Answer: Fall; rise foreign demand for domestic currency.
Explanation:
The exchange rate must be fall to create a domestic currency surplus in an economy. For example:
Suppose, the ongoing exchange rate of India is $1 = Rs.70
So, if a person wants to buy a good worth of $2, then he have to pay Rs.140 for this good. When the exchange rate falls to $1 = Rs.60, now he have to pay only Rs.120 for this good. Hence, domestic currency surplus of Rs.20 created in an economy.
To maintain this level of fixed exchange rate, which created a domestic currency surplus, so government must increase the foreign demand for their domestic currency, to wipe out all the created domestic currency surplus in this economy.
The Loyola Widget company sells 5,000 units in a given year. Total industry sales of widgets for that year are 100,000 units. The ratio of the company's sales to total industry sales is referred to as:
Answer:
Market share
Explanation:
For computing the ratio between company sales and the total industry sale we use the market share.
The market share is that share through which the company can hold it by some percentage. We have the calculation also for better understanding
By using the formula, the computation is shown below:
= Company sales units ÷ total industry sales
= 5,000 units ÷ 100,000 units
= 0.05 or 5%
So by 5%, the Loyola widget company controls the total industry sales.
A recent New York Times article about Bernard Madoff and his illegal Ponzi scheme stated, "When money goes global, fraud does too." Although the goal of investors who trusted Madoff's investment company was to earn the highest return possible on their investments, they turned a blind-eye toward the fact that some of those returns were too good to be true. Individual investors, companies, and even charities lost large sums of money by investing with Madoff's company. Which of the following statements relates to this story?
A. The unethical behavior of one company had a worldwide ripple effect that can impact the well being of an economy.
B. Too much regulation caused the capitalistic nature of Mr. Madoff's business model to fail.
C. People lost money because of the fluctuations in world trading currencies, questioning the legitimacy of trading abroad.
D. Investors did not sign contracts with Mr. Madoff's company. The government can only protect individuals and companies who sign enforceable contracts.
Answer:
The answer is A) The unethical behavior of one company had a worldwide ripple effect that can impact the well being of an economy.
Explanation:
Bernard (Bernie) Madoff was a very respectable business man, market guru, top investor on Wall Street, president of Nasdaq, etc. With such a resume it was easy for him to attract billions of dollars from around the world into his Ponzi scheme fraud. He committed the largest fraud in history, over 64,800 millions of US dollars.
He would offer well above average returns to investors and greed made his clients fall into his trap. This whole fraud was so big it affected many people around the world.
Watson and Raymond Inc., a courier company based in the United States,suffered a loss recently when a cyclone struck its headquarters and damaged a lot of data stored on the company’s servers. In this scenario, Watson and Raymond’s business was affected by its _____. a. external environment b. physical work environment c. internal environment d. human resource environment
Answer:
option (a) External environment
Explanation:
The correct answer for the given blank is option (a) " external environment ".
The reason for the external environment is that, it is mentioned in the question that the loss occurred due to the cyclone and the cyclone is the cause of the external environment i.e not involving any effort from the human or the persons working in the organisation.
Many companies monitor their employees' internet use and email. Why might they be doing this?
a) because they like to spy
b) to reduce shirking
c) to gain inside information on new consumer trends
d) in order to improve morale
Answer:
b) to reduce shirking
Explanation:
In this model, shirking is defined as a lack of employee work effort. An employee's tendency to give less than full effort represents shirking, with greater deviations from 100 percent effort representing greater levels of. shirking.
The term "current financial resources" refers to: Multiple Choice Those assets that can quickly be converted into cash. Assets that are available to be used for current expenditures. The government's current assets and current liabilities. The current value of all net assets owned by the governmental unit. Financial resources used to provide electricity to local citizens.
Answer:
Assets that are available to be used for current expenditures.
Explanation:
Current financial resources, means those assets which can fulfill the current needs of a government, when we talk about such resources we only consider the assets available.
As in the chosen option, all the assets available for current expenditure that is assets available to meet current expenses of the government, that is current need, here by current we mean the need which will occur in few days,
We necessarily do not mean no capital expenditure, it is just about the timings of expenditure.
