Answer:
Option C is correct
C) budget deficit of $100,000.
Explanation:
A budget deficit or surplus is the difference between the estimated expenditures and revenue.
A budget surplus occurs where the estimated total revenue is greater that the estimated total expenditure.
On the other hand, it is deficit where the estimated revenue is less than the estimated expenditures
For City of Miketown, the budget deficit =
250,000 - 350,000
=$(100,000)
A firm has issued cumulative preferred stock with a $100 par value and a 12 percent annual dividend. For the past two years, the board of directors has decided not to pay a dividend. At the end of the current year, how much must the preferred stockholders be paid prior to paying the common stockholders
Answer:
Cumulative Preferred Dividend = $36
Explanation:
Given:
Stock value = $100
Dividend payment rate = 12%
Type of share = Cumulative preferred stock
Computation of per year dividend:
Per year dividend = Stock value × Dividend payment rate
Per year dividend = $100 × 12%
Per year dividend = $12
Computation of unpaid dividend:
Total unpaid dividend for 2 years = Per year dividend × 2 year
Total unpaid dividend for 2 years = $12 × 2
Total unpaid dividend for 2 years = $24
Cumulative Preferred Dividend = Current Year Dividend + Total unpaid dividend for 2 years
Cumulative Preferred Dividend = $12 + $24
Cumulative Preferred Dividend = $36
Stamford Co. purchased a bond on October 4 of the current year for $ 30 comma 000 and classified it as available-for-sale. The market value of the investment at year-end is $ 29 comma 000. What value will be reported in net income for the adjustment, if any? A. $ 29 comma 000 B. $( 1 comma 000 ) C. $0 D. Not enough information is given to determine the amount included in net income.
Answer:
C. $0
Explanation:
Data provided in the question
Purchase value of the bond = $30,000
And, the market value of the investment at the ending year is $29,000
So by considering the above information, the $0 would be reported in the net income as only realized gains are transferred to the income statement
While the unrealized gain or loss on available for sale securities transferred to Comprehensive income statement and accumulated amount goes to Balance Sheet as a Accumulated Other Comprehensive Income
The Welcome Inn has its new orientation program in place. The general manager has decided that new hires will work in relatively easy jobs until they get a feel for the work and get familiar with the industry. The Welcome Inn management is using which of the following undesirable approaches to orientation?a.a Mickey Mouse approachb.suffocationc.unrealistic job previewsd.emphasis on paperwork
Answer:
A) a Mickey Mouse approach
Explanation:
A Mickey Mouse approach to orientation refers to training or assigning new employees with the easiest jobs available so that they can feel the work and the company's organizational culture. The problem with this type of approach is that new employees might feel that their own capabilities are not being taken in account. It can lower new employees' morale and actually make them want to change their job. E.g. you are an accountant and they assign you a messenger's job.
Fixed costs including depreciation have increased at Leverage Inc., from $4 million to $5.3 million in an effort to reduce variable costs. What must the new variable cost percentage of sales be to break even from an accounting perspective at $20 million?
Answer:
VC% = 73.5%
The New variable cost percentage of sales = 73.5%
Explanation:
Given;
New Fixed cost = $5.3 million
Total cost = $20 million
Total variable cost = $20 - $5.3 = $14.7 million
Variable cost percent=(total variable cost/total cost)×100%
VC% = (14.7/20) × 100%
VC% = 73.5%
Answer:
73.5%
Explanation:
Break-even is the level of sales at which the business have no profit no loss. At this point business only covers the the variable and fixed cost.
As we know the break-even sales value can be calculated as follow:
Break-even sales = Fixed cost / Contribution margin ratio
As per given data
Break-even sales = $20 million
Fixed Cost = $5.3 million
Placing value in the formula
$20 million = $5.3 / Contribution margin ratio
Contribution margin ratio = $5.3 million / $20 million = 0.265 = 26.5%
As we know
Contribution margin = Sales - Variable cost
26.5% = 100% - Variable cost ratio
Variable cost ratio = 100% - 26.5% = 73.5%
Unscheduled absenteeism has climbed to its highest levels in XYZ Company last month. Inorder to reduce the costs associated with unscheduled absenteeism HR professionals in XYZCompany decided to change their paid time off policy. This company used to grant eachemployee 10 vacation days, 5 paid days for sick leave, and 4 days for personal leave. With thenew policy, this company combines vacation, sick leave, and personal leave policies into onesingle paid time off policy (i.e., 19 days). The management decided to keep funeral leave as astand-alone policy. What is XYZ Company's new policy called?
