MGTA01H3 Lecture 2: Lecture 2 - factors of production

95 views6 pages

pearwater-buffalo542

25 May 2011

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

noahrosa0429 and 39878 others unlocked

MGTA01H3 Full Course Notes

Verified Note

14 documents

Document Summary

Purpose of businesses are to make sure the money coming is more than the money spent. businesses that are extremely profitable, loads of people pay a lot of money for their products and services; the business makes a lot of money (example: microsoft) american auto workers are very well paid. one of the problems were that the gm and chrysler were paying their workers a lot. revenues were not as high as they could"ve have been and expenses were also high and they made a big loss: factors of production. fa c t o r s of p r o d u c tio n. mcdo n al d s h a v e t o b u y h a m b u r g e r b u n s ; m a d e of w h e a t.

Related Questions

To create value for shareholders via diversification, a company must
A) get into new businesses that are profitable.
B) diversify into industries that are growing rapidly.
C) spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
D) diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
E) diversify into businesses that have either key success factors or value chains that are similar to their present businesses.

greenwallaby126

A diversified company's business units exhibit good financial resource fit when

A.the resource requirements of each business exactly match the company's available resources.

B.each business is a cash cow.

C.a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall strengths. each business is sufficiently profitable to generate an attractive return on invested capital.

D.each business unit produces large internal cash flows over and above what is needed to build and maintain the business.