Suppose a drought in columbia destroys a significant portion of the nation’s coffee crop. How would this change the equilibrium price and quantity of coffee within the supply and demand framework?
Answers
Answer:
The equilibrium price increases and equilibrium quantity decreases.
Explanation:
A drought in the country of Columbia has destroyed a major portion of their coffee crop. This will cause the supply of coffee to decrease. This decrease in the supply of coffee will cause the supply curve to move to the left.
This leftward shift in the supply curve will cause the equilibrium price to increase and equilibrium quantity to decrease.
This is also shown in the attached figure.
Related Questions
Suppose you deposit $125 into an account at the end of every month. If the account earns 6% interest, compounded monthly, how long (in years) will it take for the value of the account to reach $8000? Round your answer to two decimal places.
Answers
Answer:
t = 69.4879 years ≈ 69 years 5 months and 27 days
Explanation:
A = P × [tex](1+\frac{r}{n})^{nt}[/tex]
Here,
A = total amount = $8,000
P = principal or amount of money deposited = $125
r = annual interest rate = 6%
n = number of times compounded per year = monthly i.e 12
t = time in years
thus,
$8,000 = $125 × [tex](1.005)^{12t}[/tex]
or
[tex](1.005)^{12t}[/tex] = 64
taking natural log both the sides, we get
[tex]\ln((1.005)^{12t})[/tex] = ln(64)
or
12t × ln(1.005) = ln(64)
or
12t = [tex]\frac{\ln(64)}{\ln(1.005)}[/tex]
or
12t = 833.85433
or
t = 69.4879 years ≈ 69 years 5 months and 27 days
Major activities of the Planning Section include:
A. Compensating for injury or damage to property.
B. Providing technology to ensure efficient incident communications.
C. Setting up and maintaining incident facilities.
D. Preparing and documenting Incident Action Plans.
Answers
Answer:
Major activities of the Planning Section include: D) Preparing and documenting Incident Action Plans.
Explanation:
The Planning section is responsible for various activities carried out in Incident Command System or ICS. ICS is used to respond to emergencies in the United States. The activities that befall under this section are mostly related to plannings.
These activities are: collecting and evaluating information, preparing and maintaining documents of incidents, etc. Preparing and maintaining the incident documents is an essential task and requires accuracy in representing the facts and figures. Hence, we can say that D is the only activity in the planning section of the ICS.
The major activities of the Planning Section in incident management include setting up and maintaining incident facilities, preparing and documenting Incident Action Plans, and providing technology for efficient incident communications.
Explanation:The major activities of the Planning Section in incident management include:
Setting up and maintaining incident facilities: This involves establishing the necessary infrastructure and resources to support the incident response and ensure smooth operations.Preparing and documenting Incident Action Plans: This includes developing a comprehensive plan that outlines the objectives, strategies, and tactics to be employed during the incident response.Providing technology to ensure efficient incident communications: This involves utilizing communication tools and systems to facilitate effective coordination and information sharing among incident responders.Learn more about activities of the Planning Section in incident management here:https://brainly.com/question/32134843
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George, a manager at Chromium Inc., never approves his subordinates' leaves. He also forces them to maintain a very high standard of productivity. The employees are unable to express their difficulties to George because he is more concerned about production and less concerned about them. In the context of the Blake-Mouton leadership grid, which of the following leadership styles is George using in this scenario?
a. The middle-of-the-road style
b. The country club style
c. The authority-compliance style
d. The impoverished style
Answers
Answer:
c. The authority-compliance style
Explanation:
The authority-compliance style is a style in which managers have a low concern for people and a high concern for results. So, managers that use this style think that their employees are a mean to get the results they need and have strict norms. This can lead to employees with low motivation. According to this, the styles that George is using in this scenario is the authority-compliance style because he doesn't show concern for its employees an he is focused on having a high productivity.
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.