Therefore, Correct option is
Assets that are available to be used for current expenditures.
The correct option is "The current value of all net assets owned by the governmental unit.", as the term "current financial resources" refers to assets available for current expenditures of a governmental unit. This includes assets like cash and receivables, which can be utilized within a year. The focus is on maintaining transparency and meeting short-term financial obligations.
The term "current financial resources" refers to assets that are available to be used for current expenditures.
This means the resources that a governmental unit can use within a short period, typically within one year, to meet its financial obligations and operating expenditures. Examples include cash, receivables, and other assets that can be easily converted to cash or are expected to be used up in the short term.Governmental funds use a modified accrual basis of accounting, focusing on these expendable financial resources to meet current financial needs.This ensures transparency to taxpayers regarding how their government manages its financial responsibilities within the short term.Examples of Current Financial Resources:
Cash and cash equivalentsInvestments maturing within one yearAccounts receivables due within one yearPrepaid expenses expected to be used within one yearState as either a positive or normative statement. An op-ed piece in a newspaper urging the adoption of a particular economic policy would be considered a _________________statement. A research study on the effects of soft drink consumption on children’s cognitive development would be considered a _________________statement.
Answer:
The correct answers are: Normative; Positive.
Explanation:
The positive economy is based on specifying and demonstrating what is happening in the economy, responds to economic issues from reason and with an objective point by which things happen, focuses on determining everything that could affect it and the results that will be obtained by final.
No advice is given to remedy economic problems, rather, it describes the problems that affect the economy without mentioning whether the results will be positive or negative.
If a family spends its entire budget in a given time frame, the family can afford either 15 movie nights or 8 restaurant meals. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one movie night?
Answer:
The correct answer is 0.533 restaurant meals.
Explanation:
The two goods consumed by the family mentioned here are movie nights and restaurant meals.
The family can afford either 15 movie nights or 8 restaurant meals out of their total budget.
The opportunity cost of 15 movie nights = 8 restaurant meals
The opportunity cost of 1 movie night
= [tex]\frac{8}{15}[/tex]
= 0.533 restaurant meals
Final answer:
The opportunity cost of one movie night is approximately 0.53 restaurant meals. This is determined by dividing the total number of restaurant meals by the number of movie nights, illustrating the trade-offs between the two choices based on the budget constraint.
Explanation:
The opportunity cost of one movie night is the amount of restaurant meals forgone in order to attend one movie night. If a family can afford either 15 movie nights or 8 restaurant meals with their entire budget, we can calculate the opportunity cost by establishing a ratio. This calculation can help one understand the trade-offs and make more informed decisions on consumption.
To calculate the opportunity cost of one movie night, we use the following steps:
Find the ratio of restaurant meals to movie nights by dividing the number of restaurant meals by the number of movie nights, which is 8 restaurant meals / 15 movie nights.Simplify the ratio to find out how many restaurant meals you must give up for one movie night, which results in 0.53 restaurant meals per one movie night.Therefore, the opportunity cost of one movie night is approximately 0.53 restaurant meals. This indicates that for every movie night the family chooses to enjoy, they give up the opportunity to have slightly more than half of a restaurant meal. Understanding the opportunity cost helps the family make choices that align with their preferences and budget constraints.
When a company pays $2,800 dividends to its stockholders, the transaction should be recorded as:
Debit dividends; credit accounts payable.
Debit retained earnings; credit dividends.
Debit cash; credit dividends.
Debit dividends; credit cash.
Answer:
The correct answer is Debit dividends; credit cash.
Explanation:
First seat :Earnings Accrued (- Net Equity)
to various creditors (+ Liabilities)
Since the minutes of the assembly must indicate that they are taken from the profits of previous years, the accumulated profits are reduced.
Second seat
Miscellaneous creditors (- Liabilities)
to Banks (- Active)
The first entry represents transfer from one liability to another liability. Although we think that capital accounts are not liabilities, it is not true, given that the value of debt to shareholders of the value of your company, so we can group everything in the same bag.
When decreeing dividends, what is done is to cover a small part of that company value. That is, when dividends are decreed, they become part of a formalized liability.
