TrueFalsePartnership structures are commonly used for the following type of businesses otherthan:manufacturing firmslaw firmsconsulting firmsO accounting firms Time Taken:0:50:01Anthony Annoreno: Attempt 1Commercial banks are critical to an economy for the following reasons other than:O they move funds through timethey regulate the financial marketsthey help spread out riskO they efficiently take in deposits and make loans

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Try to classify the following firms into one of the fourmarket structure models. Explain your choice.a. Rowena’s gourmet foods (produces and sells a lineof specialty foods)b. Shasta Pools & Spas (swimming pool and spabuilding)c. Merck (pharmaceuticals)d. US Airwayse. UDC Homes (builders)f. Legal Sea Foods (restaurant chain)
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In the 1970s, Nestle the Swiss based MNC manufacturer and distributor of food and beverage products, was accused of ‘hooking’ mothers of Africa onto the use of infant formula powdered milk for their babies rather than mothers’ breast milk. Given the powder had to be mixed with water and African water was impure many babies died. The structure of the Nestle organisation in Africa contained separate product, marketing and sales functions. It was a standalone business entity. So, the sales and product executives in Switzerland were not aware that the infant powdered milk was being ‘mis-sold’ and ‘mis-represented’ leading to dead African babies. Many commentators believed that it was the structure of the African business that was to blame as it had no oversight from Switzerland. It is fair to say that Nestle made significant and profound changes to its governance structure after this event. 1. Explain what you believe could have been lacking in the Nestle Africa business. Did they…
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