Eastern Europe companies - 41836

Solution Posted by
bestwritter

bestwritter

Rating : (2)F
Solution Detail
Price: $15.00
  • From: Finance,
  • Posted on: Fri 31 Jan, 2014
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

1.      In parts of Eastern Europe, companies maintain special guards to protect payday funds, to help move products to market, and to enforce immediate payment for products sold to retailers. All of these features indicate:

Answer

a.       that property rights are respected and transactions costs are low.

b.      that property rights are weak and transactions costs are low.

c.       that property rights are weak and transactions costs are high.

d.      that property rights are respected and transactions costs are high.



2.      The transactions costs of writing and enforcing contracts are higher in:

Answer

a.       countries with poorly-enforced property rights.

b.      countries with strongly-enforced property rights.

c.       all counties with good court systems.

d.      countries without political risks of property confiscation.



3.      Firm specific assets, costs or measuring quality, externalities, and coordination problems all may mitigate against:

Answer

a.       vertical integration.

b.      long term markets.

c.       open markets

d.      efficient production methods.

4.      While firms buy many of their inputs through the open market, there is often a desire to produce critical inputs. A common concern in producing an input yourself (internally) is that:

Answer

a.       the firm will find it too easy to manage quality.

b.      the firm will not minimize costs at a high enough level of output.

c.       outside competitors will learn about your inputs.

d.      your firm will get prompt supply of the input.

5.      Adolph Berle and Gardiner Means argued that widely held corporations will be run inefficiently by professional managers. Yet large, publicly-traded corporations continue to produce the bulk of the free world's output. The widely held corporation survives because:

Answer

a.       it can raise capital from diversified investors.

b.      ownership and control are separated.

c.       government taxes large corporations at low rates.

d.      its size insulates it from market competition.

6.      If property rights are enforced and contracts in trade are legally respected, it is usually assumed that:

Answer

a.       output will begin to fall.

b.      investment will be encouraged.

c.       transactions costs will rise.

d.      government is unnecessary.

 

7.      Nonmarket transactions refer to:

Answer

a.       purchase in the a spot market.

b.      vertical integration.

c.       short term contracts.

d.      market power.

8.      If a firm purchases a part of its supplies on the open market, this is called:

Answer

a.       a spot market purchase.

b.      a long term contract.

c.       vertical integration.

d.      downstream integration.

9.      Economist Milton Friedman argued that ethical behavior is really the same as:

Answer

a.       unethical behavior.

b.      wealth maximization.

c.       wealth minimization

d.      ignoring the basic requirement of a market economy.

10.  Business norms:

Answer

a.       are standards of accepted behavior.

b.      are the same as equilibrium prices.

c.       are equivalent to contract laws.

d.      somewhat like business form

 

Solution Description

 

1.      In parts of Eastern Europe, companies maintain special guards to protect payday funds, to help move products to market, and to enforce immediate payment for products sold to retailers. All of these features indicate:
Answer

a.       that property rights are respected and transactions costs are low.

b.      that property rights are weak and transactions cos

Attachments
In parts of Eastern Europe QA.docx
In parts of Eas...