A potential lender reviews fixed assets and current assets on a company's balance sheet for a long-term loan to assess collateral and liquidity.
Fixed assets, like property and equipment, can be used as collateral, providing security for the lender in case of default. They also indicate the company's long-term investment and cash flow potential. Current assets, such as cash and inventory, reflect short-term liquidity and the ability to meet obligations.
Equity financing, where owners bear risk, provides more cushion for lenders compared to debt financing, which increases the lender's risk. Lenders consider the company's debt-to-equity ratio, profitability, and cash flow to evaluate financial stability. Higher equity and lower debt-to-equity ratio signify better stability, reducing the lender's risk.
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The financial manager of JAC Cosmetics is considering opening a lockbox in Pittsburgh. Checks cleared through the lockbox will amount to $21,000 per day. The lockbox will make cash available to the company two days earlier than is currently the case. Suppose that the bank offers to run the lockbox for a $33,600 compensating balance, answer the following:
a-1. Calculate the additional available cash generated by the lock-box system. A-2. Is the lockbox worthwhile?
b. Suppose that the bank offers to run the lockbox for a fee of $0. 21 per check cleared instead of a compensating balance. Assume an interest rate of 5% per year. What must the average check size be for the fee alternative to be less costly? Use a 365-day year
In this way, JAC will be in an ideal situation tolerating the remunerating balance offer. Indeed the Lock box is beneficial. The average check size be $ 4.60
For break–even, let x equal the typical check size. The daily cost of the lock-box is as follows, with 21,000 checks written per day:
=(21,000/x) × 21%
The other option is the $33,600 compensating balance. The lost interest is the daily cost, which is equal to:
=(33,600 × 0.05)/365
These costs are equal if x = $4.60
Compensating balance:A borrower must keep a compensating balance in their bank account as a minimum deposit. Corporate loans, rather than individual loans, typically call for a compensating balance.
A borrower's agreement to keep a certain minimum amount in their bank account with a lender is known as a compensating balance. The reason for this equilibrium is to diminish the loaning cost for the moneylender, since the bank can put the money situated in the repaying ledger and keep some or the entirety of the returns.
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In the Management in Action case, if Congress forces Amtrak to become a nonprofit, the organization will have to go back to which step in planning process? Multiple Choice O operational planning O developing a mission O statement strategic planning O execution
Capital punishment (Execution), often known as the death penalty and judicial murder, is the state-sanctioned execution of a person for an actual or presumed crime after an authorized, rule-governed process to determine that the person violated norms that necessitate this punishment.
The sentence mandating that an offender be punished in such a manner is known as a death sentence, and the act of carrying out the punishment is known as an execution. A person on death row is a convict who has been sentenced to death and is currently awaiting execution.
Since human civilization began, most nations have executed criminals and dissidents. Without prison structures, deterring and incapacitating offenders was difficult before the 19th century. The breaking wheel, keelhauling, sawing, hanging, drawing, and quartering, burning at the stake, flaying, slow slicing, boiling alive, impalement, and gunshot were common torture tactics used in pre-modern executions.
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The right way of asking the question is:
In the Management in Action case, if Congress forces Amtrak to become a nonprofit, the organization will have to go back to which step in the planning process?
operational planning developing a mission statement strategic planning executionAn index is a listing of the names or titles used in a filing system.
a. True
b. False
The names or titles used in a file system are included in an index. It's accurate to say this.
Which filing method calls for an index?
Records are arranged by number in numerical filing systems. Because information must be retrieved from a file index, the system only allows indirect access.
What is a filing index?
With the help of an index, a user can enter a piece of information (such a person's name) and view all additional details about the relevant file, like the case number or date. For instance, case files are frequently organized numerically (1-100).
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I wanna see how quick ya'll answer. Tell me if your answer quickly only because of the points if not the points give me another reason.
