Answer:
The correct answer is C
Explanation:
CAC which stands for Command and Control Regulation, it is defined as the direct regulation which the industry or an activity through legislation states that what is permitted and what is illegal.
It requires the firms to install the anti pollution equipment and then increase the costs by reducing the output. It is successful in cleaning and protecting the US environment.
A stadium was fined $186,000 by the city due to the traffic issues that were caused by a stadium's inability to handle traffic flow adequately on game day. The stadium made $432,000 in parking revenue that day. The other parking expenses for that day totaled $163,000. What was the total profit for parking that day?
Answer:
$83000
Explanation:
Given: Stadium is fined for $186000
Other parking expense is $163000
Revenue generated by stadium in parking= $432000.
Now, calculating profit:
Profit= [tex]Revenue - expense[/tex]
Profit= [tex]432000-186000-163000= 432000-349000[/tex]
∴ Profit= $83000
∴ Total profit made for parking that day is $83000.
Answer:
$83,000
Explanation:
Judy is opening a small business producing high-quality paper products and decided to place a green pine tree on all product boxes and on the sign outside the facilities, to symbolize the business. At this point, the symbol is an example of a:
the symbol is use as the point
Explanation:
To purchase a house, Leo borrows funds from Metro Bank for a home in California. To secure the lender, the loan terms will provide the Metro Bank will be protected by a document recorded against the property. The recorded document will be:_____________.
a. a Deed of Trust.
b. a down payment.
c. a short sale.
d. predatory lending.
Answer:
A) a Deed of Trust
Explanation:
A deed of trust is a legal contract by which the borrower (in this case Leo) transfers the ownership of his property to a third party, called the trustee, until the total amount of the loan is paid back to the lender (in this case Metro Bank). The trustee is allowed to sell the property in case the borrower doesn't pay back the loan.
Jorah works as a technician at a factory that assembles train coaches. The coach remains stationary, and workers and machines move around it as it is assembled. Which of the following layouts is used at Jorah's workplace?
Answer:
fixed-position layout
Explanation:
Based on the information provided within the question it can be said that the layout that is being used at Jorah's workplace is a fixed-position layout. This type of layout refers to the project/product staying in a fixed position and the workers go to the product site in order to build it. Which is what Jorah does by going to the factory where the train coaches are assembled.
Jorah's workplace uses a fixed-position layout, where the train coach stays in place while workers and machines move around it. This is suited for large or heavy products. Examples include airplane assembly and shipbuilding.
Jorah's workplace uses a fixed-position layout, where the product (in this case, the train coach) remains stationary, and workers along with machines move to the product to complete assembly tasks. This contrasts with an assembly line, where the product moves along a conveyor belt to various stations for different tasks to be performed.
This type of layout is often used for large, heavy products that are difficult to move.
Aeroplane assemblyShipbuildingConstruction projectsIn the fixed-position layout, the product stays in one place due to its size/weight or the nature of the assembly process.
The income statement for Delta-tec Inc. for the year ended December 31, Year 2, was as follows:
Income from operations $299,700
Gain on sale of investments 17,800
Unrealized loss on trading investments (72,500)
Net income $245,000
The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $825,000. During Year 2, the company purchased trading investments for the first time at a cost of $346,000. In addition, trading investments with a cost of $66,000 were sold at a gain during Year 2. The company paid $65,000 in dividends during Year 2.
a. Determine the December 31, Year 2, Retained Earnings balance.
b. Provide the December 31, Year 2, balance sheet disclosure for Trading Investments
Answer and Explanation:
a.
Retain earnings, year 2
= retained earnings year 1 + earning for year 2
= $825,000 + ($245,000 - $65,000)
= $825,000 + $180,000
= $1,005,000
Therefore, The December 31, Year 2, Retained Earnings balance is $1,005,000.
b.
trading inverstments are classified under current assets. the closing balance of trading inverstments is:
trading inverstments purchased at cost in year 2 $346,000
trading inverstments sold at cost in year 2 $66,000
balance of trading inverstments at cost $280,000
The balance sheet is present like:
D-Tec Inc
balance sheet
particulars amount($)
current asstes
trading inverstments(at cost) 280,000
valuation allowance for trading inverstment (72,500)
trading inverstments(at fair value) 207,500
The Retained Earnings of Delta-tec Inc. as of December 31, Year 2, is $1,005,000. The balance sheet disclosure for Trading Investments on December 31, Year 2, would show an ending balance of $280,000.
