Answer:
The answer is: You would expect a lower stock price.
Explanation:
Since John Deere´s main business is manufacturing and selling farming equipment you would expect its sales to rise when farmers are having a successful business year. But when farmers are having a very harsh and bad economic year then you would also expect John Deere´s sales to fall.
If your clients are suffering from a drought that means they will probably lose money or in a best case scenario earn a smaller profit. So they will have less money to invest in new equipment which results in lower sales for companies like John Deere. If John Deere´s sales are lower, they themselves will have a bad economic year so it is logical to assume that their stock price will fall.
Suppose that each firm in an industry has a total cost curve given by TC = 7,000 + 50Q. The lowest average total cost of producing 1,000 units of output occurs when:
a. one firm produces all 1,000 units of output.
b. four firms each produce 250 units of output.
c. 10 firms each produce 100 units of output.
d. two firms each produce 500 units of output.
Answer:
The correct answer is a. one firm produces all 1,000 units of output.
Explanation:
The total cost TC to calculate the accounting equilibrium point PE considers the fixed costs FC that have no dependence on the quantity produced Q and the total variable costs CVT that depend on the quantity produced Q.
For example, a producer will pay the same amount for rent regardless of the amount he produces, but will incur a cost for raw materials that will vary according to the number of units produced.
The fixed costs do not depend on the volume of production, however, the variable costs do depend on the volume or level of production.
Which of the following will shift the supply curve to the left?
a. An increase in the price of inputs to production.
b. A change in consumer tastes and preferences.
d. Government deregulation of production.
Answer:
The correct answer is option a.
Explanation:
An increase in the price of inputs of production will cause an increase in the cost of production. The firm will now be able to produce less at the same cost.
As a result, the supply of the commodity will decline. this causes the supply curve to shift to the left further causing an increase in the price of the product.
Final answer:
An increase in the price of inputs to production will shift the supply curve to the left because it raises the costs for producers and decreases the quantity they are willing to supply at each price level. Hence, the correct option is A.
Explanation:
The question asks which factor will shift the supply curve to the left. The correct answer is: a. An increase in the price of inputs to production. This is because when the cost of inputs for creating a product goes up, it becomes more expensive for companies to make the same amount of product. As a result, the quantity that suppliers are willing to supply at each price level will decrease, which is represented by a leftward shift in the supply curve. This will likely lead to a decrease in the equilibrium quantity and an increase in the equilibrium price.
Factors like a change in consumer tastes and preferences and government deregulation of production usually affect the demand curve or supply curve differently. Changes in consumer preferences would typically cause the demand curve to shift, not the supply curve. Similarly, government deregulation often aims to simplify the production process, potentially leading to a rightward shift in the supply curve as it may lower costs or remove barriers, which is the opposite of the question's scenario.
Eleanor and her little sister Joanna are responsible for two chores on their family’s farm, gathering eggs and collecting milk. Eleanor can gather 15 dozen eggs or collect 5 gallons of milk per week. Joanna can gather 2 dozen eggs or collect 2 gallons of milk per week.
a. The family wants 2 gallons of milk per week and as many eggs as the sisters can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week?
dozen eggs.
b. If the sisters specialized, which sister should collect the milk?
c. If the sisters specialized, how many dozens of eggs would the family have per week?
dozen eggs
Eleanor and Joanna can combine their 17 dozen of eggs to produce the most dozens of eggs possible while still producing the required two gallons of milk. Eleanor can get more milk; she ought to concentrate on milk collecting.
a.
Eleanor's egg collection: 15 dozen eggs/week
Joanna's egg collection: 2 dozen eggs/week
Total egg collection: 15 + 2 = 17 dozen eggs/week
b.
Eleanor's milk collection: 5 gallons/week
Joanna's milk collection: 2 gallons/week
Since Eleanor can collect more milk, she should specialize in milk collection.
c.
Joanna's egg collection: 2 dozen eggs/week
Total egg collection: 2 dozen eggs/week
So, if the sisters specialized, the family would have 2 dozen eggs per week.
