# The theory of _____, developed by Michael Porter, focuses on the importance of country factors, in addition to factor endowments, such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products.

Explanation:

American Professor Michael Porter (born in 1947) proposed the National Competitive Advantage Theory to give an idea of why some countries achieve success in determined industries compared to others. The theory, in other words, aims to explain nations' competitive advantage and the path to reach it.

Also known as Porter's Diamond Model, the factors Porter based his concept on are firm strategies, structure and rivalry; related industries; demand conditions; and, factor conditions.

## Related Questions

Pendergast, Inc., has no debt outstanding, and has a total market value of \$180,000. Earnings before interest and taxes (EBIT) are projected to be \$23,000 if economic conditions are normal. If there is a strong expansion in the economy, then EBIT will be 20% higher. If there is a recession, then EBIT will be 30% lower. Pendergast is considering a \$75,000 debt issue with a 7% interest rate. The proceeds will be used to repurchase shares of stock. There are currently 6,000 shares of stock outstanding, and the relevant tax rate is 35%. a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued. b- Repeat part a, assuming that the company goes through with the capitalization. c- Calculate the percentage changes in EPS when the economy expands or enters a recession.

See the explanation below:

Explanation:

a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.

Under an expansion

Earnings before interest and taxes (EBIT) = \$23,000 * (100% + 20%) = \$27,600

Earnings after taxes = \$27,600 * (100% - 35%) = \$17,940

Return on equity (ROE) = Earnings after taxes / Total market value of equity = \$17,940 / \$180,000 =

0.0997, or 9.97%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = \$17,940 /

6,000 = \$2.99 per share

Under a recession

Earnings before interest and taxes (EBIT) = \$23,000 * (100% - 30%) = \$16,100

Earnings after taxes = \$16,100 * (100% - 35%) = \$10,465

Return on equity (ROE) = Earnings after taxes / Total market value of equity = \$10,465 / \$180,000 =

0.0581, or 5.81%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = \$10,465 /

6,000 = \$1.74 per share

b- Repeat part a, assuming that the company goes through with the capitalization.

Under an expansion

Earnings before interest and taxes (EBIT) = \$23,000 * (100% + 20%) = \$27,600

Interest on debt = \$75,000 * 7% = \$5,250

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Earnings after interest = \$27,600 - \$5,250 = \$22,350

Earnings after taxes = \$22,350 * (100% - 35%) = \$14,527.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = \$14,527.50/ \$180,000 =

0.0807, or 8.07%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = \$14,527.50 /

6,000 = \$2.42 per share

Under a recession

Earnings before interest and taxes (EBIT) = \$23,000 * (100% - 30%) = \$16,100

Interest on debt = \$75,000 * 7% = \$5,250

Earnings after interest = \$16,100 - \$5,250 = \$10,850

Earnings after taxes = \$10,850 * (100% - 35%) = \$7,052.50

Return on equity (ROE) = Earnings after taxes / Total market value of equity = \$7,052.50 / \$180,000 =

0.0392, or 3.92%

Earnings per share (EPS) = Earnings after taxes / Number of shares of stock outstanding = \$7,052.50 /

6,000 = \$1.18 per share

c- Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage change under expansion = (\$2.42 - \$2.99)/\$2.99 = 0.1902 decrease, or 19.02% decrease.

Percentage change under recession = (\$1.18 - \$1.74)/ \$1.74 = 0.3218 decrease, or 32.18% decrease

LO 1.3Briefly discuss the chain of command for someone being hired into an organization as a staff managerial accountant.

A staff managerial accountant is part of the mid-level accounting management.

The top position in the chain of command is the Chief Financial Officer, who is in charge of all financial matters within the firm, especially of presenting accurate financial information at the end of the accounting year to management, stockholders, and potential investors.

Directly below him is the controller, an important position in charge of reporting financial statements during the year, and helping gather information for auditors during external audtis.

Below a staff managerial accountant would be lower level accounting who are in charge of bookeeping on a daily basis.

Problem 10-13 (Algorithmic) Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,800 copies. The cost of one copy of the book is \$13.5. The holding cost is based on an 17% annual rate, and production setup costs are \$135 per setup. The equipment on which the book is produced has an annual production volume of 26,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 14 days. Use the production lot size model to compute the following values: Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values.

The minimum cost production lot size = 2447.75

Explanation:

Given

D = Demand = 7,800 copies.

C = Setup costs = \$135 per setup.

A = Cost = \$13.5.

R = Holding Cost Annual Rate = 17%

P = Production volume = 26,000 copies.

W = Working days = 250 per year

L = Lead time for a production run = 14 days

First we calculate the usage rate.

The usage rate = Annual rate of demand ÷ Working days

Usage Rate = 7500 ÷ 250 = 30 units daily

Then we calculate the production units

Production (P) = Annual Production Volume ÷ Working days

P = 26000 ÷ 250 = 104 units daily

Then we calculate the cost production lot size

This is calculated by

Cost production lot size = √(2DC)/√(1 - (D/P)R * A)

By substituton

Cost Production = √(2 * 7500 * 135)/√(1 - (7500/26000) * 0.17 * 13.5)

Cost Production = 2447.746953702503

Hence, the minimum cost production lot size = 2447.75 --- Approximately

Which of the following statements is not true of a strategic inflection point?A) The term was coined by Andy Grove, past CEO of Intel Corporation
B) This represents what happens to a business when a major change takes place due to the introduction of new technology
C) This represents what happens to a business when a major change takes place due to a change in customers' values or a change in what customers prefer
D) This represents what happens to a business when a major change takes place due to a differentregulatory environment
E) A new CEO is an example of a strategic inflection point.

The correct anwer is E) A new CEO is an example of a strategic inflection point.

Explanation:

The statement that "A new CEO is an example of a strategic inflection point" is false since to determine a strategic inflection point we rely on other factors that affect companies such as the power of competitors, the power of customers, the power of potential competitors, the power of suppliers and the power of substitutes.

For example, if my product or service is exceeded 10 times more by the competition in quality or price; we are talking about a strategic inflection point.

Trowel Corp. has outstanding accounts receivable totaling \$13,000,000 as of December 31 and sales on credit during the year of \$48,000,000. There is also a credit balance of \$24,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year

\$756,000

Explanation:

Allowance for Bad Debts opening        (\$24,000)

Allowance for Bad Debts Closing         \$780,000

(13,000,000)*6%

Allowance Bad  Debt Expense for the year  \$756,000

True or false: it’s always immediately obvious when boundaries are crossed in a relationship.

Answer: i’m pretty sure it’s true.

Explanation:

a change in the way they act towards you is an example.

The statement "it's always immediately obvious when boundaries are crossed in a relationship" is false.

Boundaries being crossed in a relationship can often be subtle and gradually escalate over time.

### Explanation:

The statement "it's always immediately obvious when boundaries are crossed in a relationship" is false.

Boundaries being crossed in a relationship can often be subtle and gradually escalate over time, making it difficult to recognize the signs.

Sometimes, people may not even be aware that their boundaries have been violated. Additionally, cultural and societal norms can influence how boundaries are perceived.

It is important to establish and communicate boundaries in relationships, as well as to be aware of any signs of boundary violations, such as feeling uncomfortable, disrespected, or manipulated.