A) integrated paid time off
B) combined paid time off
C) sabbatical leave
D) volunteer leave
Answer:
A) integrated paid time off
Explanation:
Integrated paid time off (PTO) is a policy employed by many organizations where all paid time off benefits are combined into one, equaling a total of the paid days off for holidays, vacation, sick leave, and personal days the employee would have received in a separate paid time off system.
McDonald has invented a machine that harvests corn in the field, automatically shucks the corn from the husk, and peels the kernels from the cob, separating everything for easy disposal or further use. Assuming that all requirements are met for a patent, the length of his patent protection will be __________.a. 14 years from the completion of the invention. b. 20 years from the completion of the invention. c. 14 years from the filing of the application with the U.S. Patent and Trade Office. d. 20 years from the filing of the application with the U.S. Patent and Trade Office.
Answer:
Correct option is (d)
Explanation:
Utility patent is granted to protect an innovation from being copied by others. Utility patent is granted to protect the functionality or usage of the product while design patent is granted to protect the way the product looks like its appearance or ornamentation.
Utility patent is granted for 20 years from the date the application is file with the US trade office while design patent is granted for 14 years from the date of invention.
Here, McDonald's invention is granted utility patent that protects the product for 20 years from the date application is filed with the US patent office.
McDonald's machine for harvesting and processing corn would be protected by a patent for 20 years from the filing date with the U.S. Patent and Trade Office.
Explanation:The length of patent protection for McDonald's invention that harvests, shucks, and peels corn would be 20 years from the filing of the application with the U.S. Patent and Trade Office. This duration applies to most patents on new inventions and is intended to provide a balance between giving the inventor time to recoup their investment and preventing them from maintaining a permanent monopoly. The inventor is granted the exclusive legal right to make, use, or sell the invention during this period. It is worth noting that while patents incentivize innovation, the system is not perfect, with only a fraction of the invention's economic value typically returning to the inventor, and in rapidly advancing industries, patents may quickly become obsolete.
Sarah needs funding to research the efficacy of a certain drug for the treatment of cancer. Though her initial trials have been inconclusive, Sarah is sure that the drug will prove to be effective. However, the organizations she plans to approach for funding will not be very impressed with the results of the previous trials and may withhold funding. Sarah has to structure her proposal in such a way that she emphasizes the positives about the drug and minimizes the negative information. Which of the following best describes Sarah's technique of writing her proposal?
A) diagonal communication
B) filtering
C) defensiveness
D) jargon
Answer:
The answer to this question would be defensiveness or option C) mentioned in the answer list or options.Explanation:
Defensiveness or defensive behavior basically arises from any doubt, fear, prevention of negative outcome/s and/or apprehension of rejection or disapproval.In this case, Sarah is apprehensive or doubtful about the funding that she needs to receive from the various organizations. She is skeptical that if she reveals the negative outcomes or the information about the cancer medicine or drug that she is working on, she might loose funding for her research and experiments.Therefore, in this case, Sarah's approach towards the construction of the research proposal can be ideally identified as a defensive mechanism to prevent any undesirable outcome,reflected by the potential possibility of rejection of the research funding.This defensive mentality led her to eliminate all the negative information or results and only include the positive ones about the concerned drug.Many identify increased globalization as a main factor that led to the economic resurgence seen in the 1990s. Although globalization has been an important part of international commerce since the Columbian Exchange between the Old and New Worlds beginning in the 1500s, the globalization of the late twentieth century is unique in many ways. Fill in the blanks to complete the passage describing the response to globalization at the World Trade Organization conference in Seattle in 1999.
Answer:
The response of many people in Seattle at the World Trade Organization conference of 1991 was overwhelmingly negative.
Many anti-globalization groups met there to protest, and the protests soon erupted into riots.
Among the groups protestings were: enviromentalists, conservationists, trade unions, socialists and communist parties, and citizens who opposed globalization.
The World Trade Organization was seen by those groups of people as a too powerful tool that was bringing globalization to countries without necessarily having the consent of the people.
