Business

A profit-maximizing decision must be made about whether to keep a bed & breakfast operating. Until the place sells, the mortgage of $3000/month must be paid, since it is a sunk cost. If the restaurant operates, costs rise by $4000 per month, but revenue will be only $6000 per month. Until the building can be sold,a.it is best to shut down the bed & breakfast since it is taking a loss.b.it is best to ignore sunk costs and keep the bed & breakfast operating.c.it is best to shut down the bed & breakfast even though it is making a profit d.it is best to keep the bed & breakfast operating because it is profitable.
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The distinction between substitutes and complements is A. substitute goods are used together while complementary goods are used for the same purposes. B. when income increases, demand for a complementary good decreases while demand for a substitute good increases. C. substitute goods are used for the same purposes while complementary goods are used together. D. when income increases, demand for a substitute good increases while demand for a complementary good falls.
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Elmo Inc.'s stock is currently selling at $ 60.68 per share. For each of the following situations (ignoring brokerage commissions), calculate the gain or loss that Courtney Schinke realizes if she makes a 100-share transaction. (Enter all losses as negative numbers.) a. She sells short and repurchases the borrowed shares at $ 68.44 per share. b. She takes a long position and sells the stock at $ 78.72 per share. c. She sells short and repurchases the borrowed shares at $ 43.16 per share. d. She takes a long position and sells the stock at $ 60.68 per share.
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A loan is being repaid in five annual payments. The first two payments are $200. The third and fourth payments are $400. The final payment is $500. The annual effective interest rate is 6%. Determine the interest portion of the third payment.
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The term "race to the bottom" refers to: a. Seeking to mine valuable minerals from the bottom of the ocean. b. Moving production jobs to the country with the lowest labor cost. c. Efforts to deconstruct the assembly process in manufacturing industries. d. An old concept of globalization that is no longer relevant.
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True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)
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Which of the following are steps in the warehouse management process?a. Create goods receiptb. Confirm transfer orderc. Create stock transfer orderd. Create transfer requiremente. Post goods issue
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Hokey Min's Kleen Karpet cleaned 85 rugs in October, consuming the following resources: Labor: 520 hours at $17 per hour Solvent: 100 gallons at $5 per gallon Machine Rental: 22 days at $60 per daya) Labor productivity per dollar = ---- rugs/dollar b) Multifactor productivity = ----- rugs/dollar
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At age 32 you invest $1,500 that earns 9 percent each year. At age 47 you invest $1,500 that earns 12 percent per year. In which case would you have more money at age 65?
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__________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input).
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In the implementation phase of the marketing process, ethics can be introduced by _______. a. including ethical statements in the firm's mission and vision b. statements policing the violation of human rights and child labor laws c. encouraging employees to exhibit ethical behavior d. putting systems in place to check ethical issues and react to changes
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wist Corp. has a current accounts receivable balance of $330,800. Credit sales for the year just ended were $3,804,200. a. What is the company's receivables turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) b. What is the company's days' sales in receivables? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) c. How long did it take on average for credit customers to pay off their accounts during the past year? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
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A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.40% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments?
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One concern of multisource rating is that those peers who rate poor-performing coworkers tend to inflate the ratings so that the peers themselves can get higher overall evaluation results in return
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Regarding OCBs, which of the following statements is TRUE?(A) Workers OCBs have no influence on managers judgments of their job performance.(B) Workers OCBs influence managers judgments of their job performance.(C) OCBs account for limited variance in the scores of workers.(D) OCBs are always a positive influence on job performance ratings.
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Major Programming receives $5,000 cash in advance of providing programming services to a customer. Describe how to record the transaction to the T-accounts by completing the following sentence. Cash would be
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Castle State Bank has the following financial information. Balance Sheet Income Statement Cash $100 Interest Income $400Securities Investments $600Interest Expenses($150)Net Loans$1200Non-Interest Income$50Net Premises and Equip.$300Non-Interest Expenses($100) Total Assets$2200Provision for Loan Losses($60)Deposits $1100 Pre Tax Net Operating Income$140Non-Deposit Borrowings *$800Securities Gains (Losses)($40)Equity Capital$300Taxes($45) Total Liabilities and Equity$2200Net Income$55* Use this information to calculate Castle State Bank's equity multiplier
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Deep level acting is less psychologically costly than surface level acting because in deep level acting, we are actually trying to experience the emotion, so we ________.
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Pure Water's complete assets and liabilities are Accounts Receivable ($3,000), Equipment ($7,500), Accounts Payable ($4,000), Prepaid Rent ($3,000), Supplies ($500), Bank Loan ($1,600), and taxes payable ($1,000). Pure Water's total liabilities are:
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The mid-1990s saw a rise in the use of mobile phones in the general population. The technology continued to improve in the early 2000s and in the mid-2000s smartphones revolutionized the way people communicated. The technology has changed very rapidly and improved the lives of consumers. With these rapid changes, what would you suspect has happened to the CPI calculation?a. The CPI has overstated the cost of living because of income bias.b. The CPI has understated the cost of living because of quality improvement bias.c. The CPI has overstated the cost of living because of quality improvement bias.
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Elba Company leased machinery to Conecuh Company on January 1, 2017, for a ten-year period expiring December 31, 2026. Equal annual payments under the lease are $300,000 and are due on January 1 of each year. The first payment was made on January 1, 2017. The rate of interest used by Elba and Conecuh is 9%. The cash selling price of the machinery is $2,100,000 and the cost of the machinery on Elba's accounting records was $1,860,000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Elba, what amount of interest revenue would Elba record for the year ended December 31, 2017?A. $0B. $162,000C. $189,000D. $81,000
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Chaos State Bank has an old computer system which can go down for weeks at a time, leaving customers unable to access their accounts online. Many customers have left the bank for banks with more reliable computer systems. Which type of risk would this be an example of_____________A. Operational riskB. Legal riskC. Compliance riskD. Strategic riskE. Reputation risk
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_______ are special-purpose printers that use output from graphics tablets or other graphical input devices that are typically found in architectural and engineering environments.
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Which of the following does not describe a trial balance? a. Proves that all transactions have been recorded b. Proves the mathematical equality of debits and credits after posting c. Assists in the preparation of the financial statements d. May uncover errors in journalizing and posting
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