900
Suppose Oliver's marginal utilities from an ice cream cone and a box of chocolate cookies are valued at $6 and $10, respectively. The marginal costs of an ice cream cone and a box of chocolate cookies are $5 and $10, respectively. According to marginal analysis, Oliver should:
Answer:
Purchase the Ice Cream Cone for a net addition to marginal utility of $1
Explanation:
Marginal Utility is explained as the level of satisfaction that is added when a consumer consumes an additional unit of a product or patronizes a service. It determines the number of items an individual is willing to purchase based on his additional satisfaction from every extra item.
If the additional item leads to an increase in total utility then it is called positive marginal utility and when it decreases total utility then it is called negative marginal utility.
Oliver based on marginal analysis should purchase the Ice Cream Cone for the difference in value of $5 to 6$, that is the net additional marginal utility of $1, but should not purchase the box of chocolate because the marginal utility does not change it remains $10
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6 million. The machinery can be sold to the Romulans today for $5.1 million. Klingon’s current balance sheet shows net fixed assets of $3.4 million, current liabilities of $895,000, and net working capital of $235,000. If the current assets and current liabilities were liquidated today, the company would receive a total of $1.15 million cash.
A. What is the book value of Klingon’s total assets today?
B. What is the sum of the market value of NWC and the market value of fixed assets?
Answer:
A. Book Value of Klingon’s Total Assets= Net Fixed Assets +Current assets = $3,400,000 + $1,130,000
=$4,530,000
B. What is the sum of the market value of NWC and the market value of fixed assets
i. Market Value of NWC = $5.1 million
ii. the market value of fixed assets =$5.1 million
Explanation:
Net working capital= Current assets minus current liabilities.
$235,000 =Current assets-$895,000
Current assets=$235,000 +$895,000= $1,130,000
Market value of new cloaking machinery(NWC) is equal to the market value of fixed assets. This is because the market values of other fixed assets is assume to be zero.
Book value of assets can be said as the value of the assets of the firm in the books of accounts. The total book value can be obtained by adding all the assets like fixed assets and current assets.
(a) The book value of Klingon Widgets Inc. can be calculated as follows:
Calculations[tex]\begin{aligned}\rm \: Total \:Assets&=\rm Net\: Fixed \: Assets+ Net\:Current\:Assets\\\rm Total \:Assets&= \$3,400,000+ \$1,130,000\\\rm \:Total \:Assets&= \$4,530,000 \end[/tex]
(b) Net Working Capital is the difference obtained by deducting current liabilities from current assets.
Net working capital is given as $235,000 in the question and fixed assets are assumed as zero. So the Sum of NWC and Fixed assets is also the same as NWC.
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The maximum amount of a product that sellers are willing and able to provide for sale over a relevant range of prices, holding all other factors constant, is called:_______.
Answer:
The maximum amount of a product that sellers are willing and able to provide for sale over a relevant range of prices, holding all other factors constant, is called law of supply
Explanation:
This simply explains that if all other factors are constant, as the prices increases, the supply offer increases as well which is termed the law of supply
The value of Maggie's car decreased by 15% since last year, when she bought it. If the car is now worth $21,000.00, how much was the car worth when she bought it?
Answer:
car worth when she bought it is $24705.88
Explanation:
given data
value of car decreased = 15%
car now worth = $21,000.00
solution
we consider here car worth when she bought it = x
value of car decreased 15 % it mean
(100 - 15% ) price 85% = $21,000.00 ........1
when car price 100% = x ...............2
so from equation 1 and 2 we get
x × 85 = 100 × $21,000.00
solve it we get
x = 24705.88
so car worth when she bought it is $24705.88
If a company that was started this month has net income of $30,000, dividends of $4,000, and liabilities of $20,000, how much is ending retained earnings for the month?
Answer: $26,000
Explanation: Retained earnings could be defined as that portion of a company's earnings that hasn't been distributed to shareholders as dividends. It is reserved as working capital, clear outstanding liabilities and general running of the business.
Retained Earning is calculated using the formula :
Retained Earning (RE) = beginning retained earning + Net income - dividend
Since the company just started (1st month), there was no previous retained earning.
Therefore,
RE = Net income - dividend
RE = $30,000 - $4,000 = $26,000
Americans spend the largest portion of their budget on
a. entertainment
b. housing
c. transportation
d. food
Please select the best answer from the choices provided
Oo oo
Mark this and return
Save and Exit
Next
Answer:
Americans spend the largest portion of their budget on Housing
Explanation:
Reason why housing has the highest budget allocation among the rest is as a result of its importance to life sustainability. Every Americans must reside in a place called house although the availability of some certain factors makes the price to vary but it does not negates the importance and why they spend more on housing rather than otherwise.
A 65-year old retired teacher living on a pension has $200,000 invested in 2 year certificates of deposit that are yielding 4%. $20,000 of the CDs are maturing and the customer wants to diversify into an investment that gives a higher return and a moderate level of risk. The BEST recommendation would be:
A. High yield corporate bonds
B. Treasury strips
C. Equity REITs
D. Income bonds
Answer:
The BEST recommendation would be:
C. Equity REITs
Explanation:
Equity REITs are Real Estate Investment Trusts that allow investors to purchase real estate without necessarily going out and buying the property themselves. They act as middlemen between the investors and the property sellers. The equity REITs invest and own property. The REITs in this way act as a type of security where the property can be traded in the market exchange like stocks and bonds. In this way, investments from large and small investors can purchase a piece of the real estate depending on the amount invested. The investors then own what is called, a share of the real estate.
To be a REIT, one needs to meet certain standards and regulations, for example; the REIT has to have more than 100 shareholders, the REIT has to be managed by a board of directors and the dividend payments have to be at least 90 percent of the REIT's taxable income per year. Equity REIT typically invest in the real estate sector like; industrial estates, residential estates and resorts. The y gain revenue from the rental income from the real estate holdings. This option would be best for the retired teacher since Equity REITs pay high dividends and the risk level is moderate since the real estate investments is diverse.
High yield corporate bonds have a higher return but the risk level is also considerable high. Treasury strips have low returns even though the risk is also very low. Income bonds have a high return only if the investor also has a high net income.
Which wholesaler's channel function is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than producers?
A. financing
B. buying and assortment building
C. risk bearing
D. warehousing
E. transportation
Answer:
E. transportation
Explanation:
The wholesaler is one of the middle-men in the channel of distribution that stands between the producer and the retailer in bulk breaking, he buys in bulk from the producers and sell to the retailer.
One of the functions of the wholesaler in the distribution value chain is the transportation of goods from manufacturer's warehouse to his warehouse at his own cost, thereby bringing the products closer to the consumers.