Learn more about Milk and Eggs here:
https://brainly.com/question/4087701
#SPJ12
The family has 17 dozen eggs per week and Eleanor should collect the milk if they specialized. If they specialized, the family would have 15 dozen eggs per week.
Explanation:a. To determine the number of dozens of eggs the family has per week, we need to calculate how many dozens of eggs each sister can gather. Eleanor can gather 15 dozen eggs per week, while Joanna can gather 2 dozen eggs per week. Since they each gather as many eggs as they can, the total number of dozens of eggs the family has per week is 15 + 2 = 17 dozen eggs.
b. If the sisters specialized, Eleanor should collect the milk since she can collect 5 gallons per week, while Joanna can only collect 2 gallons per week.
c. If the sisters specialized, the family would have 15 dozen eggs per week because that is the amount Eleanor can gather, while Joanna can only gather 2 dozen eggs per week.
Learn more about Sisters collecting eggs and milk here:https://brainly.com/question/13352612
#SPJ3
Suppose that Congress enacts a significant tax cut with the expectation that this action will stimulate aggregate demand and push up real GDP in the short run. In fact, however, neither real GDP nor the price level changes significantly as a result of the tax cut. This outcome can be explained by all of the following, except one. Which one of the following is the exception? A. The Ricardian Equivalence Theorem. B. Indirect crowding out. C. Automatic stabilizers. D. The Fed's contractionary monetary policy.
Answer:
C.
Explanation:
Automatic stabilizers are line items that automatically move the budget balance toward deficit when the output gap is negative and toward surplus when it is positive, even if there are no changes in tax or spending laws.
For example, income tax revenue increase when the economy expands, pushing the balance toward surplus. Or, unemployment benefits increase when the economy is in recession, pushing the balance into deficit.
By adding to aggregate demand during downtums, automatic stabilizers moderate the business cycle.
Economic models are:
A. simplified versions of reality designed to analyze "what is" to explain human decision making in a business context.
B. complex mathematical formulas designed to forecast future economic events such as inflation.
C. simplified versions of reality designed to analyze "what is" to explain human decision making in any context.
D. simplified versions of reality designed to analyze "what ought to be" to help the government improve outcomes. E.
Answer:
B.
Explanation:
This is quite a trick question. Because no matter how complex the mathematical formula gets, and it can get really complex, an economic model IS a simplified version of reality.
But B is the most acurate because it's the more general, "forecast future economic events" can be broad set of things,
Some times it models decision making, some time it doesn't. Some times models "what is" and some times "what ought to be".
For a nation that only produces two goods, the maximum amounts of each of those goods that can be produced are represented by points on a production possibilities curve that are half-way between the vertical and horizontal axes.
a) True
b) False
Answer:
False
Explanation:
Say that you have the product A in the vertical axis and product B in horizontal axis.
The point in the curve which intersects the vertical axis means means that the nation produces all A and no B. In this case, the maximum amount of A is given by that point.
The same is truth when the curve intersects with the horizontal axis, at which point you maximize production of B and don't produce any A
Compute cost of goods sold using the following information: Finished goods inventory, beginning $ 540 Cost of goods manufactured 4,400 Finished goods inventory, ending 950
un u get the numbers then subtract them and come good with the answer
It costs Orkid Company $17 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product sells for $25. Homer Industries offers to purchase 5,000 units at $19 each. In the deal, Orkid will incur special shipping costs of $1.50 per unit. If the special offer is accepted and produced with unused capacity, net income will:
A. increase $2,500.
B. decrease $5,000.
C. increase $10,000.
D. decrease $30,000.
Answer: Option (A) is correct.
Explanation:
Given that,
Variable costs = $17
Fixed costs to produce = $3
Product sells = $25
Homer Industries offers = 5,000 units
Unit selling price = $19
Shipping costs = $1.50 per unit
Net profit = Unit selling price - Variable costs - Shipping costs
= $19 - $17 - $1.50
= $0.50
Total increase in profit = 5000 units × Net profit
= 5,000 × 0.50
= $2,500
Mrs. Jamieson, a retiree, likes to invest in preferred stocks and bonds as it involves very little risk. She knows that the value of many of these stocks will not increase drastically, but the small returns help supplement her pension. Mrs. Jamieson's approach is an example of the market timing strategy. True or false?