1. What is the absolute size of its public debt in year 5? $Billion?2. If its real GDP in year 5 is $104 billion, what is this country
Answers
Answer:
1) this country's public debt = $42 billion
2) incomplete question
Explanation:
A budget deficit is the difference between a country's income and its expenditures, a deficit occurs when expenditures are larger than revenues. The public debt would be the accumulation of all the country's budget deficits or surpluses.
public debt = -$20 - $30 + $10 - $2 = -$42 billion
A college professor wants to know if the university students in the Unites States will find the new textbook that he has authored to be interesting and useful. He chooses all marketing majors at the school he teaches as his sample. He believes that this group of students will be representative of the university student population in the United States. In this scenario, the professor is most likely using:
area sampling.census sampling.judgment sampling.cluster sampling.quota sampling.
Answers
Answer:
Judgment sampling
Explanation:
Is a non-probability sampling techinque where the researcher selects units to be sampled based on his own existing knowledge, or his profesional judgment.
Answer:
Judgment sampling
When Coca-Cola saw the growth of the bottled water category, they launched DASANI, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
a. New brand
b. Multibranding
c. Line extension
d. Licensing
e. Brand extension
Answers
Answer: (A) New brand
Explanation:
The new brand development strategy is the process of strengthening the new brand services and also creating the new brand profession.
The first step of developing the the strategy is that the business objective should be clear and the plans of the business should be according to the potential of the customers.
Hence, the cocoa-cola company launching DASANI by using the new brand development strategy as it is one of the successful brand strategy executed in an organization.
Therefore, Option (A) is correct.
Municipal bonds are essentially the same as corporate bonds. Thus, the coupon (interest) rate set on a not-for-profit hospital bond will be the same (for all practical purposes) as the rate set on a similar for-profit hospital bond.a. Trueb. False
Answers
Answer:
False
Explanation:
Since interest income from municipal bonds is exempt from federal taxes, and usually it is also exempt from state and local taxes, the coupon rate that they pay is generally lower than private or federal bonds.
If the coupon rate is the same for a municipal hospital than that of a private hospital, the real interest rate paid by the municipal bond is higher. For example, both pay a 10% coupon: if you own a municipal bond you will earn 10%, but if you own a private bond your net earning will be = 10% - federal income taxes (and state/local income taxes)
According to the crowding-out effect, if the federal government increases spending, the demand for money and the equilibrium interest rate will ___________, which will cause consumption, investment, and net exports to ___________.
a. increase; decrease
b. decrease; increase
c. decrease; decrease
d. increase; increase
Answers
Answer:
a. increase; decrease
Explanation:
The crowding-out effect is one where public spending intended to increase spending in the economy (ie. aggregate demand, and thus stimulate the economy) results in less private spending, causing aggregate demand to increase less than the increase in public spending.
The reason is because as government spend they have to use money. That will raise demand for money, causing the its price (interest rate) to increase. Because money becomes more valuable (people have to forgo higher interest rate to spend their money or pay higher rate to borrow) there will be less spending on consumption and investment. Higher interest rate also causes net exports to decrease (more imports less exports).
Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will a. decrease, and producer surplus in the industry will decrease. b. increase, and producer surplus in the industry will increase. c. decrease, and producer surplus in the industry will increase. d. increase, and producer surplus in the industry will decrease.
Answers
Answer:
b. increase, and producer surplus in the industry will increase
Explanation:
A normal good is a good whose demand increases as income increases.
If grass seed is a normal good, when income rises, demand increases and the demand curve shifts to the right. This would lead to an increase of demand over supply which would lead to a rise in price.
The rise in price increases producers surplus.
Producers surplus is the least price a producer is willing to sell a product and the actual price the product is sold. If price rises, producer surplus increases.
Final answer:
When consumer income increases, the demand for normal goods also increases. In the case of grass seed, this results in an increase in the equilibrium price and producer surplus in the industry.
Explanation:
When consumer income increases, the demand for normal goods also increases. Grass seed is a normal good, so an increase in consumer income will cause an increase in the demand for grass seed. As a result, the equilibrium price of grass seed will increase, and producer surplus in the industry will increase as well. This is because higher demand will lead to higher prices and more sales, allowing producers to earn greater profits.
In order to hire graduates and postgraduates of microbiology, Arthur, the human resource (HR) manager at Kartholfen, a pharmaceutical company, decided to arrange a career fair at Plausom University. In the context of HR planning, this scenario best illustrates _____.
Answers
Answer:
External recruitment.