Answer:
thanks for this
Explanation:
because the points <3
Answer:
Hey babe why you not answering? :(
Explanation:
cache manufacturing company is expected to pay a dividend of $3.6 in the upcoming year. dividends are expected to grow at 5% per year. the stock's current price is $64. using the constant-growth ddm, the market capitalization rate is
The constant-growth dividend discount model (DDM) is a popular method for estimating the intrinsic value of a stock based on its expected future dividend payments. In this case, we are given that the Cache manufacturing company is expected to pay a dividend of $3.6 in the upcoming year and that dividends are expected to grow at a rate of 5% per year.
Using the constant-growth DDM, we can calculate the market capitalization rate, which represents the expected return that investors require for holding the stock. To calculate the market capitalization rate, we can use the following formula: Market Capitalization Rate = (Expected Dividend / Current Stock Price) + Dividend Growth Rate Plugging in the given values, we get: Market Capitalization Rate = ($3.6 / $64) + 5% = 0.05625 or 5.625% Therefore, according to the constant-growth DDM, the market capitalization rate for the Cache manufacturing company is 5.625%. This means that investors expect to earn a return of 5.625% on their investment in the stock, based on the company's expected dividend payments and growth rate.
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Industries X and Y both have four-firm concentration ratios of 90 percent, but the Herfindahl index for X is 7,814, while that for Y is 8,206. These data suggest Multiple Choice greater market power in X than in Y. greater market power in Y than in X. O that X is more technologically progressive than Y. that price competition is stronger in Y than in X.
The given concentration ratios and Herfindahl index of Industries X and Y suggest greater market power in Y than in X.
The Herfindahl index is a market concentration metric that calculates the market concentration of a group of suppliers. It is the sum of the squares of the percentage market shares of all the firms that operate in a particular industry. It ranges from 0 to 10,000, with higher values indicating greater concentration.
A four-firm concentration ratio is a ratio that calculates the market share of the four largest firms in an industry. In other words, the percentage of total market share that is controlled by the four biggest firms is the four-firm concentration ratio (CR4).
The data provided for Industries X and Y suggests that both have a 90% four-firm concentration ratio. However, the Herfindahl index is 7,814 for Industry X and 8,206 for Industry Y.
A higher Herfindahl index indicates a greater concentration of market power among fewer companies. Therefore, the higher Herfindahl index of Industry Y suggests greater market power in Y than in X.
Therefore, the correct option is "greater market power in Y than in X."
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If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not? Yes, the payment of dividends indicates that a stock’s value has increased. No, the payment of dividends indicates that a company has earned profits. Yes, the payment of dividends indicates that a company’s assets have grown. No, the payment of dividends indicates that a company can repay investors.
Answer:
I'm pretty sure the answer would be B.
No, the payment of dividends indicates that a company has earned profits.
Explanation:
Explanation :p
Payment of dividends that the company has earned or gained profits and not the value appreciation of its tocks. So, option B is the correct answer.
Do dividends affect the stock value?Dividends are profits distributed by corporations to their stockholders. Dividend payments convey information about a company's prospects for the future and performance. Its willingness and ability to pay consistent dividends throughout time demonstrates its financial stability.
So, just because a corporation pays dividends on its stock doesn't mean the stock has increased in value.
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What term describes the attempt to create one ad that will simultaneously please all members of a company’s target market?
product mix
primary market research
mass marketing
endorsement
Product mix is an attempt to make one advertisement that will serve multiple purposes. Thus, the appropriate choice is (A).
What is a Product Mix?Product mix, sometimes referred to as product assortment or product portfolio, refers to the entire range of goods and/or services that a company provides. Product lines are linked things that customers frequently use together or perceive as being similar to one another, making up a product mix.
A company's product lines are referred to as its "width," sometimes known as "breadth." Ready-to-eat cereal, baked goods, crackers, and cookies, as well as frozen/natural/organic products, are just a few of Kellogg's product categories.
A company's product mix is measured in length, or the total number of goods. Think of a car manufacturer with two different automobile product lines, for instance (3-series and 5-series). There are three sorts of cars in each product line series. In this instance, the length of the product
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Keri is making doll clothes for a holiday craft show. the wholesale cost of the materials for one outfit is $9.38. if she sells an outfit for $15, what is the percent of markup? round to the nearest percent.
