Question

Time Value of Money (TVM)

Please answer the following questions. The aim here is to discuss. Where appropriate please support your claims with data. Amazon acquired Whole Foods Market. How would you evaluate the impact of TVM on this transaction?

Answer 1

It is a multinational technology company focused on cloud computing, e - commerce ,artificial intelligence etc.the concept is acquisition of whole foods market by a single firm .if it happen ,there are several advantages & disadvantages.

main benefit is for the company because the company can become Monopoly (Monopoly means ,firm without competitor). If there is no competitor the firm can increase charge for the service like food delivery or rate of food etc.By this way the firm can earn more profit.

Main disadvantage for customer .because they should pay more amount to buy the food compared to earlier years.it is difficult to suffer by middle class & poor people. They will reduce buying .then the number of customers will reduce to firm.so that it may cause loss to the company. And other main disadvantage is unemployment ,if a single firm acquire all foods market the employee of other market will become unemployed. Therefore the acquisition of all food market by a single firm is dangerous to society.

Summary:

Evaluation the impact of acquisition of every foods market by a single firm.