Explanation:
External recruitment is a strategic process that the corporate human resources sector uses to select out-of-company candidates with qualified profiles to fill available jobs within the organization.
Companies often use varied sources to select candidates, the most common being talent banks, job fairs, recruitment sites, newspapers and more.
The biggest benefits an organization can derive from performing an external recruitment process are greater choice among candidates, talent renewal, increased competitiveness by hiring a top talent and increasing diversity among professionals.
What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold?
Answers
Answer:
The equilibrium may increase, decrease or remain the same.
Explanation:
If more students attend college they will need textbooks, so the demand for textbooks will increase. This will cause the demand curve to shift to the right.
At the same time, as paper becomes cheaper, the cost of producing textbooks will get reduced. This will increase the supply of new textbooks. This increase in supply will cause the supply curve to shift to the right.
If textbook authors accept lower royalties the cost of production for textbooks will decrease, so the supply will increase.
If fewer old textbooks are sold, the demand for new textbooks will increase.
This increase in both demand and supply of textbooks will increase the equilibrium quantity of textbooks. But the change in equilibrium price depends on the proportionate change in demand and supply.
If both demand and supply increase by the same proportion, the equilibrium price will remain the same.
If demand increases more than the supply, the equilibrium price will increase.
If supply increases more than demand, the equilibrium price will fall.
If more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold. The equilibrium price of new textbooks is likely to decrease.
If more students attend college, the demand for new textbooks would initially increase, which could push the equilibrium price up. However, this demand increase is countered by several factors: the cost of paper becoming cheaper reduces the production costs of textbooks, potentially lowering the price.
Textbook authors accepting lower royalties further decreases production costs, which can also contribute to lower prices. Additionally, fewer used textbooks being sold means that students might need to purchase new ones, potentially increasing demand.
However, the overall effect of lower production costs (from cheaper paper and reduced royalties) is likely to outweigh the increased demand from more students needing new textbooks. Consequently, the equilibrium price of new textbooks is expected to decrease, as the supply side improvements help offset the demand increase.
You are planting seeds in a vegetable garden. According to the instructions on the seed packet, the seeds should be placed 12" apart. However, you would be content if the seeds were within an inch of that measurement on either end (i.e., between 11" and 13" apart). This is an example of ________.
a. the range of variationb. basic corrective actionc. benchmarkingd. deviation disparitye. a feedforward control
Answers
Answer:
A) the range of variation
Explanation:
In statistics, the range is a measure of variation which includes the highest value and the lowest value, in other words, the extreme points.
In this case, the range of variation represents the extreme points at which it is OK to plant our seeds. If we plant seeds more than 13" apart then we aren't doing it correctly, the same if we pant them less than 11" apart.
A producer of medical devices makes a single model that can be customized to talk in and display any of 47 different languages. This customization is performed in one of their five regional distribution centers as firm orders are received, providing an elegant example of:A) backward integrationB) forward integrationC) channel assembly.D) offshoring
Answers
Answer:
channel assembly
Explanation:
In the context of supply chain management, it seems that the information provided is describing channel assembly. This refers to the process in which products are assembled as they move through the distribution channels. This allows the manufacturers to customize the product on the specifications needed by the buyer. Such as is the case in this scenario, since the producer of the medical devices is able to customize the language of their device on buyer request.
Command and Control Regulation is when____.
a. government tells a firm how much they can produce.
b. Firms collude to produce a certain amount of a good.
c. Firms are required to install anti pollution equipment thereby increasing their costs and reducing their output.
d. The government taxes the amount of goods produced by a firm.
Answers
Answer:
The correct answer is C
Explanation:
CAC which stands for Command and Control Regulation, it is defined as the direct regulation which the industry or an activity through legislation states that what is permitted and what is illegal.
It requires the firms to install the anti pollution equipment and then increase the costs by reducing the output. It is successful in cleaning and protecting the US environment.