The percent of markup is calculated by dividing the selling price by the cost of the materials:
Markup % = (Selling Price / Cost of Materials) x 100
Rounded to the nearest percent, the markup is 60%.
The percent of markup for Keri's doll clothes can be calculated by using the formula:
Markup Percent = [(Selling Price - Wholesale Cost) / Wholesale Cost] × 100
First, we need to find the difference between the selling price and the wholesale cost:
$15 - $9.38 = $5.62
Next, we need to divide this difference by the wholesale cost:
$5.62 / $9.38 = 0.599
Finally, we need to multiply this number by 100 to get the percent of markup:
0.599 × 100 = 59.9%
Rounding to the nearest percent, the markup percent for Keri's doll clothes is 60%.
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why the pattern of employment in a country may change over time?(essay question)
Answer:It would most likely change overtime because technology is being advanced.
Explanation:
Question 1 of 10
Why can consumers have influence over politicians?
O A. Government agencies are required to address consumer
complaints.
B. Consumers are able to boycott politicians' re-election campaigns.
C. Corporations use profits from consumers to lobby the
government.
D. Politicians rely on the votes of consumers to keep them in office.
SUBMIT
Answer:
it's most likely B or D. but you need to double check
Answer:
D. Politicians rely on the votes of consumers to keep them in office.
Explanation: i took the test.
What is marginal revenue product examples?
The marginal revenue product (MRP), also known as the marginal value product, is the revenue generated by adding one unit of resource.
The marginal revenue product (MRP) is determined by multiplying the resource's marginal physical product (MPP) by the marginal revenue (MR) generated. The MRP assumes that other expenditures remain constant and assists in determining the optimal level of a resource.
MRP is based on marginal analysis, or how people make decisions on the edge. If a consumer buys a bottle of water for $1.50, it does not follow that the consumer values all bottles of water at that price.
Instead, it signifies that the consumer subjectively values an extra bottle of water more than $1.50 at the time of purchase. The marginal analysis considers costs and benefits incrementally rather than as a whole.
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The May 2024 revenue and cost information for Denver Outfitters, Inc. follows: (Click the icon to view the revenue and cost information.) contra expenses. Enter all other amounts as positive numbers.)
Overall, DR Outfitters management appears to have done a good job at controlling costs. The total manufacturing variances are favorable by $7,900.
Income statement is a nominal account that depicts the net profit earned or net loss incurred by a company during an accounting year. The difference between income and expense shows the net profit or loss. When the income is more than expense, it shows net profit and when expense surpass income, it shows net loss. The particulars related to the various balances of DR Outfitters are provided. It is required to determine the gross profit using the standard income statement(table).
Therefore, standard income statement of DR Outfitters shows a gross profit of $262,900. The cost of goods sold after considering various favorable and unfavorable manufacturing cost variances is reduced from the sales revenue to get the gross profit.
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--The complete question is, The May 2024 revenue and cost information for Denver Outfitters, Inc. follows: (Click the icon to view the revenue and cost information.) contra expenses. Enter all other amounts as positive numbers.)
Sales Revenue(not standard) $6000000
cost of goods sold(not standard) 345000
Direct materials cost variance 1200F
Direct materials efficiency variance 6500F
Direct labour cost variance 4000F
Direct labour efficiency variance 2000F
Variable overhead cost variance 3700F
Variable overhead efficiency variance 800F
Fixed overhead cost variance 1500F
Fixed overhead volume variance 8200F
Overall, DR Outfitters management appears to have done a ____ job at controlling costs. The total manufacturing variances are favorable by ______.
What is the process of analyzing financial data with ratios to compare a firm’s performance to competitors? 1. Benchmarking 2. Valuing 3. Evaluating 4. Audting
Audting is the process of analyzing financial data with ratios to compare a firm’s performance to competitors. A ratio analysis is a method of analysing financial statements or line items within financial statements of a company.