To determine the Retained Earnings balance of Delta-tec Inc. as of December 31, Year 2, we begin by starting with the Retained Earnings balance from the previous year. To this, we add the net income for the current year and subtract any dividends paid. The calculation is as follows:
Retained Earnings (Beginning balance) = $825,000
Net Income (for Year 2) = $245,000
Dividends Paid (during Year 2) = $65,000
Retained Earnings (End balance) = $825,000 + $245,000 - $65,000
Retained Earnings (End balance) = $1,005,000
For the balance sheet disclosure of Trading Investments on December 31, Year 2, we must account for the cost of purchases and subtract any sales. The company had purchased trading investments costing $346,000 and sold investments with a cost of $66,000, which resulted in a gain (included in net income). Hence:
Trading Investments (Purchased) = $346,000
Less: Investments Sold = $66,000
Trading Investments (Ending balance) = $346,000 - $66,000
Trading Investments (Ending balance) = $280,000
Ace Refinery desired a workplace free from all forms of sexual harassment. Accordingly, Ace developed guidelines for its workers that specifically forbade sexual harassment. The guidelines gave examples of conduct that would not be tolerated, provided penalties, designated a company official as the proper person to whom complaints should be brought, investigated complaints thoroughly, and maintained an educational policy designed to remind employees of the policy. Maxine, an Ace Refinery employee, made a complaint of sexual harassment, charging that her supervisor had demanded sexual favors. An investigation was performed and the charge was substantiated. The supervisor was warned not to continue this conduct, but it happened again. The supervisor was again issued a warning. Finally, Maxine brought a court action against the supervisor and Ace. Will Maxine win?
a. Yes, the company should have reassigned Maxine to a different department.b. No, she will not win because Maxine should have changed jobs.c. No, she will not win because Ace did all in their power to stop the harassment.d. Yes, the company failed to appropriately discipline the supervisor
Answer:
The answer is Letter D.
Explanation:
Yes, the company failed to appropriately discipline the supervisor. Because sexual harassement in a workplace is a form of discrimination that affects the dignity of women and men. The company is responsible for maintain a health and secure work environment for all the employees, in this case the company didn't provide that.
The company was lenient, and that is the reason why Maxine needed to file a court action against the supervisor and Ace.
Suppose workers and employers agree to a three-year wage contract under the expectation of 3% inflation, but inflation turns out to be 1%. In this case, ________ lost purchasing power, and ________ gained purchasing power.
A. employers; workers
B. workers; employers
C. employers; no one
D. no one; employers
Answer:
The correct answer is A. employers; workers.
Explanation:
The purchasing power is determined by the goods and services that can be purchased with a specific sum of money, given the prices of these goods and services. Thus, the greater the amount of goods and services that can be acquired with a certain sum of money, the greater the purchasing power of that currency. Therefore, the measurement of purchasing power is directly related to the consumer price index and can be used to compare the wealth of an average individual for a period prior to the present or in different countries at the same time.
In this case, employers lose because there was a 3% increase per year, while average prices increased by 1%, so the employer's purchasing power declined. At the same time, workers saw their purchasing power increase as their nominal income increased more than average prices
Wilvade Inc. has modified the work timings for its employees. The employees of the company believe that the new timings are inconvenient and voice their concerns to the management. The management tries to understand the perspective of the employees and is willing to address their issues. In this scenario, the management of Wilvade Inc. is most likely using _____.
a. empathetic listening
b. respondent conditioning
c. incongruent communication
d. reactive communication
Answer:
a. empathetic listening
Explanation:
Empathetic listening is trying to understand the point the other person is trying to make and connect with him/her. An important characteristic is to listen to the other person without judging to be open to what is being said and really understand. So, the management of Wilvade Inc. is most likely using empathetic listening because they are trying to understand the employees concers and they want to address the situation.