Katsiaryna is a middle manager in a large company. She was just passed over for promotion and could not understand why. On a scale from 0 to 100, her overall performance score over the last three years has been 89. In her company, the performance appraisal system defines outstanding performance at 90 or above, very good at 80 or above, good at 70 or above, average at 60 or above, and unacceptable as anything below 60. Katsiaryna found out that the average score for middle managers in her company is 91. What is the major appraisal problem in this case?
a) Inappropriate substitutes for performanceb) Inflationary pressuresc) Central tendency errord) Halo errore) Similarity error
Answers
Answer:
B) Inflationary pressures
Explanation:
When HR evaluate the employees' performance they might have a tendency to be "nice" with the employees and be less rigorous with the evaluations. Many times the negative factors will be downweighted and the evaluations will be upgraded. The problem with this nice person approach is that a lot of people will get very high evaluations and comparing them may lead to problems. For example, if everyone is considered a good or excellent employee, how do you know who will be promoted or who can be fired.
Cindy decides to gift her brother, Bob, with a small cottage that she owns on a piece of property adjacent to her main summer home. To transfer her interest in the house to Bob, Cindy signs a ________.
Answers
Answer:
Quitclaim deed
Explanation:
A quitclaim deed is a legitimate apparatus that is utilised to transfer interest for genuine property. The element moving its advantage is known as the grantor, and when the quitclaim deed is appropriately finished and executed, it moves any concern the grantor has in the property to a beneficiary, called the grantee. There are three sorts of land deeds: (1) the general guarantee deed, (2) the unique guarantee deed, and (3) the quitclaim deed
Alma is interested in receiving income to help save money for her grandson’s college education. She is considering investing in the stock of a fast-growing technology company that is promising a rather high dividend rate to shareholders. One thing it will be helpful for Alma to remember is_______.
A. that dividends are always based on the prevailing market price of the stock.
B. the dividend rate of a company cannot be changed once it is set.
C. fast-growing companies are rather secure investments to purchase.
D. the company does not have a legal obligation to pay dividends when promised.
Answers
Answer:
D. the company does not have a legal obligation to pay dividends when promised.
Explanation:
Dividends are share of income distributed by the company to shareholders when the company performs good, and earns profit.
But since it is a distribution of income and not a mandatory payment, there might be chances that company do not pay dividends, and might retain the income earned for future growth prospects.
Thus, in order to earn money fast although the company promises to make dividend payments, but it shall be taken care, that the company will necessarily pay dividends.
Raj is the owner of a small real estate agency in New York City. He has four employees and wants to be able to evaluate each employee against the other employees. Which appraisal technique should Raj use?a) BARS
b) Graphic rating scale appraisal
c) Paired comparison
d) Checklist appraisal
e) Forced-choice appraisal
Answers
Answer:
Letter c is correct. Paired comparison.
Explanation:
The paired comparison evaluation technique occurs when a comparison analysis is performed considering a small range of options. It is an easy activity to perform and allows you to establish subjective judgment criteria according to a classification of alternatives.
For Raj, it would be a useful evaluation activity, as he has few staff members to evaluate against others, and can establish alternative classification criteria that will be effective in measuring and obtaining results according to his needs.
Raj should use the paired comparison appraisal technique to evaluate his employees, which allows for a relative ranking based on direct comparisons and helps reduce personal biases.
Raj, the owner of a small real estate agency in New York City who wants to evaluate his employees against each other, should use c) Paired comparison as the appraisal technique. This method allows Raj to compare each employee directly against every other employee, one pair at a time, to form a ranking. It minimizes the effects of rater biases by focusing on the relative performance of the employees rather than individual likability or personal challenges they may be facing.
Relative ranking appraisals are suitable for situations where the objective is to compare employees to one another, rather than evaluating them against a fixed standard or absolute rating. The paired comparison method aligns well with the Analytic Hierarchy Process (AHP) which also uses pairwise evaluations to rank alternatives. This technique would ensure that personal likability or other extraneous factors, as illustrated by the dilemma faced by James in the sample scenario, would have less impact on the appraisal outcome.
UPS, a delivery services company, has a beta of 1.6, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 6% and the market risk premium is 9%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?