There are numerous ratios available, but some, such as the price-to-earnings ratio and the net profit margin, are more commonly used by investors and analysts. Operational efficiency, and profitability through the examination of its financial data statements, such as the balance sheet and income statement. Fundamental equity analysis is built on ratio analysis. Financial firm’s ratios can be calculated using information from financial statements like the balance sheet and income statement. Ratio analysis is divided into four categories: profitability, liquidity, solvency, and valuation.
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Sue is age 73 and has a great deal of difficulty living independantly as she suffers from severe rheumatoid arthritis. She is covered by a $400,000 life insurance policy, and her children are named as her beneficiaries. Because of her health, Sue decides to live in a nursing home, but she does not have enough income to pay her nursing home bills which are expected to total $42,000 per year. The insurance company offers disabled individuals the option of either a reduced settlement on their policies or an annuity. Given Sue's age and health she has the option of receiving $3,200 per month or a lump sum payment of $225,000. to date, Sue has paid $80,000 in premiums on the policy. A) How much income must Sue report if she chooses the lump sum settlement? B) How much income must Sue report if she elects the annuity? C) How much income would Sue have to report if her nursing home bills amounted to only $36,000 per year?
She must report taxable income of $125,000. If Sue chooses the annuity option, she must report taxable income of $38,400 per year. If Sue's nursing home bills amounted to only $36,000 per year.
A) If Sue chooses the lump sum settlement, she must report the excess of the settlement over her premiums paid as taxable income. Therefore, she must report $145,000 as taxable income ($225,000 - $80,000).
B) If Sue elects the annuity, she must determine the portion of each payment that is a return of her premium and the portion that is taxable income. If Sue's life expectancy is 8 years, the exclusion ratio is 66.9% (i.e., $80,000 premiums paid / $120,000 expected return). Therefore, each monthly payment of $3,200 will consist of $2,144 (66.9% of $3,200) return of premium and $1,056 ($3,200 - $2,144) taxable income. Sue must report $12,672 ($1,056 x 12) as taxable income each year.
C) If Sue's nursing home bills amounted to only $36,000 per year, her taxable income would be lower because the exclusion ratio would be higher. With nursing home bills of $36,000 per year, the exclusion ratio would be 77.8% (i.e., $80,000 premiums paid / $103,200 expected return). Therefore, each monthly payment of $3,200 will consist of $2,489 (77.8% of $3,200) return of premium and $711 ($3,200 - $2,489) taxable income. Sue must report $8,532 ($711 x 12) as taxable income each year.
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In 500 words, describe how your family is conserving, reusing, and recycling resources. Also describe what more your family might do to protect the environment.
Answer:
(Answers may vary.)
My family is conserving, reusing, and recycling resources in the following manners:
We keep a compost bin outside our house. We throw fruit peels and other natural wastes in the compost bin. These wastes decompose in the bin and turn into fertilizer eventually. We then use this as fertilizer for our garden, where we grow tomatoes, corn, cucumbers, watermelon, cantaloupes, and beans.
We use bicycles to travel wherever possible to prevent environmental pollution caused by the use of gasoline. We prefer to walk short distances. Walking helps our bodies exercise and helps save fuel too. When we take trips we usually take mass transit to save on gas. Our family carpools as often as possible to save on gas.
We believe in gifting memorable experiences to friends and family members on birthdays instead of articles such as toys or gadgets. Materials such as toys may deteriorate over time with repeated use, break, and add to wastes. However, experiences such as going hiking or visiting a museum remain with you for lifetime as pleasant memories.
We turn off the lights when not required or when nobody is present in a room. In the summertime, we keep the air conditioning at 79 degrees so that it is not overused. Whenever possible, we cool the house by opening the windows. We’ve planted trees around the house so that in the future, shade will be the primary source of cooling. In the winter, we keep the house cooler and dress warmly. Sometimes we have a wood fire to keep the house warm. We also turn computers and other appliances off when not in use.
We reuse the bottles containing fruit jams as containers. Whenever possible, we make our own jams and jellies. We also use the containers to hold small items such as nails, pushpins, and paper clips. We’ve converted some of these jars into piggybanks and also use them for crafts. My mother uses them as gifts sometimes by decorating them with ribbons and pretty fabric.
