I. In each of the following two scenarios, what type of transaction is involved? (spot exchange,...

I. In each of the following two scenarios, what type of transaction is involved? (spot exchange, contract, or vertical integration). Explain your answer.

3. XYZ Corporation a big automobile company purchases Mich Tires, a local tire company.

4. Each year LAREDO bell, a new fast food company, has a legal obligation to purchase 0.5 billion pounds of potatoes from AGRI Expert located in San Antonio.

Solutions

Expert Solution

Answer:

1. Vertical Integration

Vertical integration means a target company has its own manufacturing plants and store brands. The company will create, distrubute and sell the product.

So, here ABC company is producing its own ingredients to make its product-Burger very popular. So, it suits vertical integration definition, making it the right answer choice.

2. Contract

XYZ corporation which is a big automobile company has purchased 4 million dollars of tires from Mich, a local tire company. By definition contract means, it is a promise made orally or in written agreement between two parties, who agree to do something in favour of each other.

it could be sale, employment or tenacy. In this case, one party gave the product and other party gave money in return to that. So, right

It couldn't be spot exchange because by definition the term spot exchange means to buy one currency against selling another currency, but not product.

In the given situation, only one currency i.e. dollar is mentioned and no other currency topic mentioned. So, wrong.

NOTE:PLEASE 'UPVOTE' IF YOU LIKE MY ANSWER AND IF IT HELPED YOU

Rahul Sunny answered 1 month ago

Next > < Previous

Related Solutions

In each of the following two scenarios, what type of transaction is involved? (spot exchange, contract,...

In each of the following two scenarios, what type of transaction is involved? (spot exchange, contract, or vertical integration). Explain your answer. XYZ Corporation a big automobile company purchases Mich Tires, a local tire company.

In each of the following scenarios, tell if the researcher has committed a Type I error,...

In each of the following scenarios, tell if the researcher has committed a Type I error, a Type II error, or made a correct decision. a. A researcher is testing to determine if .31 of all families own more than one car. His null hypothesis is that the population proportion is .31. He randomly samples 600 families and obtains a sample proportion of .33 that own more than one car. Based on this sample data, his decision is to fail...

Wht the answer B is not correct A foreign exchange swap: A) Involves a spot transaction...

Wht the answer B is not correct A foreign exchange swap: A) Involves a spot transaction in conjunction with a forward reverse transaction. The parties agree on the rate governing which the latter transaction at the time of swap formation B) Involves a spot transaction in conjunction with a forward reverse transaction and periodic exchanges of pre-agreed amounts C) Involves periodic exchanges of pre-agreed amounts based on a notional principle D) Has no benefits compared to an option contract or...

For each of the scenarios below, select whether a correct decision, a type I error, or...

For each of the scenarios below, select whether a correct decision, a type I error, or a type II error was made. 1- A marketing manager determines that an increase in expenditure for a particular stream of social-media marketing will not result in an increase in the number of customers reached by that stream. After increasing the expenditure, the manager installs a tracking app that confirms the number of customers reached has not increased. 2-Looking at the results of an...

For each of the following scenarios, list the purpose(s) of the visualization and the type(s) of...

For each of the following scenarios, list the purpose(s) of the visualization and the type(s) of visualization that would best fulfill the purpose(s). Justify your choice. a. A stock analyst is showing a potential customer how projected returns from various mutual funds will affect the size of retirement savings over time. b. A tax accountant is showing the CFO how the accumulated effect of asset depreciation differs using Modified Accelerated Cost Recovery System (MACRS) depreciation, straight-line depreciation, accelerated depreciation, and...

For each of the following scenarios, list the purpose(s) of the visualization and the type(s) of...

For each of the following scenarios, list the purpose(s) of the visualization and the type(s) of visualization that would best fulfill the purpose(s). Justify your choice. (a) A stock analyst is showing a potential customer how projected returns from various mutual funds will affect the size of retirement savings over time. b. A tax accountant is showing the CFO how the accumulated effect of asset depreciation differs using Modified Accelerated Cost Recovery System (MACRS) depreciation, straight-line depreciation, accelerated depreciation, and...

Exchange vs Nonexchange Transactions Classify each transaction below as exchange or nonexchange. If it is a...

Exchange vs Nonexchange Transactions Classify each transaction below as exchange or nonexchange. If it is a nonexchange transaction, classify it in one of the four categories of nonexchange transactions. Explain your answer. 1. Merchant collects state cigarette tax on sale of a pack of cigarettes. 2. State reimburses schools for costs related to special education of handicapped children. The school must verify eligibility of the children. 3. State fines for hunting illegally on protected state wildlife preserve. 4. City property...

7.Are the following scenarios one-tail or two-tail tests? Explain why for each. a) If I don’t...

7.Are the following scenarios one-tail or two-tail tests? Explain why for each. a) If I don’t have enough money to pay the bill I’m going to look like a jerk on my big date. b) I’m handing out beer coupons and will get arrested if I give one to a minor. c) I’m distributing fliers for a new teen-oriented business in town and I don’t want to waste them on members of the wrong demographic. d) You’re placing a food...

Market structures For each of the following scenarios, identify the number of firms present, the type...

Market structures For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each drop down box in the following table. A large city has lots of small shops where people can buy sweaters. Each store's sweaters reflect the style of that particular store. Additionally, some stores use higher-quality cotton than others, which is reflected in their price. Many Differentiated Monopoly Number of...

What is the Columbian Exchange? Which countries were involved in the Exchange? What was the impact...

What is the Columbian Exchange? Which countries were involved in the Exchange? What was the impact of the silver trade on the world economies in the sixteenth century?

Subjects