Answers
Answer:
16.62%
Explanation:
First, use CAPM to find the expected return of each stock;
r= risk free + beta (market risk premium)
UPS;
r = 0.06 +(1.6*0.09)
r = 0.204 or 20.4%
Walmart;
r = 0.06 + (0.9*0.09)
r = 0.141 or 14.1%
Next find the return of portfolio;
Let UPS be represented by U and Wal-Mart by W
rP = wU*rU + wW*rW
P= portfolio
w= weight of...
r = return of....
rP = (0.40*0.204) + (0.60 * 0.141)
rP = 0.0816 + 0.0846
rP = 0.1662 or 16.62%
Therefore, the expected return on a portfolio is 16.62%
Clancy sells shares in Darling Pool & Spa Company to Eton. Clancy does not deliver the actual possession of the shares to Eton, but gives him the key to a safety-deposit box in First State Bank in which the stock certificates are locked. Presenting the key is_________.a. real delivery.b. constructive delivery.c. delivery by agent .d. no delivery.
Answers
Answer: constructive delivery
Explanation: In simple words, constructive delivery refers to the actions when one individual transfers the tile to other by operation of law when the actual delivery is not possible in the situation.
Such deliveries are a concern for the jury and are usually constituted by them as one needs a third party to study in detail the facts and law relating to the transfer.
Thus, from the above we can conclude that the correct option is B .
The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?
Answers
Answer:
$100,000
Explanation:
A triple indemnity clause attached to a life insurance policy should pay in case of accidental death three times the amount of the policy. But in order for this clause to be effective, the insured must not have any responsibility in the accident.
In this case, since the accident was caused by the insured, the triple indemnity clause doesn't apply, so the regular amount ($100,000) has to be paid to the beneficiary.
The beneficiary of the life insurance policy with a triple indemnity rider will not receive the triple indemnity benefit if the insured's fault caused the accident. They would only receive the regular death benefit of $100,000.
In this case, since the accident was determined to be the insured's fault, the beneficiary of the life insurance policy with the triple indemnity rider would not receive the triple indemnity benefit. The triple indemnity rider typically specifies that the death must not be contributed to by the insured in any manner. Since the insured's fault caused the accident and subsequent death, the beneficiary would only receive the regular death benefit of the life insurance policy, which is $100,000 in this scenario. The triple indemnity benefit, which would have provided an additional payout in the event of accidental death, would not be applicable in this case due to the insured's contribution to the accident.
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Steve owns a bike shop. He wants to increase the number of bikes he sells each week, and he wants to use a technological advance to do so. ________ would represent a technological advance at his bike shop. A. Increasing his inventory of helmets and accessories that he sells B. Increasing the number of bikes he holds in inventory C. Utilizing an online ordering system that allows him to sell bikes across the country D. Better training for his staff Increasing the number of employees
Answers
Answer:
C. Utilizing an online ordering system that allows him to sell bikes across the country
Explanation:
It is only through using an online ordering system that sales of the bikes can increase.
Also, using an online ordering system represents a form of technological advance.
What will happen over time if a firm uses its overall WACC to evaluate all projects, regardless of each project's risk level?
a) It will reject projects that it should have accepted
b) the firm overall will become riskier
c) the firm's risk will not change over time
d) it will accept projects that it should have rejected
e) using the firm's WACC to evaluate all projects is appropriate
Answers
Answer: Option A and D
Explanation: In simple words, weighted average cost of capital refers to the expected amount for the return that a company has to pay to all its security holders.
Weighted average cost of capital should be abducted as per the risk of the project that a company is willing to take as every prospect have different needs and requirements which directly affects the level of threat of capital loss.
For a high risk project WACC should be increased and vice-versa.
Both tariffs and quotas tend to – social welfare. That is, they increase – for domestic consumers and decrease – of the restricted good. In some cases, such as the U.S. shoe market, tariffs on cheap goods hurt – consumers the most, making the tariff an example of a regressive tax.
Answers
Answer:
The correct answer is: reduce; price; supply; poor.
Explanation:
A tariff is a tax imposed on the import of goods and services from another country. A quota is a quantitative restriction on the imports.
Both tariff and quotas decreases the supply of imported products. This causes their price to increase. This increase in price reduces the consumer surplus for the domestic consumers.
In some cases where tariff is imposed on cheap goods that are consumed mostly by the poor consumers hurt them the most. Tariff in such situations become an example of regressive tax.
In the long run, persistent deflation in a growing economy can occur if
A. increases in AD are proportionately larger than the increase in LRAS.
B. there is a temporary decrease in input prices.
C. AD increases regardless of what the LRAS does.
D. increases in the LRAS are proportionately larger than the increases in AD.
Answers
Answer:
The correct answer is option D.