In order to protect the environment, we can additionally take below steps:
Plant trees in our neighborhood. Trees provide oxygen and improve the quality of the air. When the neighborhood has lots of trees, not only is the air quality improved, it provides shade to cool the homes. That way, air conditioning is not used as often.
Use carpooling to travel long distances such as to work or the store to control the use of automobiles. Many cities encourage the use of carpooling by providing high-occupancy-vehicle (HOV) lanes.
Grow herbs and vegetables in the backyard to eat fresh and healthy food as well as save energy on transportation. Transportation of food is a major cost and can lead to environmental harm. By growing our own food, we do our part in saving on transportation pollution.
Use recyclable materials for containers. By supporting companies that use recycled materials for packaging, we use our dollar vote to support the environmental efforts of these companies.
Explanation: Edementum
the price elasticity of demand depends on
Answer:
...price levels, the type of product or service, income levels, and the availability of any potential substitutes.
5. Which of the following is NOT a service?
hair cutting
sports magazine
computer repair
tax preparation
Compare the features of the classical economic model to the Keynesian economic model. How do these models influence the aggregate demand curve and the aggregate supply curve? Which model, in your opinion, benefits the economy in the long-run?
The classical economic model and the Keynesian economic model are two prominent schools of thought in economics that offer different perspectives on how the economy works and how government policies should be formulated.
Let's compare the features of these models and discuss their influence on the aggregate demand curve and the aggregate supply curve.
Classical Economic Model:
Market Mechanism: The classical model emphasizes the role of free markets in allocating resources efficiently. It assumes that markets are self-regulating and tend towards equilibrium.
Say's Law: It assumes that supply creates its own demand. In other words, the production of goods and services generates income, which, in turn, leads to spending and consumption.
Laissez-Faire Policy: The classical model suggests minimal government intervention in the economy. It believes that markets will naturally adjust to any imbalances and achieve full employment in the long run.
Long-Run Focus: It emphasizes the importance of long-run equilibrium and believes that the economy will self-correct over time.
Keynesian Economic Model:
Aggregate Demand: The Keynesian model places significant emphasis on aggregate demand, arguing that it is a key driver of economic activity. It suggests that fluctuations in aggregate demand can lead to periods of recession or inflation.
Role of Government: The Keynesian model advocates for active government intervention, especially during economic downturns. It recommends fiscal policy measures such as increased government spending or tax cuts to stimulate demand and boost economic activity.
Sticky Wages and Prices: It recognizes that wages and prices may not adjust immediately in response to changes in demand. This leads to the possibility of short-term unemployment or inflationary gaps.
Short-Run Focus: The Keynesian model emphasizes short-run stabilization policies to address fluctuations in output and employment.
In terms of their influence on the aggregate demand curve and the aggregate supply curve:
The classical model suggests that changes in aggregate demand have a limited impact on the overall level of output and employment in the long run. It views the aggregate supply curve as vertical, indicating that increases in aggregate demand will lead to higher prices rather than higher output.
The Keynesian model argues that changes in aggregate demand can have a significant impact on output and employment, particularly in the short run. It views the aggregate supply curve as upward-sloping, suggesting that increases in aggregate demand can lead to higher output without a substantial increase in prices.
Regarding which model benefits the economy in the long run, opinions may vary among economists. Classical economists argue that a free-market system with minimal government intervention promotes long-run economic growth and efficiency. Keynesian economists, on the other hand, emphasize the role of government policies in stabilizing the economy and reducing economic fluctuations.
In practice, a blend of both models is often employed by policymakers. During periods of stable economic growth, the classical model's focus on market mechanisms and long-run equilibrium may be more applicable. However, during recessions or economic downturns, Keynesian policies such as fiscal stimulus can be used to mitigate the negative impacts and stimulate economic activity.
Ultimately, the choice between the two models depends on the specific circumstances of an economy and the prevailing economic conditions. Policymakers need to consider a range of factors, including the state of the economy, the causes of any imbalances, and the potential effectiveness of different policy tools, to determine the most suitable approach.