Answer:
False
Explanation:
Market timing refers to the process of buying and selling an asset on the best moment during a period of time, so the profit made is the best possible on that period, it not necessarily happens when an investment is made in lower risk assets. For example an asset value on January 1st was 100 you sold it on January 15th for 150 so your profit was 50, that asset closed at 120 on January 31st so you had a very good timing selling on 15th
What factors into the opportunity cost for a decision? time spent due to the decision the sum of all benefits from all foregone alternatives benefits from the best foregone alternative the difference between the benefits of the first and second best choices actual financial cost of the decision
Opportunity cost is calculated primarily from the benefits of the next best foregone alternative when a decision is made. The concept considers the highest value forgone option when a choice is made. Financial cost and time spent can also factor in.
Explanation:The opportunity cost for a decision primarily involves considering the benefits from the next best alternative that is forgone when a choice is made. This is the highest value option that is not chosen. In addition, other factors can factor into opportunity cost, including the actual financial cost of the decision, the time spent due to the decision, and potentially the sum of benefits from all foregone alternatives. However, these additional factors are typically secondary, as the concept of opportunity cost is meant to capture the value of the single best alternative forgone.
Learn more about Opportunity Cost here:https://brainly.com/question/32971162
#SPJ6
Which of these would be considered a controllable element in the domestic environment?
Multiple Choice
a. competition
b. economic climate
c. legal forces
d. political forces
e. firm characteristics
Answer:
a. competition
Explanation:
Domestic environment in business means the environment which includes the study of climate, business regulations, policies, laws and business rules. It also includes the structure and style of the governance, the political setup in the area, culture, logistics, believes and traditions, etc. It is very important to know the domestic environment of the business one wishes to start. The options b). economic climate, c). legal forces, d). political forces, e). firm characteristics are all uncontrollable element in the domestic environment while establishing a business because these factors are not under the direct control of an individual. So they are uncontrollable. The option a. competition is a controllable factor in the domestic environment because people running the same business can collaborate and run their business or negotiate with others for a smooth running of their business. It depends upon the individual to control the competition.
Thus, the answer is a. competition
__________ is any direct and personal communication with customers to assess and satisfy their needs and wants. Personal training and sports instruction are good examples of selling a service in the area of sports.
Answer:
Selling
Explanation:
Selling is any direct and personal communication with customers to assess and satisfy their needs and wants. Personal training and sports instruction are good examples of selling a service in the area of sports.
nyle Corp. owned 100 shares of Beta Corp. stock that it bought in 1993 for $9 per share. In 2014, when the fair market value of the Beta stock was $20 per share, Nyle distributed this stock to a noncorporate shareholder. Nyle's recognized gain on this distribution was:
Answer:
$1100.
Explanation:
We have been given that Nyle Corp. owned 100 shares of Beta Corp. stock that it bought in 1993 for $9 per share. In 2014, when the fair market value of the Beta stock was $20 per share.
Nyle's recognized gain on this distribution would be:
[tex]\text{Value of 100 share at a rate of }\$20\text{ per share }-\text{Value of 100 share at a rate of }\$9\text{ per share}[/tex]
[tex]\$20\times100-\$9\times 100=100(\$20-\$9)=100(\$11)=\$1100[/tex]
Therefore, Nyle's recognized gain on this distribution was $1100.
When Marine Midland Bank sent market researchers with surveys door-to-door in the neighborhoods surrounding its branch banks to ask people with savings accounts why they did not also have checking accounts and credit cards with Marine Midland, they were gathering _______________.
a) Questionnaire data
b) Secondary data
c) Intercept data
d) Observational data
e) Nonprobability data
Answer:
The correct answer is a) Questionnaire data.
Explanation:
The questionnaire is a set of questions about the facts or aspects that interest in an evaluation, in an investigation or in any activity that requires the search for information. The questions are answered by the respondents. It is a fundamental instrument for obtaining data.