According to the Economic Model of CSR, the pursuit of profit will continuously work towards the optimal satisfaction of consumer demand which, in the interpretation of _____ is the optimal social good.
Answer:
utilitarianism
Explanation:
Based on the information provided within the question it can be said that the term that is being mentioned for interpretation is utilitarianism. This term refers to a theory that believes that the best approach is the one who's outcome will bring the most good to the most people. Which According to the Economic Model of CSR, it is pushing towards achieving the most satisfaction of it's consumers when pursuing profits.
On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,800 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019. Taylor should recognize revenue in 2018 in the amount ofa.$0b.$800c.$2,400d.$4,800
Answer:
option (b) $800
Explanation:
Data provided in the question:
Amount to be received = $4,800
Duration = 1 year
Date on which the contract was signed = November 1, 2018
Now,
For the year 2018, the number of months left are 2
therefore,
Revenue to be recognized in 2018
= [Amount to be received ÷ Duration in months ] × Months left in 2018
= [ $4,800 ÷ 12 ] × 2
= $800
Hence,
The correct answer is option (b) $800
Elyse broke up with her boyfriend after a fight. She has spent the last week repeatedly going over the fight in her mind, which has caused her to sink into depression. Her continual reliving the fight is known as:
A.reminiscence.
B.fixation.
C.obsession.
D.rumination.
Answer:
The correct answer is ( D)
Explanation:
Elyse is suffering from rumination, it is one of the likenesses among anxiety and depression. Ruminating is essentially cyclically going over an idea or an issue without completion. At the point when individuals are discouraged, the topics of rumination are commonly about being poor or useless. The idleness and the sentiments of deficiency raise uneasiness, and tension intervenes with taking care of the issue.
If 206 people in a sample of 560 people say that they "liked a product" that they purchased during a test market study in Cincinnati, the proportion of people in this study who said that they liked this product was about _____.a.0.40b.0.37c.0.56d.2.71
Answer:
b.0.37
Explanation:
Given
Number of people sampled = 560
Number of people that "liked a product" = 206
Proportion of people in this study who said that they liked this product
= Number of people that "liked a product"/ Number of people sampled
= 206/560
= 0.3679
= 0.37 (to 2 decimal places)
The development group in a company's IS department is staffed primarily by programmers, test engineers, technical writers, and other development personnel. Based on this information, which of the following is most likely to be trueA) The company develops programs in-house.
B) The company uses licensed software.
C) The company has negotiated outsourcing agreements with other companies.
D) The company contracts work to other companies.
Answer:
A) The company develops programs in-house.
Explanation:
Many companies prefer to develop the resources it wants if it is possible. In cases when companies desire so, it has its own research and development team.
When the company has its own personnel for the development of programs, that is consisting test engineers, technical writers, and many other required development personnel, will specify for the company's own programs development.
The company has its own inbuilt capacity to develop the programs in house.
Gruber Corp. pays a constant $8.75 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. The required return on this stock is 12 percent. What is the current share price?
Final answer:
To find the current share price for Gruber Corp, we use the present value of an annuity formula, considering a $8.75 constant dividend over 10 years and a 12% required return.
Explanation:
To calculate the current share price of Gruber Corp stock when it pays a constant dividend for the next 10 years with no dividends afterwards, we need to use the present value of an annuity formula. Since the required return on the stock is 12 percent, we can discount the dividend of $8.75 for each of the next 10 years back to its present value.
The formula for the present value of an annuity is PV = D * ((1 - [tex](1 + r)^{-t}[/tex]) / r), where PV is the present value, D is the yearly dividend, r is the required rate of return, and t is the number of years. For Gruber Corp, D is $8.75, r is 0.12, and t is 10.
Using the formula, PV = $8.75 * ((1 - [tex](1 + 0.12)^{-10}[/tex]) / 0.12). This calculation will give the present value of all dividends over the next 10 years, which is equal to the stock's current price, since no dividends are paid after this period.
When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of product diversity. True or False?