The rise of globalization in the late twentieth century, characterized by a significant increase in international trade and capital flows, is largely credited with driving the economic resurgence in the 1990s. This modern wave of globalization distinguished itself with the growth of multinational corporations and complex global networks, leading to varied reactions such as those seen during the WTO conference in Seattle in 1999.
Explanation:Globalization and the 1990s Economic Resurgence
The economic resurgence in the 1990s is frequently attributed to the intensification of globalization, an ever-growing expansion of cultural, political, and economic connections across the globe. Notably different from earlier forms of international trade, globalization in the late twentieth century was characterized by an unprecedented increase in the exchange of goods, services, and financial capital across national borders. The response to this wave of globalization culminated in significant events such as the World Trade Organization conference in Seattle in 1999, which sparked widespread debate and protests reflecting diverse reactions to the impact of global economic integration.
The concept of globalization is not new, dating back to the Columbian Exchange; however, the rapid acceleration in the late twentieth century was a result of various technological, political, and economic changes. Global exports as a percentage of global GDP climbed significantly from the nineteenth century through the early part of the twentieth century, only to be interrupted by world wars and economic depressions. Following World War II, the process of rebuilding global economic connections began slowly, and by the 1980s, the impact of global economic forces on the world economy started becoming as salient as they were before World War I.
Modern globalization can be observed through multinational corporations like Walmart, McDonald's, or Ford engaging in international trade by utilizing labor and resources from various countries to offer products and services worldwide. The complexities and scale of economic globalization have prompted diverse responses, including the significant protests at the WTO conference in Seattle, reflecting the concerns and critiques from different sectors of society about the implications of such global interconnectedness.
An investor seeking to recover stock market losses from a CPA firm associated with an initial offering of securities based on an unmodified opinion on financial statements that accompanied a registration statement, must establish that:
Answer:
The audited financial statements contain a false statement or omission of material fact.
Explanation:
Base on the scenario been described in the question, for an investor seeking to recover stock market losses from CPA, he must established that the audited financial statements contain a false statement or omission of material fact. If he can be able to establish this fact or prove that the statement contains false material, he will be able to recovery the stock losses in the market . The statement provides the prove he needs .
Problem 6-6 Bond Prices [LO 2] App Store Co. issued 16-year bonds one year ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. Required: If the YTM on these bonds is 5.4 percent, what is the current bond price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer:
$1,081.53
Explanation:
For computing the current bond of the price we need to use the present value formula i.e to be shown in the attachment below:
Given that,
Assuming Future value = $1,000
Rate of interest = 5.4% ÷ 2 = 2.7%
NPER = (16 years - 1 years) × 2 = 30 years
PMT = $1,000 × 6.2% ÷ 2 = $31
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current bond price is $1,081.53
Jahwana works for a large corporation with a 401(k) retirement plan. The company matches dollar for dollar the first 5% of the employee's salary contributed to the 401(k). Jahwana currently earns $40,000 in gross salary and she currently contributes 15% of her salary into her 401(k). How much money in dollars is the total contribution to her account (her contribution plus the employer match) every year?
Answer:
$8,000
Explanation:
Jahwana earns $40,000:
her 401k contributions = 15% x $40,000 = $6,000
Jahwana's employer contributes $1 per $1 that she contributes but only up to 5%, so her employee's 401k contribution = 5% x $40,000 = $2,000
total annual contribution = $6,000 + $2,000 = $8,000
Answer:
$8,000
Explanation:
Total contribution to Sophia's account = Jahwana's contribution + Company's contribution
Jahwana's contribution ( $ 40,000 * 15% ) = $ 6,000
Company contribution( $ 40,000 * 5% ) = $ 2,000
( $ to $ restricted to 5% of employee's salary)
Total contribution to Jahwana's account = $ 8,000.00
Blending the firm's promotion efforts to convey a complete and consistent message is the goal of: A. sales management communications. B. sales promotion communications. C. integrated promotional marketing. D. integrated marketing communications. E. integrated sales promotion.
Answer: D. integrated marketing communication.
Explanation: In integrated marketing communication, it blends the company promotion effort to convey messages that are complete and consistent is a goal to achieve.
Integrated marketing communication is a concept that make sure all forms of messages and communication are linked together. It involves Integrating all promotion tool so it all can work together.
Answer:
D
Explanation:
Integrated marketing promotion is a system where an organization systematically coordinate and link together the different channels of its communication to work in harmony and deliver a complete and consistent message.