The questionnaire should be written once the objective of what is going to be asked, of what is needed for the investigation, of the data requested or of the characteristics to be evaluated has been determined.
The survey necessarily responds to what has been developed based on the specific objectives, so that the questions that are asked respond to the information that is desired to be obtained. The teacher should not rush into the preparation of the questionnaire because it is an essential piece in obtaining the proposed purposes.
The exam or test that is developed ‘type questionnaire’ should be performed when all respondents are in the same psychological situation and, in addition, doing everything possible so that their answers can be compared. To make a good questionnaire the experience plays a great role since the ability to make them is considered a profession.
Suppose the Pleasant Corporation cuts the price of its American Girl dolls by 10 percent, and as a result, the quantity of the dolls sold increases by 25 percent. This indicates that the price elasticity of demand for the dolls over this range is:a. 2.5b. 0.4c. 0.5d. 5
Answer:
option (a) 2.5
Explanation:
Given:
Price cuts of dolls = 10 percent
Quantity of the dolls sold increases = 25 percent
Now,
Price elasticity of demand for dolls = [tex]\frac{\textup{Percentage change in Quantity sold}}{\textup{Percentage change in Price}}[/tex]
on substituting the respective values, we get
Price elasticity of demand for dolls = [tex]\frac25}{10}[/tex]
or
Price elasticity of demand for dolls = 2.5
Hence, the correct answer is option (a) 2.5
Which of the following is correct concerning recessions?
a. They are associated with comparatively large increases in investment spending.
b. They tend to be associated with rising unemployment rates.
c. They come at fairly regular and predictable intervals.
d. They are any period when real GDP growth is less than average.
Answer:
The answer is B They tend to be associated with rising unemployment rates.
Explanation:
Recessions are defined in economics as to consecutive quarters where real GDP is negative. So there must be two periods of comparison so D is not true as is not compared with average GDP. Recession are not predictable and can be associated to undetermined or nation wide events difficult to predict like war or falls of stock exchanges markets. In contrary, investment tends to decline and not increase in recessions as capital flows of investors tend to leave the country to other non risky assets. outside. However, as production is lower also the demand of labor by companies tends to be lower also , which produces generally higher levels of unemployment.
Bonds that can be redeemed at par at the option of their holders either at specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt are called ________.
Answer:
putable bond
Explanation:
According to my research on different financial investments, I can say that based on the information provided within the question the term being described is called a puttable bond. Like mentioned in the question this is a bond in which entitles the bondholder to return or redeemed the bond to the issuer on specified dates before its maturity date.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Which of the following statements is true of workbench memory? a.It has unlimited duration.b.It is considered to be preattentive.c.It uses semantic coding to store information.d.It has limited capacity.
Answer:
d.It has limited capacity.
Explanation:
workbench memory
It is a storage area in the memory system where the information is stored and encoded for long - term , and can be retrieved for the future use .
The capacity of a workbench memory is limited , hence , a particular amount of data can only be stored for future retrieval .
Hence , the correct statement for workbench memory is ( d ) .
April compiled checks, receipts and invoices, then entered them into Quickbooks. She printed out her financial statements and took themto the bank as documentation for a loan application. In that scenario, checks, receipts and invoices could be referred to as:
A. Documents and data
B. Data and information
C. Documents and information
D. Documents, data and information
Answer:
A. Documents and data
Explanation:
The document and data in a Quick book refers to the check, receipts, and invoices that were used to prepare the financial records that include cash flow statement, income statement, statement of stockholder equity, and the balance sheet.
These data and documents are very valuable things for the business organization. It is to be kept in safe custody. The use of these financial records is to apply bank loans, tax purposes, etc.
Thus, all other options are incorrect except A.
Step 4 of the analytical process includes the identification of additional facts or other information that may be necessary as a result of questions raised in the analysis of the problem.
Answer:
True
Explanation:
The complete lifecycle of analytics starting with collecting data, cleaning it, manipulating it then analyzing and presenting it.
