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Watson Corporation Is Considering Buying a Machine for $25,000

question 92

Multiple Choice

Watson Corporation is considering buying a machine for $25,000. Its estimated useful life is 5 years, with no salvage value. Watson anticipates annual net income after taxes of $1,500 from the new machine. What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year?

Understand the basic concepts and differences between monopolies and competitive markets.

Explain the role and impact of supply curves in pure competition and monopoly.

Interpret the effects of monopoly on pricing and economic profits.

Discuss personalized pricing and the role of Big Data in online retail.

Definitions:

Informal Structures

Unofficial relationships and networks within an organization that influence decision-making, information flow, and culture, apart from the formal hierarchy.

Hybrid Structure

An organizational model that combines elements of more than one organizational structure, such as matrix and divisional structures, to benefit from their strengths.

Global Product Organizations

Global product organizations design, produce, and market their products and services on a global scale, taking into account the diverse needs of consumers in different countries.

Divisional Structure

An organizational layout where operations are divided into semi-autonomous units or divisions, each focusing on a specific aspect of the business.