The collective result of the different communication channels is always higher compared to each of the channels functioning on its own.
It has its benefit in increased profit , customers' loyalty , effective communication , long term relationship with customers , etc.
The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves. What is the maximum possible expansion in the money supply as a result of this initial deposit?
Answer:
Maximum expansion in money supply = $5,000
Explanation:
The fractional banking system requires banks to keep a percentage of their total deposit as reserve and lend the rest as loans and advances
The total maximum amount that can be created by the bank is equal TO the amount of deposit multiplied by the creation multiplier.
The multiplier = 1/reserve ratio
Maximum amount = 1,000 × 1/0.2
= $5,000
The maximum possible expansion that could be seen in money supply by using initial deposits would be $5,000.
The reserve requirement is given as 20% or 0.20 and $1,000 as initial deposits.
The computation of money supply expansion is determined with the help of a money multiplier, which is given below:
[tex]k=\frac{1}{RR}\\=\frac{1}{0.20} \\=5[/tex]
Here, k is the money multiplier and RR is the reserve ratio.
Hence, the final increase in the money supply would be derived by multiplying the value of multiplier with initial deposits, that is:
[tex]5*1000\\=5000[/tex]
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Consider the effects of inflation in an economy composed of only two people: Charles, a bean farmer, and Dina, a rice farmer. Charles and Dina both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4.
1. Suppose that in 2017 the price of beans was $2 and the price of rice was $8.
(a) Inflation= ?%
(b) Indicate whether Charles and Dina were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Charles
Dina
2. Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.
(a) In this case, inflation= ?%
(b) Indicate whether Charles and Dina were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Charles
Dina
3. Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.
(a) In this case, inflation= ?%
(b) Indicate whether Charles and Dina were better off, worse off, or unaffected by the changes in prices.
Better Off
Worse Off
Unaffected
Charles
Dina
4. What matters more to Charles and Dina?
The overall inflation rate
or
The relative price of rice and beans
The inflation in 2017 was 100% and both Charles and Dina are unaffected.
1. In 2016 the price of beans was $1, and the price of rice was $4 but in 2017, the price of beans was $2 and the price of rice was $8.
This implies that the market basket has increased from $5 to $10. The inflation will be: = (10 - 5) / 5 × 100 = 100%
Therefore, both of them are unaffected by the increase in price.
2. If the price of beans was $2 and the price of rice was $4.80, then the market basket is $6.80. Therefore, the inflation will be:
= (6.80 - 5) / 5 × 100
= 36%
Inflation is 36%. In this case, Charles is better off because the price of beans has doubled.
3. The Inflation based on the information given will be:
= (3.60 - 5) / 5 × 100
= -28%
In this case, Charles is still better off and there's a fall in inflation by 28%.
4. It should be noted that the relative price of rice and beans matters more to Charles and Dina.
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For Charles and Dina in a two-person economy of rice and beans, the relative price of goods is of greater importance than the absolute prices due to their consumption and trading patterns. The Consumer Price Index (CPI) highlights the significance of the weighted average of prices in determining inflation's impact on economic decisions.
Explanation:To Charles and Dina, who are both consumers and producers in an economy that only consists of rice and beans, the relative price of these goods would matter more than their absolute prices. Each consumes equal amounts of both goods, so when considering inflation, what matters to them is how the price of one commodity changes relative to the other. If the price of beans, which was $1, inflates to $2, and the price of rice, originally $4, also inflates to $8, their relative price remains the same, and they can continue to trade equally.
However, if the price of beans doubles but the price of rice does not, Charles (the bean farmer) will find that his beans buy less rice than before, adversely affecting his consumption and trade capabilities. The concept of the Consumer Price Index (CPI) exemplifies this by looking at not just individual good's price changes but at a basket of goods and how changes in prices affect buying power.
This consideration of relative prices is crucial in understanding the structure of the economy and how inflation impacts consumption and trade. Changes in the weighted average of prices, accounting for actual consumption, are therefore more relevant to Charles's and Dina's economic decision-making than the change in the price of any single good on its own.
A magazine ad designed for Target's new campaign shows a well-dressed shopper pushing her loaded Target cart to her Jaguar, showing satisfaction in the parking lot as she spots another consumer loading Target shopping bags into her Jaguar. Which objective is this ad hoping to achieve?