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Which journal entry would be made by an accountant for a business for a $1,000 purchase of inventory on 1-August?
A. Inventory Cr 1,000
B. Inventory Dr 1,000
C. Cash Dr 1,000
D. Cash Cr 1,000
Journal entry would be made by an accountant for a business for a $1,000 purchase of inventory on 1-August Inventory Dr 1,000. Option B
What is a journal entry?Generally, The act of maintaining or creating records of any transactions, whether economic or non-commercial in nature, is referred to as an entry in a journal.
An accounting journal is a record kept by an organization that details the transactions that have taken place and display the debit and credit balances. The entry in the journal may include multiple recordings, each of which may be either a debit or a credit depending on the circumstance.
Each entry in the journal provides information that is pertinent to a single transaction made by a company.
This information includes the date, the amount that will be credited and debited, a short description of the transaction, and the accounts that will be impacted.
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write short notes by Napier bone
Answer:
Napier's bones is a manually-operated calculating device created by John Napier of Merchiston, Scotland for the calculation of products and quotients of numbers. The method was based on lattice multiplication, and also called 'rabdology', a word invented by Napier. Napier published his version in 1617.
The worksheet is a useful step in preparing adjusting entries and the unadjusted trial balance.
true/ false
The assertion is true. The worksheet is a helpful device in getting ready changing passages and the unadjusted preliminary equilibrium.
It arranges and sum up monetary data, works with the ID of vital changes, and guarantees the exactness of the budget reports before they are finished. The worksheet ordinarily incorporates segments for the unadjusted preliminary equilibrium, changes, changed preliminary equilibrium, pay explanation, and accounting report.
The worksheet is a device utilized in bookkeeping to aid the readiness of changing sections and the unadjusted preliminary equilibrium. It fills in as a mediator step before the finish of budget summaries.
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Which of the following statements about the impact of scarcity in every economic system is correct?
A )It imposes limitations not only on households, businesses, and governments, but on whole nations
B)It imposes limitations primarily on local and state governments as opposed to the national government, which is typically unaffected
C)Households rarely experience the effects of scarcity, which primarily affects business and government affairs
D)Businesses benefit from scarcity, which allows them to expand the reach of their operations, while scarcity causes households to suffer
Answer:
A
Explanation:
Which of the following is not a reason that the subject line should never be
left blank?
• A. The receiver may be
confused and decide to delay opening it.
•
B. The receiver may think the message iS spam.
C. The email will not be transmitted without that information.
D. The receiver may not consider the message important.
Answer: C. The email will not be transmitted without that information is not a reason that the subject line should never be left blank. The email can be transmitted without a subject line, it just may be less likely to be opened or considered important by the receiver.
Explanation:
Answer:
C. The email will not be transmitted without that information.
A subject line is important in an email because it gives the receiver an idea of what the email is about and whether or not it is important or relevant to them. Leaving the subject line blank can cause confusion, delay the receiver opening the email or even mark it as spam, and make the receiver not consider the message important. But an email will be transmitted without a subject line, it's just that the receiver may not understand the content of the email.
a feature of a perfectly competitive market is [a.] firms as price setters [b.] a differentiated product [c.] each firm faces a perfectly elastic demand curve. [d.] barriers to entry
The correct answer is [c.] Each firm faces a perfectly elastic demand curve. In a perfectly competitive market, there are several distinguishing features. One of them is that each firm in the market faces a perfectly elastic demand curve.
This means that the firm is a price taker and has no control over the market price. The firm must accept the prevailing market price for its product and adjust its output accordingly. If the firm tries to charge a higher price, consumers will switch to alternative suppliers offering the same product at a lower price. The other options mentioned: [a.] Firms as price setters: In a perfectly competitive market, firms are not price setters. They are price takers. [b.] A differentiated product: In a perfectly competitive market, products are homogeneous or identical, not differentiated. [d.] Barriers to entry: In a perfectly competitive market, there are no significant barriers to entry. New firms can easily enter the market and compete with existing firms.
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Which of the following is a true statement regarding operating costs:
They are fixed expenses.
