What are some ways to make a distribution channel more efficient?

June 30, 2024 No Comments

A: While there are many ways to make a distribution channel more efficient, the three high-level ways to increase the efficiency of a distribution channel are increasing or carefully picking the channel intermediaries, increasing the focus on supply chain management or consolidating the various distribution

What are some examples of horizontal integration?

June 30, 2024 No Comments

A: One of the clearest examples of horizontal integration is Facebook’s acquisition of Instagram in 2012 for a reported $1 billion. Both Facebook and Instagram operated in the same industry and were in similar production stages in regard to their photo-sharing services. Facebook, looking to

What are some examples of industries that cannot claim cost of goods sold (COGS)?

June 30, 2024 No Comments

A: Generally speaking, the Internal Revenue Service, or IRS, allows you to deduct the cost of goods that you either make or purchase to sell or resell for your business. For accounting and tax purposes, these are listed under the entry title cost of goods

What are some examples of items that count as comprehensive income?

June 30, 2024 No Comments

A: In business accounting, other comprehensive income, or OCI, includes those revenues, expenses, gains and losses that have not yet been realized. A basic example is a portfolio of bonds that have not yet been sold. Gains or losses from changing value of the bonds

What are some examples of just in time (JIT) inventory processes?

June 30, 2024 No Comments

A: Examples of just in time, or JIT, inventory processes are found in automobile manufacturing, drop shipping retailers, fast food restaurant production and on-demand publishing. The JIT inventory system was popularized by Toyota Motor Company in the 1970s. It is an alternative to the more

What are some examples of preferred stock, and why do companies issue it?

June 30, 2024 No Comments

A: There are several reasons why a company chooses to offer preferred stock, all of which relate to the financial advantages that it provides. Companies offering preferred stock include Bank of America, Georgia Power Company and MetLife. Preferred stock derives its name from the fact

What are some examples of risk management techniques?

June 30, 2024 No Comments

A: Business risk comes in a variety of tangible and intangible forms over the course of the business life cycle. Some risks occur during the ordinary course of business operations, while others are due to extraordinary circumstances that are not easily identified. Regardless of a

What are some examples of successfully executed leveraged buyouts?

June 30, 2024 No Comments

A: In finance, a buyout refers to the purchase of a company’s voting stock in which the acquiring party gains control of the target company. A buyout can be funded with a combination of cash or debt. Buyouts that are disproportionately funded with debt are

What are some examples of the main types of capital expenditures (CAPEX)?

June 30, 2024 No Comments

A: A capital expenditure (CAPEX) is the expenditure of funds or assumption of a liability in order to obtain physical assets that are to be used for productive purposes for at least one year. Depreciation is used to expense the fixed asset over its useful

What are some examples of ways that sensitivity analysis can be used?

June 30, 2024 No Comments

A: Sensitivity analysis is an analysis method that is used to identify how much variations in the input values for a given variable will impact the results for a mathematical model. Sensitivity analysis can be applied in a number of different disciplines, including business analysis,

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