Answer:
The ad is trying to situate the brand socially.
Explanation:
The ad is trying to give target desired social meaning by increasing the brand's social appeal. To do this they use trend setting to their advantage. The ad uses visual scenes to create a feeling in the consumer which is activated whenever the customer uses the product.
City Bank is considering making a $50 million loan to a company named SheetOil that wants to commercialize a process for turning used blankets, pillowcases, and sheets into oil. This company’s chances for success are dubious, but City Bank makes the loan anyway because it believes that the government will bail it out if SheetOil goes bankrupt and cannot repay the loan. City Bank’s decision to make the loan has been affected by:__________.
A. Liquidity
B. Moral hazards
C. Token money
D. Securitisation
Answer:
The correct option is B,moral hazards
Explanation:
Securitisation implies the a situation a guarantee against a loan is given by another party or even the borrower by using an asset as a collateral for the sum borrowed.In this case, the government has not given any form of security against SheetOil's loan.
Liquidity is the need to access cash in order to be able to discharge business obligations,hence option A is wrong.
Moral hazards is the tendency to take risks as an incentive to improve business performance,it is clear that City Bank is aware that loan might turn bad but still went in sealing the deal with SheetOil.
Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P5. If something happens that shifts the AD curve to the AD1position, the economy will eventually settle down at a long-run equilibrium point of __________.a. P5, Q3.b. P4, Q4.c. P3, Q3.d. P3, Q5.e. P4, Q2.
Answer:
c) P3, Q3.
Explanation:
The new long run equilibrium point will be where the aggregate demand curve 1 (AD1) intersects long run aggregate supply curve (LRAS) at P3, Q3.
Since the LRAS curve is horizontal at Q3, all the equilibrium points must be located at Q3, so all you have to check is at what price the AD curve intersects Q3.
An electronic products producer synthesizes its abilities in miniaturization, microprocessor design, material science, and ultrathin precision castings to produce digital watches. It uses the same skills to produce card calculators, digital cameras, and other small electronics. These collective skills are known as _________________.a. shared activities.b. strategic resources.c. core competencies.d. economies of scope.
Answer:
Core competencies
Explanation:
Competencies can be defined as a combination of various skills which are essential to increase productivity.
Core competencies can be described as the different skills and practices which all employees in an organization are expected to possess irrespective of the various department's they belong to.
Some examples of core competencies include:
- Creativity
- Team work
- Technological awareness
- Leadership
- Good sense of organization.
- Accountability
The collective skills that the electronic products producer uses to produce digital watches, card calculators, and digital cameras are known as core competencies.
Explanation:The collective skills that the electronic products producer uses to produce digital watches, card calculators, and digital cameras are known as core competencies. Core competencies refer to the unique strengths and capabilities that a business has, which allow it to outperform its competitors and deliver value to customers. In this case, the company's abilities in miniaturization, microprocessor design, material science, and ultrathin precision castings are its core competencies.
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Luxx Inc. currently has assets to $5 million, zero debt, is in the 40 percent federal- plus-state tax bracket, has a net income of $1 million, and pays out 40 percent of its earnings as dividends. Net income is expected to grow at a constant rate of 5 percent per year, 200,000 shares of stock are outstanding, and current WACC is 13.40 percent.
The company is considering a recapitalization where it will issue $1 million in debt and use the proceeds to repurchase stock. Investment bankers have estimated that if the company goes through with the recapitalization, its before-tax cost of debt will be 11%, and its cost of equity will rise to 14.5%.