It must include the identification of additional facts or other information that may be necessary as a result of questions raised in the analysis of the problem and this is best done during step 4 “Analyzing data” in order to solve the given problem statement.
The steps are:
1. Collecting data
2. Cleaning data
3. Manipulating data
4. Analyzing data
5. Visualizing data
During the fourth step “Analyzing data” using logical and analytical technique methods we may compare, for example, the sales of this year with last year’s so as to take future business decisions on the basis of historical data and this may help us answer the question or statement raised during the analysis of the problem.
Differences in the way people dress and act, their interactions with each other and with customers, and what qualities are expected and appreciated by their managers and company are examples of the _____.
Answer:
Organizational culture
Explanation:
Organizational culture refers to the values, beliefs and ways of interactions shared by people belonging to a particular organization. Ways people dress and their interaction varies from an organization to another. This eventually become a part of organizational culture that is followed by people throughout the organization.
An example of organizational culture is the kind of interaction between employees and client. Some follow formal chain of communication such as e-mails and fax while some follow informal means through text messages, chats and telephonic conversations.
Lava lake inc bottles and distributes spring water. om February 11 of the current year.Lava lake required 180,000 shares of common stock at$17 per share. on April 30th lava lake inc.sold 90,000 of reacquired shares at $20 per share. on August 22nd lava lnc sold 30,000 shares at $15 per share.
a. journalize the transactions of February 11,April 30 and August 22.
b. what is the balance in paid in capital from sale
treasury stock on December 31 of the current year?
c. for what reason might lava lake inc have purchased the treasury stock?
The three transactions are recorded with debits and credits to treasury stock and paid-in capital. By the end of the year, the paid-in capital from the sale of treasury stock is $210,000. Lava lake may have bought back its own shares to manipulate its stock price, distribute to employees, or use in acquisitions.
Explanation:The transactions are recorded as follows:
February 11: Lava lake purchased 180,000 shares of own stock at $17 per share. This will be debited to treasury stock for $3,060,000 (180,000 * $17).April 30: Lava lake sold 90,000 shares of treasury stock at $20 per share. The difference between cost and selling price, that is, $3 per share, will be credited to paid-in capital from treasury stock. Therefore, the entry is: Debit to Cash for $1,800,000 (90,000 * $20), Credit to Treasury Stock for $1,530,000 (90,000 * $17), and Credit to Paid-in Capital from Treasury Stock for $270,000 (90,000 * $3).August 22: Lava lake sold 30,000 shares of treasury stock at $15 per share. Since these shares were sold below cost, the difference here, that is, $2 per share, will be debited from the Paid-in Capital from Treasury Stock. Therefore, the entry is: Debit to Cash for $450,000 (30,000 * $15), Credit to Treasury Stock for $510,000 (30,000 * $17), and Debit to Paid-in Capital from Treasury Stock for $60,000 (30,000 * $2).For b., the balance in paid-in capital from sale of treasury stock on December 31 of the current year would be $210,000. This is calculated as follows: Beginning balance of $0 + $270,000 from April 30 sale - $60,000 from August 22 sale.
c. Lava lake might have repurchased its shares for a number of reasons: To increase its stock price by reducing the number of outstanding shares, to have shares on hand to distribute to employees under stock bonus plans or to use in future corporate acquisitions.
Learn more about Treasury Shares here:https://brainly.com/question/31978081
#SPJ3
a.
- Feb 11: Treasury Stock 3,060,000 / Cash 3,060,000
- Apr 30: Cash 1,800,000 / Treasury Stock 1,530,000 / Paid-in Capital 270,000
- Aug 22: Cash 450,000 / Paid-in Capital 60,000 / Treasury Stock 510,000
b. $210,000
c. Increase EPS, employee compensation, prevent takeovers, return capital, increase stock price.
a. Journalize the transactions:
1. February 11:
Dr Cash $3,060,000 (180,000 shares x $17 per share)
Cr Common Stock $3,060,000
- Issued 180,000 shares of common stock at $17 per share.
