Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Which size of firm, large or small, is most prone to business failure?
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- To reduce the threat of entry in the manufacturing industry, should you invest in highly specialized production equipment with no resale value, or general purpose equipment that can be resold at cost? Assume production costs are equal once installed.arrow_forwardCompetitive advantage can be defined as: Group of answer choices A firm’s ability to establish market leadership. A firm’s ability to grow faster than its competitors. A firm’s potential to earn a rate of profit that is persistently higher than its rivals. A firm’s potential for launching innovative new products.arrow_forwardIt is said that competition is not valued for its own sake but because it produces efficient market outcomes. However, conduct is tested against its impact on competition rather than its impact on efficiency. Carefully explain this apparent inconsistency. Use examples to illustrate your response.arrow_forward
- If a firm sustains the same level of operations in terms of sales and administrative expenses, but reduces its materials cost by $65,000 through smarter purchases, what is the profit leverage effect on profits before taxes expressed as a dollar value?arrow_forwardLet's assume for the moment that you own an optometric shop in your home town that sells glasses and contacts to customers. Where would the threat of substitutes come from for your shop?arrow_forwardYou have a manufacturing plant in Mexico. The plant makes products that are brought back to the US for resale. The new President of the US has just imposed a 45% tariff on goods brought in from Mexico. You are effectively out of business. How would a scenario plan have prevented your business from failure? What would your plan be if the scenario happened?arrow_forward
- Discuss the ethical issues related to using public funds for an operation that could be seen as a for-profit venture that is in competition with private sector companies.arrow_forwardDiscuss How should small businesses prepare for future disruptions in supply chains created by natural disasters?arrow_forward
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