The second entry is the cancellation of the liability, through one of the ways to extinguish the obligations: payment.
Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a ____.A)Rational, efficient, cost-cutting tool based on principles of behaviorismB)Sales-generating toolC)Rational, efficient method of increasing diversityD)Rational, efficient, ideal organization based on principles of logicE)Rational, cost-cutting, efficient organization based on principles of synergy
Answer:
The answer is: D) Rational, efficient, ideal organization based on the principles of logic.
Explanation:
Weber believed that bureaucracy was the most efficient and logical way to set up an organizational structure. He based his theory of bureaucracy on six principles:
Task specialization; every employee is responsible do to the task he is best at.Hierarchical authority; management is organized in layers where a manager is responsible for his staff and their performance.Formal selection of employees based on technical skills and competences.Rules and requirements that insure uniformity, so everyone knows what to do.Impersonal relationships; regulations and clear requirements create impersonal relationships between employees.Career orientation; employees build a career within the organization.Max Weber considered bureaucracy a rational, efficient, ideal organization based on logic, which is option D.
Max Weber, the influential early-twentieth-century sociologist, viewed bureaucracy as a rational, efficient, ideal organization rooted in principles of logic.
Key features include a clear hierarchy, division of labor, written rules, and impersonal policies. These characteristics create an efficient and effective management system.
He believed that the increasing complexity of modern society necessitated a structured, hierarchical system governed by formal rules and impersonal relationships.
Key characteristics of Weber's bureaucratic model include a clear division of labor, a hierarchy of authority, adherence to written rules, and impersonal decision-making processes, all aimed at maximizing efficiency and effectiveness in organizational management.
Therefore, the correct answer is option D that is "Rational, efficient, ideal organization based on principles of logic"
When money is used as a means of settling debts maturing in the future, it is serving as a A. store of value. B. standard of deferred payment. C. medium of exchange. D. unit of accounting.
Answer:
A would be the correct answer du
Explanation:
Opportunity cost is defined as
A. the highest-valued, next-best alternative that must be given up to obtain something.
B. the variety of uses that a society has for all factors of production.
C. the monetary cost of making a choice under conditions of scarcity.
D. the collection of all alternative goods that could be chosen at any point in time.
Answer:
The correct answer is A. the highest-valued, next-best alternative that must be given up to obtain something.
Explanation:
The opportunity cost is the cost of the alternative that we waive when we make a certain decision, including the benefits that we could have obtained from having chosen the alternative option.
Therefore, the opportunity cost is those resources that we no longer receive or that represent a cost due to the fact that we have not chosen the best possible alternative, when we have limited resources (usually money and time). The term opportunity cost is also referred to as "the value of the best option not selected."
Cost of opportunity In our life we have to constantly make decisions for any matter, especially if they are related to money. For example, imagine that we have 10 euros and we have several alternatives to spend them (go to the movies, take a walk in the park and save them, dine out ...), the opportunity cost is going to be the benefit that the alternative to that we have given up, fundamentally the one with the highest value.
Final answer:
Opportunity cost is the highest-valued, next-best alternative that must be given up to obtain something.
Explanation:
Opportunity cost is defined as the highest-valued, next-best alternative that must be given up to obtain something. It is the value of the best opportunity forgone in a particular choice. For example, if you choose to go to the movies instead of volunteering at a soup kitchen, the opportunity cost is the value of the satisfaction and impact you could have had by helping others.
So opportunity costs reflect the trade-offs inherent in decision-making due to scarcity. It's personalized as different individuals value alternatives differently, involving more than merely monetary expenses.
Consider the following statement: "The problem with economics is that it assumes that consumers and firms always make the correct decisions. But we know that everyone makes mistakes." What is the most correct response to this statement?a) Economics has a lot of problems such as those that caused the Great Recession.b) Economics assumes that consumers and firms are rational, not that they always make the right decisions.c) Economics is a proven field of study, and it has already solved this problem.d) Economics does assume that consumers and firms always make the correct decisions.
