1. Compare and contrast the theories of the firm developed by Alchian & Demsetz and Hart. Property rights is the focus of Alchian and Demsetz’s Theory of the firm‚ it considers the possibility that‚ when output is commonly shared‚ individuals faces the incentive to shirk as it is often difficult to observe individual output‚ and the consequence of shirking is bared by all members of the team. Hence monitoring and supervision is required in team production. Given the cost of monitoring and supervision
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The protagonists Clara and Aubergine of the The Prospectors by Karen Russell have a mutually beneficial relationship‚ but to a greater extent‚ one grounded in necessity. I will be linking this relationship to the archetypal relationship between an innocent maiden and an enabler. The innocent maiden is Clara and Aubergine is the enabler; throughout the story Aubergine entices Clara and pushes her to using her charm at parties. However‚ that is not to say that Aubergine did not need Clara. Clara and
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Transaction Cost Economics and Resource Based View theories in terms of their usefulness in explaining firms’ internationalization strategies. Two Nobel Prize winners have extensively contributed to one of the theories that will be discussed in this essay. It is very exciting to access Transaction Cost Economics and Resource Based View theories in terms of their usefulness in explaining firms’ internationalisation strategies. This assessment will be based on two American companies: Harley Davidson-motorcycle
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Rules of Merger & Demerger _________________________________________ 1. These rules are called Rules of Merger & Demerger amongst the Firms registered with The Institute of Chartered Accountants of India. 2. Concept of Merger & Demerger: i) The Partnership Act has not prescribed merger & demerger of partnerships. In the corporate world‚ merger and demerger have become universal practices for securing survival‚ growth‚ expansion and globalization of enterprise and achieving multitude
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credit was too great that it lead to firm being unable to meet its obligations. Customers In this market during the difficult economic period the bargaining power of customers in the marker was strong against that of the firms. Ultimately the supply became higher than demand in the market‚ and Hallam’s customers were able to exercise a degree of pressure on the margins they were able and willing to pay on projects. Given the need to maintain cash flow in the firm‚ Hallam had little choice but to accept
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A Model of Distributor Firm and Manufacturer Firm Working Partnerships Author(s): James C. Anderson and James A. Narus Source: Journal of Marketing‚ Vol. 54‚ No. 1 (Jan.‚ 1990)‚ pp. 42-58 Published by: American Marketing Association Stable URL: http://www.jstor.org/stable/1252172 . Accessed: 21/12/2013 11:59 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit
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Analysis 1 Why does firm performance differ? Updated: 30 Aug. 2006 ©Scott Gallagher 2004 Internal Analysis Earlier we explained differences in firm performance as being a function of their external environment. However‚ this is only part of the story. Obviously‚ each firm has some unique aspects. Internal analysis is an attempt to explain how and why these internal differences explain differences in firm performance. Resources and Capabilities. Economics generally models firms as generic black boxes
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Internal economies of scale arise when firms increase their scale of production. Hence‚ they incur lower average costs of production‚ either through specialization or other factors. When average costs fall‚ giving the price of the good to be constant‚ profit margins of these firms will be increased. Thus‚ the individual firm benefits from internal economies of scale. External economies of scale arise when all firms in an industry experience decreasing average costs of production‚ which can be
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Strategic competitiveness is a type a strategy that certain firm can plan to achieve their organizational goals even though there are a lot of competitors around them. It can be achieved when a certain company or firm successfully come out with a special ideas or strategy that can allows the firm to create wealth to its organization when it is implemented or in other word‚ implementing value-creating strategy. Usually‚ in implementing strategic competitiveness‚ other companies are unable to duplicate
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current asset ratio along with their acid test ratio from the years 2003 to 2004. The acid test ratio shows whether a firm has enough short terms assets to cover its long-term liabilities without having to sell its stock. The Current Asset Ratio shows that ability for a firm to pay its short-term obligations. With both of these having an increase‚ this is a good thing for each firm in terms of being in a good position to be able to make the profit or have the ability to make a profit. GSK have
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