They are not directly related to production.
They occur once or twice a year.
Only some businesses have them.
Answer:
They are not directly related to production.
Explanation:
Operating expenses are the costs incurred in running the affairs of a business on a day-to-day basis. They refer to the expenses associated with the maintenance and administration of a business. Operating expenses are also operational costs and include rent, machinery, payroll services, utilities, uniforms, and office supplies. operating cost also covers overhead expenses as well as the cost of goods sold
Match each business model with the advantage it brings.
Answer:
1. Subscription.
2. Bait and Hook.
3. Cutting out the Middleman.
Explanation:
Some of the commonly used business models across the world include the following;
1. Subscription: steady revenue and predictable profits. It is a business model which typically involves customers paying a recurring fee or price (revenue) for the use of a particular product or service. These customers are usually charged either on a monthly or annual basis. An example is the subscription for paid cable tv by various customers.
2. Bait and Hook: attractive prices for basic product. It is also referred to as the razor and blade business model. Bait and Hook typically involves selling a product at a very low price so as to gain the attention of the buyer and selling a complementary product (refill) to the same buyer at a very high price. An example is a mobile phone (bait) and airtime plus data (hook).
3. Cutting out the Middleman: reduction in transaction costs and processing time. It typically involves the elimination of an intermediary (middleman) in the supply of goods and services to the end users or customers.
An example is the business to consumer (B2C) company such as Walmart, Uber, etc.
You can compare the debts you
have paid off for your business in
the past year by looking at the
A. Balance Sheet
B Accounts Payable Sheet
C. Gross Income Sheet
Answer:
a). balance sheet
Explanation:
A customer purchases $100,000 worth of merchandise from the ABC company on January 1st with terms of 5/10 EOM, net 60. If the customer pays the bill within the discount period the ABC company will receive payment of:
if the customer pays the bill within the discount period, ABC Company will receive payment of $95,000.
The amount of payment that ABC Company would receive if the customer pays the bill within the discount period of 5/10 EOM, net 60, is $95,000. A discount period of 5/10 EOM, net 60 means that the customer can get a discount of 5% on the invoice amount if the payment is made within ten days from the end of the month (EOM) in which the invoice was issued. If the customer fails to make the payment within the discount period, they will be required to make the full payment of $100,000 within a period of 60 days from the date of the invoice.
Therefore, if the customer makes the payment within ten days from the end of the month (EOM) in which the invoice was issued, the amount of payment will be calculated as follows:
Invoice amount = $100,000
Discount rate = 5%
Discount amount = 5% x $100,000 = $5,000
Amount payable within discount period = Invoice amount - Discount amount
= $100,000 - $5,000 = $95,000.
Hence, if the customer pays the bill within the discount period, ABC Company will receive payment of $95,000.
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General Product Inc. distributed 100 million coupons in 2021. The coupons are redeemable for 30 cents each. General anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2022. There were 45 million coupons redeemed in 2021 and 30 million redeemed in 2022. General recognizes coupon promotion expense in the period coupons are issued. What was General's coupon promotion expense in 2021? A. $30.0 million. B. $21.0 million. C. $13.5 million. D. $7.5 million.
General's coupon promotion expense in 2021 is $21.0 million (option b).
general's coupon promotion expense in 2021 can be calculated by multiplying the number of coupons distributed in 2021 (100 million) by the anticipated redemption rate (70%) and the redemption value per coupon (30 cents).
coupon promotion expense in 2021 = number of coupons distributed in 2021 * anticipated redemption rate * redemption value per coupon
= 100 million * 70% * $0.30
= $21.0 million the coupon promotion expense is recognized in the period when the coupons are issued. in this case, general distributed 100 million coupons in 2021. the anticipated redemption rate is 70%, meaning general expects 70% of the distributed coupons to be redeemed. the redemption value per coupon is given as 30 cents. by multiplying these values together, we can calculate the coupon promotion expense in 2021, which amounts to $21.0 million. this represents the cost incurred by general for the coupons that were distributed and redeemed during that specific period.
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