Answer:
True
Explanation:
When a firm has international operations it should choose the most appropriate structure based on the following factors:
extent of international expansion: into how many international regions do we plan to expand our activities. the type of strategy: the have to choose between global, multidomestic or international strategythe degree of product diversity: on how many additional markets will our products compete? regionally or globallyAlthough 1 and 3 may be similar, there can be significant differences. For example, a US company may want to start selling their products in all of South America (regional product diversity), but it will do it by setting a South American office in Brazil only (international expansion is limited to Brazil only).
Final answer:
The statement is true; the most appropriate structure for a firm with international operations is affected by the scale of international expansion, strategy type, and product diversity, alongside other factors such as FDI, production efficiency, and scale economies.
Explanation:
True, when a firm has international operations, the choice of the most appropriate organizational structure is influenced by several key factors: the extent of international expansion, the type of strategy employed, and the degree of product diversity. The complexity of operating across national boundaries requires firms to consider the legal, cultural, and economic environments they are entering. Factors such as foreign direct investment, the need for efficiency in production, and the advantages of scale economies also play critical roles in determining the structure that will best support a firm's international goals.
As Transnational Corporations (TNCs), companies must coordinate a wide array of production networks and adapt to geographical flexibility in sales. This becomes more critical as they enter different markets with varying production and cost conditions. A company's market structure and competitive industry environment are important considerations that influence how businesses adapt to global trade, integrate vertically, and optimize their cost structures through factors like outsourcing and economies of scale. Furthermore, the potential environmental and political impacts of their international operations can affect strategic decisions involving structure and expansion.
Obie is trying to make an online purchase, but he doesn't have his credit card. He calls his wife, who reads the 16-digit credit card number to him. Unfortunately, Obie cannot remember the number long enough to type it into the computer. This is because:______________.
Answer:
Short-term memory is limited in duration and capacity.
Explanation:
Since short memory is restricted in both limit and length, the maintenance of remembrances requires moving the data from short-term in to long term memory. Practice can likewise assist data with making it into long-term memory. A human capacity is to remember things for a short period of time. Which explains why, Obie forgot the 16 digit code which was just read by her wife.
Adam strongly believes that his employees have a positive attitude toward their work. He sees in them a potential to take risks and a greater capacity for imagination and creativity if motivated by rewards. In this scenario, Adam's views about his employees are consistent with the assumptions of ______.
A. equity theory
B. Theory Y
C. Theory X
D. hierarchy of needs theory
Answer:
B. Theory Y
Explanation:
According to theory Y assumptions, employees are self-motivated and ambitious. They can exercise greater control and are willing to accept new responsibilities. Theory Y supposes that employees love to work, and that they find motivation in the completed jobs.
Managers who subscribe to theory Y believe that employees are intelligent, innovate and creative people whose input can help solve organizational problems. Theory Y suggests that if employees are given more freedom in the workplace, they are likely to perform their best, which increases productivity in the workplace.
Theory Y managers hold optimistic and positive views on their employees. They encourage a collaborative approach to management, where there is a greater relationship between managers and their subordinates.
An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3. The per-unit cost of production in this economy is _____.
a. $0.10.
b. $0.50.
c. $1.00.
d. $0.05.
Answer: $0.1
Explanation:
Per unit cost of production = Total cost of factors of production / total quantity
Total cost of Labour = $3 × 8 = $24
Total cost of capital = $10 × 2 = $20
Total cost of raw materials = $4 × 5 = $20
Total cost of factors of production = $24 +$20 + $20 = $64
$64 / 640 = $0.1
State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.The state tax plan outlined above assumes thatA) federal tax officials will not attempt to collect back taxes in the same mannerB) stiff fines are not the only way to collect past due corporate taxesC) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers areD) past due taxes cannot be collected without a reduction in penaltiesE) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals
Answer:
B) stiff fines are not the only way to collect past due corporate taxes
Explanation:
Collecting taxes is not an easy or inexpensive job. The IRS spends billions of dollars in order to collect taxes and the same applies to state taxing entities (at a smaller proportion).
