G deals mostly in selling books in a large retail setting, however they implement a concept that is more community-based. Company H deals in a variety of media, including books, music, and video along with electronics and other varieties of merchandise. Not only does Company H differ in merchandise variety, but it also differs from Company G in that it is internet-based only and is highly interested in further corporate acquisitions-?very different from Company G’s “community store concept”.
Burner, Decades, ; Chill, 2010, up. 96-97). Since Company H has a variety of merchandise to sell, along with its interest in acquisitions; it has a significantly higher level of net fixed assets than that of Company G. Acquisitions will always increase the level of net fixed assets. Since Company G tends to implement a strategy that does not favor large acquisitions, its level is lower at a level of 7. 6 versus 24. 4 in Company H.
Company H also exceeds Company G in most of the liabilities action, which automatically gives Company H a leg up in being able to take on more liabilities such as credits and loans. However, Company G comes out winning In terms of income and expenses, with a net Income of 8. 5%. Company He’s net Income ended at 2. 9%. This also relates to lowered percentage of SO&A expenses on Company G’s side, higher interest Income, special items Income, and its lower percentage of income taxes. Company.