Answer:
The correct answer is b) Economics assumes that consumers and firms are rational, not that they always make the right decisions
Explanation:
The economy assumes that consumers and businesses operate in a unique and particular way, there are economic models that support circumstances under the term "perfect competition"; From a rational point of view, he believes that consumers act in a certain way, but some decisions are taken from an emotional perspective and leave rational analysis aside.
For example: For the economy, a vehicle has a limited period of use, when this period ends, the economy tells us that the consumer must purchase a new vehicle. But with an emotional perspective, there is a sentimental value on the part of the owner towards the vehicle, when the period of use has concluded, the owner prefers to repair the vehicle rather than buying a new one, no matters if it is more expensive and difficult than buying a new one.
So for the economy, the consumer of the last example, take the right decision?
On May 1, a two-year insurance policy was purchased for $9,600 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?
Answer:
amount of insurance expense = $3200
Explanation:
given data
policy purchased = $9,600
to find out
What is the amount of insurance expense that would appear on the company's income
solution
we know insurance purchased on 1 may at $9600
and at statement 31st December is
time is may to December is = 8 month
so for 2 year insurance = 24 months
so
amount of insurance expense = [tex]\frac{9600}{24} 8[/tex]
amount of insurance expense = 400 × 8
amount of insurance expense = $3200
Final answer:
The amount of insurance expense that would appear on the company's income statement for the first year ended December 31st is $3,200. This was determined by prorating the $9,600 premium over 24 months and calculating the expense for the 8 months of coverage in the first year.
Explanation:
The question revolves around how to calculate the insurance expense to be reported on the company's income statement for the first year when a two-year insurance policy begins on May 1st. To determine this, you need to compute the portion of the $9,600 premium that applies to the first year of coverage, which involves pro-rating the premium over the coverage period.
The policy covers 24 months beginning May 1st. From May 1st to December 31st, there are 8 months of coverage in the first year. The monthly insurance cost can be calculated as $9,600 divided by 24 months, which equals $400 per month. Therefore, the insurance expense for the first year is 8 months times $400 per month, equating to $3,200.
This amount, $3,200, is the insurance expense that will appear on the company's income statement for the first year ended December 31st.
A bond with a $1,000 par value sells for $895. The coupon rate is 7%, the bonds mature in 20 years, and coupon interest is paid semi-annually. The tax rate is 35%. What is the aftertax cost of this debt?
Answer:
After tax cost of debt is 5.239%
Explanation:
Given:
Face value = $1,000
Bond price = $895
Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)
Maturity = 20×2 = 40 periods
Using bond price formula:
Bond price = Present value of face value + present value of coupon payments
Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.
substituting the values:
=RATE(40,35,-895,1000)
we get Pre-Tax cost of debt = 4.03% semi- annual
Annual rate is 4.03%×2 = 8.06%
Note: PV is negative as bond price is cash outflow.
After tax cost of debt = 8.06(1 - 0.35)
= 5.239%
At the time the transaction occurred, which of the following would result in an increase in net income under the accrual basis of accounting, but would not result in an increase in net income under cash basis accounting?
a. performance of services on account
b. receipt of cash for services that were performed earlier on account
c. use of supplies purchased earlier
d. purchase of supplies for cash
Answer: Performance of services on account
Explanation: Under the accrual basis of accounting the revenue from an activity is recorded when it is earned, that is, when the activity is completed. On the other hand, in cash basis of accounting the entry is recorded when cash is received.
So when the services are performed on account then the debtor will arise and the revenue is recorded if he organisation is following accrual basis.
On the other hand nothing will be recorded under cash basis since the cash is not received yet for the services performed.
Option a, 'performance of services on account' will increase net income under accrual basis accounting but not under cash basis accounting since the revenue is recognized when it is earned in the former method, irrespective of when the cash is received.
Explanation:The correct answer is a. performance of services on account. The accrual basis and cash basis are two different methods of accounting. With the accrual basis of accounting, revenues are recognized when they are earned (not necessarily when cash is received) and expenses are recognized when they are incurred (not necessarily when cash is paid out). Therefore, the performance of services on account can increase net income under the accrual basis of accounting because it has been earned, regardless of whether cash has been received or not. On the contrary, under a cash basis of accounting, revenues are only counted when cash is actually received and expenses are only counted when they are actually paid. Therefore, the performance of services on account would not increase net income under this method since no cash has been received.