A. What is the stock's current price per share (before the recapitalization)?
B. Assuming the company maintains the same payout ratio, what will be its stock price following the recapitalization?
Answer: a.)$25 ; b.) $30.96
Explanation:
A.) Stock's current price per share:
Net income = $1,000,000
Dividend paid = 0.40 x $1,000,000 = $400,000
Dividend per share before recapitalization = $400,000 / 200,000 = $2
Price of the share before recapitalization is calculated as:
D1 = $2 × 1.05 = $2.10
P0 = D1/Ke - g
= $2.10/ 0.134 - 0.05
= $25
B.) Portion of equity after recapitalization = (200, 000 x $25) - $1,000,000 = $4,000,000
Portion of debt = $1,000,000
Revised WACC after recapitalization = Ke x E/V + Kd(1-t) x D/V
= 0.145 x $4,000,000/$5,000,000 + 0.11 x (1-0.40) x $1,000,000/$5,000,000
= 0.1292
= 12.92%
Revised net income is calculated as:
Before tax income = $1,000,000/0.60 = $5M
Interest = 0.11 x $1,000,000 = $110,000
Earning before tax = $1556666
40% of tax = $622,666.4
Net income = $933,999.60
Revised dividend = $933,999.60 x 0.40 = $373599.84
DPS = $373599.84/(200,000 - ($1,000,000/$25))
$373599.84/160,000
= $2.335
Revised price of the share after recapitalization:
$2.335 x 1.05 / 0.1292 - 0.05
2.45175 / 0.0792
= $30.96
Angelica is the CEO of Sandhaven Ltd., a publicly traded company. The shareholders want Angelica on the board of directors despite her recent appointment as the CEO. This decision of the shareholders is most likely because Angelica is:_________.
a. likely to provide the board with valuable inside information.
b. more likely than other board members to take care of the stockholders.
c. also the CEO of other companies.
d. a board member of a major client.
Answer:
likely to provide the board with valuable inside information.
Explanation:
Strong cooperation between the CEO and shareholders can help define a broad and forward-looking board agend. Angelica is mostly likely appointed to the board because she is likely to provide the board with very important inside information, of which without such valuable inside information, the board would not be able to effectively monitor the firm.
A leveraged buyout refers to a(n): a. action where the management of the firm and/or an external party buys all of the assets of a business financed largely with equity. b. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private. c. firm pursuing its core competencies by seeking to build a top management team that comes from a similar background. d. firm restructuring itself by selling off unrelated units of the company's portfolio.
Answer:
a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
Explanation:
A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.
Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.
So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken
Which of the following is NOT one of the main tasks of strategy-making in a diversified company? 1. establish investment priorities so that resources are steered into most attractive businesses 2. initiate actions to boost combined performance of
The question seems incomplete but here is the complete question.
Which of the following is not one of the main tasks of strategy-making in a diversified company?
1) Establish investment freedom priorities so that resources re steered into most attractive businesses.
2) initiate actions to boost combined performance of the corporation's collection of businesses
3) Picking the new industries to enter and deciding on the
means of entry.
4) pursuing opportunities to leverage cross-business value
chain relationships and strategic fit into competitive
advantage.
5) Divesting well-performing businesses.
Answer:
5) Divesting well-performing businesses.
Explanation:
A firm or company's strategy-making can be greatly influenced y several factors which do not include the castigation of a fellow company or firm. Strategies involve several methods, factors or ways which a firm, company or business can adopt that may improve it's outputs or other goals which are of great relevance. The other factors mentioned above are great strategies which firm can develop n other to achieve its goals and objectives.
The main task of strategy making for diversify the company should be considered as the Divesting well-performing businesses.
Impact of firm strategy:Since the firm or the strategy of the company should be impacted by the various factors that does not involved the castigation of a fellow company or the firm. Here the business could be adopted for improving the outputs or the other goals that contain the high relevance.
Also, the investment made, initiate actions, etc should be considered as the main task.
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Which of the following statements is CORRECT? a. One advantage of the corporate form of organization is that liability of the owners of the firm is limited to their investment in the firm. b. Bond covenants are an effective way to resolve conflicts between shareholders and managers. c. Corporations generally are subject to more favorable tax treatment and fewer regulations than partnerships and sole proprietorships, which is why corporations do most of the business in the United States. d. Because of their simplified organization, it is easier for sole proprietorships and partnerships to raise large amounts of outside capital than it is for corporations. e. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value than are managers who do not face the threat of hostile takeovers
Answer:
a. Liability of the owners of the firm is limited to their investment in the firm.
Explanation:
A corporation is defined as a form of business owned by shareholders and controlled by elected group of board of directors. A corporation is a legal entity which means that it can sue and be sued. It can also enter into a contractual relationship.
In a corporation, the liability of the
shareholders or owners of the firm is limited to their investment in the firm because of the doctrine of separate legal entity. In case of liquidation, owners would only loose their investment in the firm rather than loosing their investment and personal properties.
A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals _________.