2. April 30:
Dr Cash $1,800,000 (90,000 shares x $20 per share)
Dr Treasury Stock $1,530,000 (90,000 shares x $17 per share)
Cr Common Stock $3,060,000
- Sold 90,000 reacquired shares at $20 per share.
- Removed the treasury stock at its cost ($17 per share).
3. August 22:
Dr Cash $450,000 (30,000 shares x $15 per share)
Cr Common Stock $450,000
- Sold 30,000 shares at $15 per share.
b. Balance in Paid-in Capital from Sale of Treasury Stock on December 31:
To calculate the balance in paid-in capital from the sale of treasury stock on December 31, we need to determine the net effect of the treasury stock transactions:
- Initial sale of 180,000 shares at $17 per share: $3,060,000 (credited to Common Stock)
- Sale of 90,000 reacquired shares at $20 per share: $1,800,000 (debited to Cash) and $1,530,000 (credited to Treasury Stock)
- Sale of 30,000 shares at $15 per share: $450,000 (credited to Common Stock)
Net effect on Common Stock: $3,060,000 - $450,000 = $2,610,000
Net effect on Treasury Stock: $1,530,000
Therefore, the balance in Paid-in Capital from Sale of Treasury Stock on December 31 is $1,530,000.
c. Reasons for purchasing treasury stock:
1. Market Support: Purchasing treasury stock can provide support to the stock price by reducing the supply of outstanding shares in the market.
2. Investment Opportunity: The company may view its stock as undervalued and purchasing treasury stock can be seen as an investment in the company's own shares.
3. Employee Stock Options: To have shares available for employee stock option plans or other equity-based compensation programs.
4. Corporate Restructuring: As part of a strategic restructuring or merger, the company may repurchase shares to adjust its capital structure.
5. Earnings Per Share (EPS) Enhancement: By reducing the number of outstanding shares, EPS can be increased, which may be favorable to shareholders.
6. Signal of Confidence: Repurchasing shares can signal confidence in the company's financial health and future prospects to investors.
You are a junior in high school and have always been fascinated with bridges. You think it would be great to build bridges for a living but have no idea that you should study engineering in college to accomplish this goal. You've decided that it's time to talk to someone who can help you plan for college and give you guidance and the information you need. Who should you talk to?
Answer:
school psychologist
The balance sheet identifies the productive resources (assets) that a firm uses to generate income, as well as the sources of funding from creditors (liabilities) and owners (shareholders' equity) that were used to buy the assets.A) TrueB) False
Answer:
A) True
Explanation:
The Balance Sheet is a snapshot of the financial situation of a company at the end of the accountable period. It shows which productive resources (assets) the company has for the development of its activities and how they are financed. Assets can be financed by external (Obligation with creditors – Liabilities) or internal sources (Issuing equity shares - Shareholders' equity). As every Asset must be financed either or both with Liabilities or Shareholders' equity, in the Balance Sheet, the accountable equation is represented.
Even though the nation faces political instability, the island of Frollik with its wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land in Frollik with the intent of building a park targeted toward families. The company wants to make a commitment to Frollik, including the hiring of several hundred local employees. They’re using a global marketing strategy called ____________.
Answer:
The correct answer is foreign direct investment.
Explanation:
Foreign Direct Investment (FDI) consists of the capital investment by a natural person or a legal entity (institutions and public companies, private companies, etc.) in a foreign country. In the country of destination, this capital inflow can be made through the creation of new production plants or the participation in companies already established to form a subsidiary of the investment company. According to the OECD, FDI aims to exercise long-term control over the acquired or investee company, and the criteria established to define it is that the property acquired by the parent company be at least 10% of the subsidiary.
Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or at other potential jobs. One potential job, at a caf�, will pay her $12 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $10 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $8.50 per hour for as many hours as she can work. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
To maximize her income, Pham should work 6 hours at the café, 5 hours at the garage, and 4 hours at the bookstore.