Explanation:
Deflation refers to the process of decline in the general price level of an economy. Deflation causes the purchasing power of money and real income to increase.
It causes the price of goods, services, labor, and capital to decline. Borrowers are harmed because of deflation.
When the long-run aggregate supply increases proportionately more than the increase in the aggregate demand, the LRAS will shift to the right proportionately more than a rightward shift in the AD.
This will cause the equilibrium price level to decrease and equilibrium quantity to increase.
During an ice hockey game, Claude silently skates up to Gordie from behind and hits him over the head with his stick. Claude is promptly thrown out of the game and suspended by the league. Gordie is not injured because he is wearing a helmet. If Gordie sues Claude, Claude would be guilty of__________.
Answers
Answer:
battery
Explanation:
Based on the information provided within the question it can be said that If Gordie sues Claude, Claude would be guilty of battery. In the context of criminal behavior, Battery refers to the crime of being aggressive and making contact with another person, with or without his or her consent. It is a type of assault charge but the person must have made physical contact with the victim.
You have a goal of having $270,000 four years from today. The return on the investment is expected to be 8% and will be compounded semi-annually. The amount that needs to be invested today is closest to: (FV of $1,PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
A) $180,000.
B) $197,989.
C) $135,000.
D) $197,289.
Answers
Answer:D $197,289
Explanation:
Compounding a present value for a future sum is calculated thus:
FV= PV(1+r/n)^nt
FV= $270,000
Rate= 8%
Time= 4yrs
Compounded semi annually
$270,000= PV(1+0.08/2)^2*4
270,000=PV(1.04)^8
270,000=PV(1.368569050405)
270,000/1.3685690504052736
PV= 197,289
If total current assets are $140,000 at the end of Year 1, increase by $50,000 by the end of Year 2, and increase by $50,000 in Year 3, the percentage increase over the preceding year is less in Year 3 than in Year 2.
Answers
Answer:
True
Explanation:
As the assets increase by $50,000 in year 2 on the basis of $140,000
The percentage increase = $50,000/$140,000 = 35.71%
In the year 3, the basis will be $140,000 + $50,000 (increase in year 2) = $190,000
Thus, in the year 3 the percentage increase in assets = $50,000/$190,000 = 26.32%
This clearly shows that the percentage increase is more in Year 2 than year 3, because the increase value is same but the basis has increased for Year 3, which is in denominator.
Peachtree Company borrows $30,000 from the local bank at 7% interest. The term of the note is five years, and the annual payments remain constant at $7,317. Determine the interest expense Peachtree Company should record in the second year.
a. $1,735
b. $2,100
c. $7,317
d. $5,217
Answers
Answer:
a. $1,735
Explanation:
Year 1;
$30,000 is the loan amount borrowed(Principal) which means that it is the beginning balance.
If payment per year = $7,317,
Portion of PMT that goes towards Interest expense = 7%*30,000 = $2,100
Portion of PMT that goes towards Principal payment = $7,317 - $2,100 = $5,217
Ending balance yr 1 = $30,000 - $5,217 = $24,783
Year 2;
Beginning balance = $24,783
Payment per year = $7,317
Portion of PMT that goes towards Interest expense = 7% *$24,783 = $1,734.81
Therefore, interest expense that Peachtree Company should record in the second year is $1,735
ABC would like to market their products in Brazil. Armed with the design and manufacturing capability, ABC is looking for a company with the distribution channels and knowledge of the Brazil culture necessary to market their products. ABC has decided to form a partnership with XYZ in Brazil. The company will be jointly owned and independently operated. Which of the following is ABC forming with XYZ?
a. Franchise
b. Joint venture
c. Licensing agreement
d. Operating subsidiary
Answers
Answer: Joint venture
Explanation: In simple words, joint ventures refers to the business arrangement in which two separate entities join their operations for a single venture with the intent of earning monetary benefits or other such benefit as such.
In such an arrangement the two entities join their operations but keep their entities separate for their existing businesses. In the given case, ABC and XYZ have joined their operations in relation to each pother needs with the common goal of earning profits.
Hence the correct option is B .