So if state tax official can find a way to collect past due taxes then it should always be a good idea. Everyone loves a discount and corporations probably love discounts more. If the reduction or elimination of fines will make corporations pay their state taxes, then it's a great idea.
It's always better to collect $100 in taxes than to have $200 in past due taxes that aren't collected.
A monopolist maximizes profits by:
a) by charging price equal to average cost.
b) charging price equal to marginal cost.
c) by setting MR(q)=MC(q) at a q for which p(q) is at least AVC(q).
d) by setting marginal profit equal to marginal cost.
e) by setting marginal revenue equal to marginal profit at a q for which p(q) is at least AVC(q).
Answer:
c) by setting MR(q)=MC(q) at a q for which p(q) is at least AVC(q)
Explanation:
Profit is maximised at MR= MC and price is greater than MC for monopoly.
A monopolist maximizes profits by setting marginal revenue equal to marginal cost for a quantity where price is at least the average variable cost, as determined by the market demand curve.
Explanation:A monopolist maximizes profits by selecting the profit-maximizing level of output where marginal revenue (MR) equals marginal cost (MC), and then charging the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits. The correct answer from the options provided is c) by setting MR(q)=MC(q) at a q for which p(q) is at least AVC(q). This is because the monopolist will maximize profits by producing at the level where MR equals MC, then setting a price based on the market demand that covers at least the average variable cost (AVC).
Learn more about Profit Maximization in Monopoly here:https://brainly.com/question/28586793
#SPJ6
Macrophages are cells that play a role in the response of the immune system of mice and other mammals to invasive organisms such as bacteria. Unlike other mice, mice that are genetically incapable of making these particular cells do not show elevated levels of nitrates when infected with bacteria.
The statements above, if true, provide the most support for which of the following conclusions?
(A) Mice that are unable either to make macrophages or to make them in sufficient numbers will protect themselves from bacterial infections in some other way.
(B) Mice that show elevated levels of nitrates can easily fight off most types of bacterial infections.
(C) In mice, macrophages play a role in the production of nitrates or inhibit a process by which nitrates are broken down or otherwise eliminated.
(D) When a healthy mouse becomes infected with an invasive organism, the number of macrophages in the mouse’s body decreases.
(E) Injections of nitrates into mice that lack macrophages will not enhance the ability of these animals’ immune systems to fight off infection.
Answer:
(C) In mice, macrophages play a role in the production of nitrates or inhibit a process by which nitrates are broken down or otherwise eliminated.
Which of the following is not a typical adjustment made to the income statement for projection purposes?
a. Adjusting net income for perceived under- or over-accruals.
b. Adjusting revenues to only include organic revenue growth.
c. Separating operating and non-operating items.
d. Removing transitory items such as restructuring charges.
e. None of the above.
Answer:
The correct answer is b. Adjusting revenues to only include organic revenue growth.
Explanation:
One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.
The applications that can be had among others are the following:
Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.
Another application will be to know the external financing needs for the period you want to know.
The most common and practical method of projecting financial statements is based on sales.
A company resells 10,000 shares of treasury stock for $22 per share. The stock was purchased in a previous year for $18 per share. By how much would net income be affected by the sale of this treasury stock?
Answer:
$0, income statement s not affected.
Explanation:
The purchase and resale of treasury stock does not affect the income statement. When a company's treasury stock is resold, additional paid-in capital increases (if the stock were sold at a price above cost) or decreases (if the stock were sold at a price below cost).
A bank reconciliation should be prepared a. to explain any difference between the company's balance per books with the balance per bank b. by the company's bank c. by the person who is authorized to sign checks d. whenever the bank refuses to lend the company money
Answer:
a.
Explanation:
A bank reconciliation refers to the balancing the company's accounting records (the books) in regards to the cash accounts of that company, with the information from the bank statements that they have. Based on this information, it can be said that A bank reconciliation should be prepared to explain any difference between the depositor's balance per books with the balance per bank. Otherwise these inconsistencies may be considered as fraud.
A bank reconciliation should be prepared to explain any difference between the company's balance per books with the balance per bank.