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Management of Childers Corporation is considering whether to purchase a new model 380 machine costing $278,000 or a new model 230 machine costing $207,000 to replace a machine that was purchased 3 years ago for $266,000. The old machine was used to make product R16K until it broke down last week. Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model 230 machine. It has less capacity than the new model 380 machine, but its capacity is sufficient to continue making product R16K.
Management also considered, but rejected, the alternative of simply dropping product R16K. If that were done, instead of investing $207,000 in the new machine, the money could be invested in a project that would return a total of $305,000.
In making the decision to buy the model 230 machine rather than the model 380 machine, the differential cost was:
Answer:
The differential cost is the purchase price.
Explanation:
Giving the following information:
Model 380
Purchase price= 278,000
Model 230
Purchase price= 207,00
Management has decided to buy the new model 230 machine. It has less capacity than the new model 380 machine, but its capacity is sufficient to continue making product R16K.
In this case, we only have information regarding the purchase price. The differential cost is the purchase price. Other differential costs (if given more information) would be fixed costs, variable costs, production per hour, maintenance, etc.
Intangible assets ______.
A. convey special rights from patents, copyrights, trademarks, and other creative works
B. represent assets for which the market value cannot be determined
C. are not recorded in the books because they have no physical substance
D. All of the statements are correct.
Final answer:
Intangible assets do convey special rights and are recorded in the company's financial statements, despite having no physical form. They include intellectual property like patents and copyrights which protect exclusive rights for a limited time.
Explanation:
Intangible assets convey special rights from patents, copyrights, trademarks, and other creative works. They represent assets for which the market value can be difficult to determine, and contrary to one of the options, they are often recorded in the books even though they have no physical substance. This is because these assets have economic value through the exclusive rights and potential revenue streams they provide. Intellectual property is a key category of intangible assets, and it includes patents which may grant an exclusive legal right to make, use, or sell an invention, typically for a period of up to 20 years. Copyrights offer protection for literary and artistic works for potentially even longer. Knowledge of the exact time periods and provisions is important, as they vary across countries and can have significant effects on a business’s competitive advantage and profitability.
Assume the weekly payroll of the Abbott Company is $5,000. December 31, the end of the year, falls on a Wednesday and Abbott will pay its employee on Friday for the full week. What adjusting entry will Abbott make on Wednesday, December 31 (Use five days as a full work week)?
Answer:
Salary Expense A/c Dr. $3,000
To Salary Payable A/c $3,000
Since salary will be paid on Friday therefore, liability is recorded as salary payable.
Explanation:
As for the provided details,
The working week consists of 5 working days.
Thus, salary expense will be allocated to these 5 working days only. As the salary expense for a week = $5,000
That means salary expense for a day = $5,000/5 = $1,000 for each day.
Now, the financial year ends on December 31 which is Wednesday.
That means three days, of the working week, fall in the financial year.
Therefore, salary expense for the year will be = $1,000 [tex]\times[/tex] 3 = $3,000
Thus, entry for this will be:
Salary Expense A/c Dr. $3,000
To Salary Payable A/c $3,000
Since salary will be paid on Friday therefore, liability is recorded as salary payable.
Abbott Company should make an adjusting entry for $3,000 on December 31, accounting for three out of five working days of the weekly payroll cost.
Explanation:The subject of this question is related to the adjusting entries in accounting which is a part of Business studies. When Abbott Company arrives at the end of the year on Wednesday, December 31, it has already accrued three days of payroll, since a week is considered five working days. Even though the full $5,000 won't be paid until Friday, the company has an obligation for the portion of the week that's already passed.
Therefore, on December 31, the adjusting entry would account for three days of payroll. So, the adjusting entry will be for 3/5 of $5,000, which equals $3,000. The company would debit (increase) wages expense for $3,000 and credit (increase) wages payable for $3,000.
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Palms, Inc. wants to sell enough palm trees to earn a profit of $20,000. If the unit sales price is $40, unit variable cost is $22, and total fixed costs are $120,400, how many trees must be sold to earn a profit of $20,000?