Explanation:To maximize her weekly income, Pham should take the jobs that pay the most per hour first. Given the constraints, she should first work at the café for $12 per hour for 6 hours, earning $72. She should then work at the garage for $10 per hour for 5 hours, earning $50. This uses up 11 of her available 15 hours, leaving her with 4 hours to work at the bookstore at $9 per hour, earning $36. Therefore, Pham should work 4 hours at the bookstore to maximize her weekly income.
Learn more about Optimal work hours here:https://brainly.com/question/30890022
#SPJ3
Which of the following funds would be most appropriate when accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
A. Investment trust fund.B. Enterprise fund.C. Internal service fund.D. Special revenue fund.
Answer:
B. Enterprise fund
Explanation:
Enterprise fund
It is a government fund , which is self - supported and which sells services and goods to the public in exchange of a fee .
For example ,
a power generating facility provides electricity to the local people in exchange of a fee .
Hence , from the data of the question , the appropriate answer is Enterprise fund .
Characterize the following actions of a firm as financing, investing, or operating activities: Scenario Operating Activity Investing Activity Financing Activity
__Sells a tract of land it has held for years
__Increases its use of trade credit from suppliers
__Improves profit margin and increases net income
__Issues new shares of preferred stock
__Tightens its credit policy with its customers
__Buys back shares of common stock
__Buys new equipment and machinery Issues new notes payable
Answer:
1. Sells a tract of land it has held for years - Investing Activity
2. Increases its use of trade credit from suppliers - Operating activity
3. Improves profit margin and increases net income - Operating activity
4. Issues new shares of preferred stock - Financing activity
5. Tightens its credit policy with its customers - Operating activity
6. Buys back shares of common stock - Financing activity
7. Buys new equipment and machinery - Investing Activity
8. Issues new notes payable - Financing activity
Final answer:
The actions of selling land, buying equipment, issuing stock, or issuing notes payable are classified as investing and financing activities, while improving profit margin, increasing use of trade credit, and tightening credit policy are operating or financing activities.
Explanation:
When classifying actions of a firm among financing activities, investing activities, and operating activities, we refer to the cash flows related to those actions as they appear on a company's cash flow statement.
Sells a tract of land it has held for years - This is an example of an investing activity as it typically involves the sale of a long-term asset.Increases its use of trade credit from suppliers - This action is related to financing activities because it involves changing the terms through which the firm finances its operations, i.e., by using more credit.Improves profit margin and increases net income - These are indications of operating activities since they directly relate to the firm's principal revenue-generating activities.Issues new shares of preferred stock - Issuing stock is clearly a financing activity, as it involves raising capital directly from investors.Tightens its credit policy with its customers - Tightening credit policy is related to operating activities, as it impacts the terms on which the firm conducts business with its customers.Buy backs shares of common stock - This is a financing activity, as it pertains to managing the firm's capital structure and returning capital to shareholders.Buy new equipment and machinery - Purchasing equipment is an investing activity, it involves the outlay of funds for a long-term asset.Issues new notes payable - This is a form of financing activity, as it involves raising capital through borrowing.An increase in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in:
income.
consumer preferences.
prices of other goods.
consumer expectations.
Answer:
consumer expectations.
Explanation:
There will be change in the consumer expectations , since , according to the question , the consumers are sure that the price of the gasoline will increase tomorrow , hence to save some amount of money , they will start to buy gasoline , and thereby the demand for gasoline would increase and they would expect more gasoline .
Hence , The correct answer according to the data of the question is - consumer expectations .
Suppose that the only café in town can sell five fish dinners per night at a price of $10 each. If this monopoly firm wants to sell six fish dinners, it must reduce the price to $9 each. When the business pursues this strategy to increase sales, the marginal revenue from the sixth dinner sold is:
a. $4.
b. $54.
c. $9.
d. $50.
Answer:
a.$4
Explanation:
initial price of fish dinner per piece was= $10
no. of fish dinner sold = 5
total initial revenue= 5*10= $50
new price of fish dinner = $9
and now six fish dinners are sold
new revenue= 6*9= $54
therefore the marginal revenue from the sixth dinner sold= 54-50= $4
hence option a is correct