Answer:
$259.35
Explanation:
The computation of the amount of cash paid is shown below:
= (Purchase value of merchandise - returned goods of merchandise - discount charges)
= ($9,100 - $455 - $259.35)
= $8,385.65
The discount charges is
= (Purchase value of merchandise - returned goods of merchandise) × discount rate
= ($9,100 - $455) × 3%
= $259.35
We simply applied the above formula
You paid $25 for your ticket to the football game, only to see your favorite team losing 28-0 at the end of the first quarter. That $25 should now be regarded as a(n) __________ cost that economists say should be __________ in your decision on whether or not to stay at the game or leave.
Answer:
Sunk; disregarded
Explanation:
Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.
No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.
I hope my answer helps you
Celeste's accountant fails to prepare her tax returns accurately, and Celeste is charged penalties and interest by the Internal Revenue Service (IRS) and her state because of the error. In order to prevail in a lawsuit for negligence against her accountant Celeste must prove all of the following, except that:_______
a. her injury was proximately caused by the accountant's breach of the duty of care.
b. a duty of care existed.
c. she suffered financial harm.
d. the accountant was a member of a professional organization
Answer:
Option D. The accountant was a member of a professional organization.
Explanation:
The reason is that for a successful claim under the negligence act, the claimant have to prove following three things:
Duty of care existed between the relationShe has suffered economic harm &The harm was proximately caused by the accountant's breach of the duty of care.So the accountant's membership is not a valid requirement under the negligence act for a successful claim.
A December 15, 2008, purchase of goods was denominated in a currency other than the entity's functional currency. The transaction resulted in a payable that was fixed in terms of the amount of foreign currency and was paid on the settlement date, January 20, 2009. The exchange rate of the currency in which the transaction was denominated changed at December 31, 2008, resulting in a loss that should:
A. Not be reported until January 20, 2009, the settlement date.
B. Be included as a component of comprehensive income for 2008.
C. Be included as a deferred charge at December 31, 2008.
D. Be included as a component of income from continuing operations for 2008.
Answer:
D. Be included as a component of income from continuing operations for 2008.
Explanation:
The exchange rate change in 2008 caused foreign currency exchange to loss. This loss should be recognized in 2008 as a component of income from continuing operations in the income statement. Also, losses and gains that was caused by the changes in exchange rates are identify in current earnings in the period in which the exchange rate changes caused the loss.
A conspiracy where participants at one end may know nothing of those at the other end, but every participant handles the same commodity at different points, such as manufacture, distribution, and sale is known as
Answer: A chain conspiracy
Explanation:
A chain conspiracy is one of the type of agreement between two and more than two person with some legal act and a chain conspiracy is one of the law based theory in which the different types of requirements and the procedures are followed based on the given situation.
According to the given question, a chain conspiracy is one of the business method in which the different types of participants are unaware about the other end-clients's information but handling the similar type of commodity in an organization such as:
The manufacturing processThe distribution process Sale departmentCustomers help departmentTherefore, Chain conspiracy is the correct answer.
Hometown Appliance has been having issues with salesmen who are giving customers incorrect pricing or information or creating advertising to draw customers into the store only to tell them that the item is sold out. In order to resolve some of the ethical issues that the organization is having, what might be the best solution?
Answer:
start at the top of the command structure
Explanation:
Based on the scenario being described it can be said that the best solution to this would most likely be to start at the top of the command structure. This would allow you to go down the chain of command in order to find and stop the communication problem at the source. Which in doing so you will fix the problem completely, since the rest of the employees will begin to receive the correct information regarding the products.
Zoomer Company produces Optimist sailboats. The costs of producing 100,000 tiller extensions for use in the boats are as follows: Direct labor $250,000 Direct materials 300,000 Variable overhead 65,000 Fixed overhead 185,000 An outside supplier has offered to supply the tiller extensions for $720,000. If Zoomer accepts the offer $85,000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer?
Answer:
It is cheaper to make the product in house.
Explanation:
Giving the following information:
Direct labor $250,000 Direct materials 300,000 Variable overhead 65,000 Fixed overhead 185,000 An outside supplier has offered to supply the tiller extensions for $720,000. If Zoomer accepts the offer $85,000 of fixed costs can be avoided.
We will calculate the total cost of both options:
Make in the house:
Total cost= 250,000 + 300,000 + 65,000 + 185,000= $800,000
Buy:
Total cost= 720,000 + 100,000= $820,000
It is cheaper to make the product in house.