Answer:
7.800 trees.
Explanation:
The basic profict equation is Profit = sales - costs.
Profit = sales - (variable costs + fixed costs)
Profit + fixed costs = sales - variable costs
Profit + fixed costs = n° units * (unit selling price - unit variable costs)
In this case, the equation is:
Profit + fixed costs = n° units * (unit selling price - unit variable costs)
$20.000 + $120.400 = n° units * ($40 - $22)
$140.400 = n° units * $18
$140.400 / $18 = n° units
7.800 = n° units
An economy produces only food and shelter. There are two individuals in the economy: Bill and Mary. Mary's opportunity cost of producing 1 unit of shelter is 2 units of food. Bill's opportunity cost of producing 1 unit of shelter is 4 units of food. Who has a competitive advantage?
Answer:
Mary
Explanation:
Mary has a competitive advantage and has a lower opportunity cost than Bill just having to sacrifice 2 units of food for 1 shelter, while Bill has to sacrifice 4 units of food for producing 1 unit of shelter. It is possible to observe this in the production relation:
Mary's productivity:
[tex]\frac{1}{2}=0.5[/tex]
Bill's productivity:
[tex]\frac{1}{4}=0.25[/tex]
We see that Mary has a higher productivity rate, which means that she has the competitive advantage
When managers use a management information system, no management action is needed if a activities are performed as planned and standards are met b all employee performance reviews are completed on schedule c there are no changes in the organization d none of the answers is correct
Answer:
d none of the answers is correct
Explanation:
Even in organizations with superb management information systems, manager action is necessary. It´s extremely rare a situation where all the activities are 100% performed as planned and standards met. Fully compliance it´s not compatible with systems where human being is the main resource. Moreover, information systems need human action to keep updated and monitored.
Answer:
none of the answers is correct
Explanation:
In a department meeting, Jamira engages in a thoughtful dissent aimed at constructively challenging her manager, Shivana, to rethink the decision to close two major client accounts. Jamira is engaging in which of the following?
a) Constructive resistance
b) Dysfunctional resistance
c) Control
d) Forceful resistance
e) Conformity
Answer:
The correct answer is a) Constructive resistance.
Explanation:
Constructive Resistance is the ability of structural elements to withstand the efforts to which they are subjected without breaking. It depends on many factors among which the material used, its geometry and the type of union between the elements stand out.
The selling concept is typically practiced with ________.A) industrial productsB) unsought goodsC) specialty productsD) convenience products
Answer:
B) unsought goods
Explanation:
The selling concept -
The concept of selling tells that the consumers will not buy enough any product of any firm unless and until it undergoes some large - scale selling and promotional efforts .
This concept is used for unsought goods , the goods those which the buyers do not normally think of buying , example insurance .
Mainline Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (-5 percent) for the last few years. In this scenario, Mainline Ltd. has a
competitive advantage.
power position.
competitive disadvantage.
balanced scorecard.
Answer:
competitive disadvantage
Explanation:
According to my research on different business strategies, I can say that based on the information provided within the question in this scenario Mainline Ltd. has a competitive disadvantage. This term refers to an unfavorable circumstance or condition that causes a firm to underperform in an industry. Which in this case low demand for landlines causes this.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Meyer Media produced several screenplays that they turned into movies. Each screenplay they use has a copyright. In which section of the financial statements should they record these copyrights?
A. in the property, plant, and equipment section of the balance sheet
B. in the intangible assets section of the balance sheet
C. in the stockholders’ equity section of the balance sheet
D. in the expenses section of the income statement
Answer:
B. in the intangible assets section of the balance sheet
Explanation:
In the given question, the Meyer media produces several screenplays. By using each screenplay it has a copyright and we know that copyright is an intangible asset which comes under the intangible asset section under the asset side of the balance sheet.
And the intangible assets include patents, goodwill, trademark, etc.
The rest options are incorrect.
Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing operations. ___________
Answer:
REVENUES
Explanation:
Revenue, often referred to as sales, are the inflows or other enhancements of assets of an entity or settlements of its liabilities (Income) received from the entity's ongoing operations. Includes discounts and deductions for returned merchandise. It is the first income on a company's Income Statement from which all charges, costs, and expenses are subtracted to arrive at net income.
Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Jonas devises his firm's logistics plan?
A. Price
B. Product
C. Geography and infrastructure
D. Promotional strategies
E. Channels of distribution
Answer:
The correct answer is c) Geography and infrastructure
Explanation:
Geography and infrastructure are uncontrollable variables that would be the chief concern as Jonas devise his firm's logistics plan; because Jonas must devise a logistics plan for crossing the Andes Mountains daily; and South America's geography, in special the Andes mountains, are the longest continental mountain range in the world. The Andes are compounded by a lot of peaks of mountains and also have the second most elevated highest peak of any mountain range, just superated by the Himalayan peak.
Mason is restoring a car and has already spent $3500 on the restoration. He could sell the car now for $2800. However, if Mason does an additional $2000 of work, the car would be worth $5000 to potential buyers. What should Mason do?
Answer:
mason complete the additional work $5000 after that he sell and get profit $200
Explanation:
given data
spent on restoration = $3500
sell car = $2800
additional work = $2000
car price = $5000
to find out
What should Mason do
solution
we say here after spending $3500 selling cost is $2800 so
loss will be 3500 - 2800 = $700
so if additional work is $2000
total present value will be = ( $2800 + $2000 )
total present value = $4800
so now if he sell car at $5000
he get profit = ( $5000 - $4800 )
profit = $200
so mason complete the additional work $5000 after that he sell and get profit $200
Suppose a profit-maximizing firm in a competitive market produces rubber bands.When the market price for rubber bands falls below the minimum of its averagetotal cost, but still lies above the minimum of average variable cost, in the shortrun the firm willa. experience losses but will continue to produce rubber bands.b. shut down.c. earn both economic and accounting profits.d. raise the price of its product.
Answer:
The correct answer is option a.
Explanation:
In the given example, a profit-maximizing perfectly competitive firm is producing rubber bands. The average total cost of producing is higher than the price per unit of the product. The firm will be incurring a loss. But the average variable cost is lower than price. This means the price is able to cover variable costs.
The firm in this situation will continue to produce in the short run, Though in the long run if the price is still lower than the average total cost the firm will exit the market because of incurring losses.
Hector has decided that he wants to open a business in which he sells garden and landscaping plants and provides classes on how to care for flowers and vegetables. Which form of business organization will Hector most likely choose when he initially opens his business?
Answer: Sole Proprietorship
Explanation: This is a form of a business organisation in which one person owns and controls the organisation. Also known as a sole trader, this is not a legal entity. There is no legal separation between the owner and the business itself. The person owns the business and is responsible for the debts incurred in the business. However this also means that the sole trader receives all the profits generated from the organisation.
Hector is thus the sole trader in this question. He will be personally liable for any debts incurred in the business, but he will also solely reap the benefits of the business, such as the profits earned. He can run the business under his own name, or create a fake name. But this will not separate his organisation from him.
Final answer:
Hector is most likely to choose a sole proprietorship when starting his business selling garden and landscaping plants and providing classes, due to the ease of management and complete control it offers.
Explanation:
Hector has decided that he wants to open a business selling garden and landscaping plants, and providing classes on how to care for flowers and vegetables. Given the description of his plans, the form of business organization Hector is most likely to choose when he initially opens his business is a sole proprietorship. This type of organization is well-suited for individuals starting a business by themselves, as it allows complete control over decision-making and is easy to establish. Hector would be able to manage the business, keep all of the profits, assume all the risks, and would not require special business taxes beyond paying income tax on the business earnings.
As Hector's business grows, he may consider other forms such as a partnership if he wishes to share responsibility and profits with other stakeholders, or he could evolve the business into a corporation for more complex operations and potential benefits like reduced personal liability and easier access to capital.
Hector's business involving garden and landscaping plants aligns with the principles of landscape horticulture and olericulture, deepening his engagement with the cultivation, marketing, and maintenance of plants. His expertise in these areas could greatly benefit his business and the educational aspect of his services.