Josh Adams Runs a Large Cattle Farm in Texas

question 171

Multiple Choice

Josh Adams runs a large cattle farm in Texas.In order to take advantage of higher prices for beef in Europe compared to the United States,he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U.S.firms.He ships the cattle to Europe by water transport.Josh is involved in:

• A) exporting.
• B) management contracting.
• C) licensing.
• D) joint venturing.
• E) franchising.

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Definitions:

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle.

Fixed Capacity

The maximum output that a facility can produce in a given period under normal circumstances, without changing the physical setup.