Explanation:A bank reconciliation should be prepared to explain any difference between the company's balance per books with the balance per bank. The purpose of a bank reconciliation is to ensure that the company's records match the bank's records, taking into account any discrepancies such as outstanding checks or deposits in transit. This process helps to identify errors or fraudulent activity and ensures the accuracy of financial records. Bank reconciliations are typically prepared by the company's accounting or finance department.
Learn more about bank reconciliation here:https://brainly.com/question/34178861
#SPJ6
When JP saw Helene in the stockroom stuffing her purse with expensive printer cartridges, Helene was quick to say, "We've been friends since first grade, so I'm sure you won't say anything about this." What was Helene using on JP?
A. pressure tactic
B. coalition tactic
C. personal appeal
D. legitimating tactic
E. exchange tactic
Answer:
C. personal appeal
Explanation:
Helene was using a classic personal appeal tactic when pleading JP no to tell on her. She relied on friendship and a personal relationship between them, which is what personal appeal is all about.
It is one of the influence tactics. If this was a pressure tactic, Helene would probably threat JP, which she didn't do in the example.
If it was a coalition tactic, Helene would try to get JP to help her persuade someone else, which is a non-existent aspect here.
Legitimating tactics, on the other hand, base on the authority gained by an individual's organizational position or some established policies.
Exchange tactics always imply some returned favors.
A main reason why the standard of living improved in the united states was the
Answer:
increased production of goods
Explanation:
A main reason why the standard of living improved in the united states was the increased production of goods
Across1) In economics, this is a rivalry that may refer to rivalry among firms, or individuals, or the race to control resources. 2) These are the legal restrictions set forth by a government to produce desired outcomes.
Answer:
1. Competition
2. Regulation
Explanation:
In economics, competition refers to the situation where different firm tries to take control or obtain a share of a limited good by making changes in price, place, product, or promotion.
Competition arises out of scarcity. Every seller is trying to obtain what other sellers want such as, sales, profits, market share.
Regulations can be defined as the restrictions that are imposed by the government to get the desired outputs. These restrictions can be imposed on price or production or wages, for instance, price ceilings, minimum wages, etc.
According to leading progressive, David C. Korten:A. power on earth was being transferred from national governments to transnational corporations which by their nature serve only the short-term interests of citizens.B. "a few hundred" multinational corporations are making daily business decisions which have more impact than those of most sovereign governments.C. developing nations should set up a stable and enabling regulatory environment that indulges the "concern of the business sector for national policies that are enabling but not overly regulating."D. in seeking return on capital invested, MNCs may build or buy facilities, contract with local suppliers, and hire workers.A. power on earth was being transferred from national governments to transnational corporations which by their nature serve only the short-term interests of citizens.
Answer:
A) power on earth was being transferred from national governments to transnational corporations which by their nature serve only the short-term interests of citizens.
Explanation:
A lot of people believe that multinational corporations are so powerful now that they can control governments, and not only governments from small poor nations, but the US government itself. This is a major belief in all the conspiracy theories about who rules the world. But the fact that many people believe in it doesn't make it true, or hopefully is not true.
Although some actions taken by the government specially in certain industries like the oil industry are a clear indication that maybe multinationals don't own the government completely but they are least able to rent the government for a while. When wars are fought in order to favor certain companies, like both invasions on Iraq, then this idea gains momentum.
If a librarian were to direct you to a source’s alphanumeric tag on a library shelf, what term is she implicitly referencing for that source?
Answer:
The correct answer is: call number.
Explanation:
Materials in a library are arranged on the basis of their subjects. This method of organization is called classification.
The alphanumeric tag on a library shelf is known as the call number. This number is either marked on the spine of the book or in the library catalog. It refers to the location of the book.
It is like a unique identification code for each book in the library. The call number is a mix of letters and numbers and generally begins with alphabets.
Federal budget deficits generally grow during recessions because
Answer:
Because the social expenditure increases
Explanation:
When the economy is in recession, the government revenue brought by taxes decreases. But the demand for welfare, social expenditure increases dramatically (education, health, etc.). Since a Recession is a sign of a stagnant economy.
If the Federal Budget has already been facing a deficit then, generally, this situation will increase its debts.