Related Questions
What is types of business?5answers
Businesses can be categorized into various types based on their operational models and structures. These types include sole proprietorships, partnerships, C corporations, subchapter S corporations, limited liability companies . Additionally, business models play a crucial role in determining how a company operates and generates profits. Common business model types encompass business-to-business, business-to-consumer, subscription-based, on-demand, direct sales, franchising, advertising-based, and brick-and-mortar stores, with hybrid models like internet retail combined with physical stores also prevalent . Management of business models is vital for a company's development, with different management typologies such as entrepreneurial, adaptive, and planning modes influencing decision-making processes . Recognizing different business types is essential for enterprises to identify risks and uncertainties, with core, auxiliary, peripheral, and market-oriented businesses being key categories . The primary, secondary, and tertiary sectors represent the main divisions of business activities, encompassing agriculture, manufacturing, and services respectively .
What are the cost categories? (direct, indirect and "invisible")?4answers
Costs can be divided into direct and indirect categories. Direct costs consist of medical costs, such as hospitalizations and pharmaceuticals, as well as non-medical direct costs like monitoring and caregiving. Indirect costs include lost productivity due to illness or treatment, burden on systems outside of healthcare, and other costs that can outweigh direct healthcare costs.
What other category of costs will a new business have?4answers
A new business will have various categories of costs. These include fixed costs associated with entering new markets, such as information costs, compliance costs, and other costs related to trade barriers . Manufacturing firms may also incur additional costs related to investments in plants, machinery, or equipment required for exporting . Service firms may need to invest in skills and technologies to adapt to foreign demand characteristics or tailor exports to local consumers' tastes and standards . Additionally, businesses may face costs associated with government regulation, including compliance costs and factors inhibiting performance . In the healthcare industry, violations of business ethics, inefficient resource use, market distortions, and legal monopolies can contribute to increased costs . Finally, businesses undergoing rescue may encounter costs related to dysfunctional management, unreliable information, and the need to determine what costs can be paid by the company .
What are the characteristics of different types of business?5answers
Different types of businesses have distinct characteristics. "Globally integrated companies" are formed through the integration of components of the value chain across multiple countries, either by outsourcing functions to third parties or by building and using supplier networks . Corporations with individual decisions (CIDs) are characterized by individual decision-making, while corporations with multi-person decisions (CMDs) involve decision-making by multiple individuals. CIDs are found to have higher efficiency than CMDs under the same conditions . Small businesses have undergone a change in perception, with increased recognition of their importance in economic progress and technical development. They are now seen as breeding grounds for new products, technologies, and industries . Business types can be recognized based on evaluation factors such as value, uniqueness, sustainability, competitiveness, and concentration. The AHP-ELECTRE method can be used for business type recognition, aiding enterprises in identifying different types of business and formulating appropriate strategies . Small firms, especially entrepreneurial ones, are considered important for long-term economic growth and welfare, despite their lower productivity and higher failure rates compared to large firms .
What are the different types of value chains that exist in the business world?3answers
There are five types of value chains that exist in the business world: market, modular, relational, captive, and hierarchy . Market governance is associated with traditional markets in LMICs where delivering a product does not require special skillsets or costly technology. Modular governance is seen when a product requires sophisticated production technology and specialised knowledge among producers. Relational governance occurs when powerful actors demand coordination due to the need for infrastructure and communication of product characteristics. Captive governance is observed when producing products like organic rice or maize, which require coordination among actors. Hierarchy governance is seen when a product requires coordination among powerful actors and a centralized decision-making structure .
Trending Questions
How does EBITDA and free cash flow affect stock prices in the US market?5answers
EBITDA and free cash flow play significant roles in influencing stock prices in the US market. EBITDA, as highlighted by Warren Buffett, is often associated with potential fraud and short-term focus, leading to distorted stock valuations . On the other hand, free cash flow (FCF) has been identified as a crucial metric for investors, particularly in the materials sector, with a specific definition showing a strong correlation with stock price changes over a 30-year period . Additionally, the disclosure of EBITDA has been found to reduce information asymmetry between managers and investors, enhancing the value relevance and predictive ability of earnings, especially in the presence of weak corporate governance . Furthermore, firm liability structures and cash flow exposure significantly impact stock price reactions to monetary policy announcements, indicating that financial market participants price stocks based on these factors .
How does the concept of capital structure theory apply to emerging economies?5answers
Capital structure theory plays a crucial role in understanding the financing decisions of companies in emerging economies. Studies on emerging market firms during the 2007-2008 financial crisis reveal that their capital structure decisions often deviate from traditional theories, with patterns of debt and equity reversals that do not align with existing models . Research focusing on Indian companies during the Covid-19 pandemic highlights the significant negative impact on long-term leverage ratios, indicating a shift towards risk aversion and reduced long-term debt to avoid bankruptcy in uncertain times . Furthermore, investigations into Chinese companies and other emerging markets emphasize the influence of factors like tangibility, growth rates, firm size, and government policies on capital structure decisions, showcasing the unique determinants at play in these economies . Additionally, a study on listed banks in African emerging economies underscores the positive relationship between capital structure and cash flow levels, advocating for the strategic use of capital structure to enhance cash flow in these regions .
What are the key indicators of sustainability in shared economy business models?5answers
Key indicators of sustainability in shared economy business models include the impact on social, environmental, and economic domains, as well as the efficiency of entrepreneurship, social component of business, and environmental awareness . The sharing economy's influence on sustainable development goals is assessed through indicators like the correlation with the unemployment rate for the social domain, waste generation for the environmental domain, and GDP for the economic domain . The sharing economy model enhances sustainability by transforming capitalism into an economy focused on private property, unlimited consumption, and joint consumption, thereby achieving sustainable development goals through improved efficiency, strengthened social components, and increased environmental awareness . Additionally, the sharing economy provides a new way of thinking about business models, exchange economies, value sharing, and community networks, contributing significantly to global sustainable development efforts .
How SAP MM implementation effect on inventory control in manufacturing companies?5answers
The implementation of SAP MM (Materials Management) can significantly impact inventory control in manufacturing companies by enhancing efficiency and accuracy in managing inventory levels . SAP MM provides a robust system for inventory management, enabling companies to meet customer demand, control costs, plan production effectively, ensure quality, and manage cash flow efficiently . Additionally, the use of information technology (IT) systems like SAP MM can improve organizational performance through better information sharing and inventory management practices, ultimately leading to improved punctual product delivery and overall company performance . Furthermore, internal control systems over material inventory, guided by standard operating procedures, play a crucial role in reducing the possibility of errors, fraud, and collusion in inventory management processes within manufacturing companies . Overall, the integration of SAP MM and effective internal control systems can optimize inventory control and contribute to the success of manufacturing companies.
Why working capital management is more important in economic slowdown?4answers
Working capital management is crucial during economic slowdowns due to its significant impact on a firm's performance and survival . Efficient management of working capital, as measured by metrics like the Cash Conversion Cycle (CCC) or Cash Conversion Efficiency (CCE), becomes essential for sustaining business operations and improving cash flows during challenging economic conditions . Research indicates that firms tend to reduce both working capital and fixed investments to asset ratios during downturns, with financially constrained firms adjusting more aggressively than others . Moreover, the relationship between working capital management and profitability is particularly pronounced in economic downturns, emphasizing the importance of active working capital management practices for firms' financial planning and overall performance . Therefore, adopting dynamic financing, trade credit policies, and continuous staff training in working capital management are crucial strategies for navigating the challenges posed by economic slowdowns .
