Explain Make-or-Buy Decision?

Q: What is the difference between a Put option and a Call option? Explain. Provide examples.

A: Option is a derivative instrument which gives a choice to its buyer to buy or sell the underlying…

Q: Explain what is Make-or-Buy Decision?

A: Decision making: It is a vital capacity in the management, since decision making is identified with…

Q: ecision?

A: Preferential decision making is a hot issue in psychology and economics right now. The goal of…

Q: What is a call option?

A: The contract that the option writer sells to the option holder is represented by an option, which is…

Q: Explain the issues involved in setting the bid price.

A: Bid price: The price that is offered for a commodity, service, and product is called bid price. It…

Q: Define pricing decisions.

A: Selling Price:   It refers to the price at which the product or service will be sold in the market…

Q: Which decision is called the abandonment decision?

A: Answer: The decisions relating to the company that provides flexibility to discontinue the project…

Q: Explain an example of sell or process of further decision.

A: Sell or process of further decision is taken to decide whether to sell a product a certain point in…

Q: When Decision making is affected by both personal perspective and characteristics this phenomenon…

A: Decision making is referred to as the process of making choices through an identification of the…

Q: What is option?

A: Options are the derivatives contract that gives investor discretion to sell or buy the assets like…

Q: What is intrinsic value or price?

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: Explain Disposition Decisions?

A: Patients' having the option to see through to their last disposition can be an overwhelming capacity…

Q: Describe the discounting process?

A: discounting is the process of determining the future value into present value, In discounting time…

Q: “JIT purchasing has many benefits but also some risks.” Do you agree? Explain briefly.

A: Just in time is the method of inventory management in which the inventory just arrives before the…

Q: 1. What are the differences between call and put options?

A:

Q: What are input flexibility options and output flexibility options?

A: The question is based on the concept of production process. The managers can use variation in Input…

Q: What is offer price?

A: Bid price is the maximum price which the buyer is willing to pay to purchase. In other words, it…

Q: What is flexibility option?

A: A financial instrument that provides the opportunity to the buyer and seller to purchase and sell…

Q: Is the accept-or-reject decision rule the same as in the simple -investment case? Explain how?

A: Yes, accept or reject decision rule is the same as in the simple investment because accept or reject…

Q: What are some types of real options?

A: Real options is defined as a capital budgeting decision with which the management may make a future…

Q: Explain put option

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: What is target pricing? Who uses it?

A: Target pricing: A pricing method which is used to identify the price at which the product will be…

Q: Define purchase option.

A:

Q: What are the limitations of TCE approach to the make or buy decision?

A: TCE Approach is Transaction Cost Economics Theory. It means an activity should be performed within…

Q: What is a bargain purchase option? How does it differ from other purchase options?

A: Purchase option: Purchase option is provision of certain lease contracts which provides the lessee…

Q: Give a detail example of option to expand

A: In order to expand the business operations and to invest in a particular project in the future with…

Q: Define the Make-or-Buy Decision?

A: A make or buy decision is to choose whether to manufacture the produce in-house or purchase it from…

Q: What issues should managers consider when making capitalstructure decisions?

A: Introduction: Capital structure is nothing but the debt and securities that are included in the…

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…

Q: What is the make or buy decision?

A: Managerial accounting:   Managerial accounting is more focused towards analyzing information and…

Q: evolution of purchasing development framework

A: Answer – Evolution of purchasing development framework – The product concept- This is from period…

Q: Identify some different types of real options and differentiateamong them.

A: Real Options are rights which enable  a manager to take a decision regarding business operations…

Q: What is frequency regarding the make or buy decision?

A: Make or Buy: Make or Buy decision are normal condition arises in front of management due to…

Q: Explain The Auction Process?

A: An auction is the place or thing where potential buyers and seller gather to publicly bid for the…

Q: Define Purchase commitments.

A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…

Q: Define put option

A: An Option is an contract sold by one party to another, that gives the buyer  the right, but not the…

Q: Explain planning decisions.

A: Planning is the process of selecting a future course of action by seeing what is to be done, when is…

Q: What should the transfer price be and why?

A: Given that: Transfer price as proposed by Top Division = $256 Price that is charge to outside…

Q: Discuss any other factors that should be considered when making a rent or buy decision

A: Renting or buying decisions is a huge decision that depends on various factors. People take…