Answer:
monopoly firms will operate at a loss because P < AC
Explanation:
A monopoly is when there is only one firm operating in an industry.
A natural monopoly exists either because of high start-up costs or high economies of scale.
A natural monopoly has a decreasing average cost for some output. When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses.
Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock (g) Depreciation expense (c) Increase in interest receivable (h) Payment of dividends (d) Purchase of land (i) Decrease in utilities payable (e) Decrease in accounts payable (j) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows
Answer:
(a) Decrease in accounts receivable
(g) Depreciation expense
Explanation:
Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted
Based on the above explanation, the items which are to be added in the operating activities are
(a) Decrease in account receivable
(g) depreciation expense
Out of all Other items would be deducted and all other items belong to investing and financing activity
Airbase is a consumer electronics company known for its affordable mobile devices that follows a cost-leadership strategy. In this scenario, Airbase should ideally compare its strategic position with:__________.
1. a company that sells small kitchen appliances at affordable prices.
2. an online company that sells customized electronics accessories.
3. a consumer electronics company that sells high-end devices.
4. a consumer electronics company popular among price-conscious customers.
Answer: 4. a consumer electronics company popular among price-conscious customers.
Explanation: Companies who thread a cost-leadership strategy or path could be said to be 'price-centric', that is gives price huge cognizance and will strive to be a market or industry leader when it comes to giving best and most affordable prices on products.
Thus, since Airbase follows a cost leadership strategy and also popular among consumers for its affordable devices, it should also weigh or compare it's strategy to other consumer electronics company which is popular among consumers which gives cognizance to price of products they purchase.
Refer to Scenario 16.2. The makers of Whizz considered a new promotional method for their product. A small box of Whizz was placed in the mailbox of college students as they came on campus in the fall. Along with the Whizz, the students received a coupon for $1.00 off their next purchase. They could receive another coupon for $3.00 off if they went online and emailed five friends at another college, telling them about Whizz. The friends could then go to a website and print a coupon for $2.00 off their next purchase. The sample boxes given to the college students are an example of ____, while the emails to the five friends are an example of ____.
Answer: Sales promotion ; viral marketing
Explanation: Sales promotions may be explained as technique used by businesses to appease and lure their target market into buying and using their product through the use of appealing incentives such as cost or slash sales, free coupons or discount on purchase and various promotions which are normally not attached to buying the product. Viral marketing in the other hand simply employs the use of internet technology such as mail and social media in the spread of a business campaign and information. It is termed viral marketing as information dissemination can be so rapid when done via this channel.
Managers at the Blue Dragon Inc., an international company with operations in China and the United States, are often heard complaining about the difficulties in achieving synergy and cooperation between the employees of both the countries. After extensive research it was concluded that the cultural differences between these countries, which resulted in different work-related values, caused the lack of cooperation. In order to effectively tackle this problem, Blue Dragon Inc. should
Answer:
Explanation:
In order to effectively tackle this problem, Blue Dragon Inc. should vary its management processes and practices to account for these differences. By varying these processes and practices they are applying the best of both cultures into their company, thus allowing the companies in each country to better understand how the other one functions. This will drastically increase communication and cooperation between these two international company's.
Suppose you are in charge of establishing economic policy for the small island country.
Which of the following policies would lead to greater productivity in the fishing industry.
A. Imposing restrictions on foreign ownership of domestic capital.
B. Subsidizing research and development into new fishing technologies.
C. Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts.
D. Sharply increase the interest rate on student loans to people pursuing advanced degrees in fishing.
Answer:
Option B, Subsidizing research and development into new fishing technologies, is the right answer.
Explanation:
Option B will be the right policy to increase the greater productivity in the fishing industry because if the government encourages the research and development then people will generate new technology to catch the fishes. Thus, new technology will increase the number of fishing. As a result, productivity will be increased in the fishing industry.
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $32,500 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:________.
A) Debit Estimated Bonus Payable $32,500; credit Cash $32,500.
B) Debit Employee Bonus Expense $32,500; credit Bonus Payable $32,500.
C) No entry since the bonuses are not paid until January.
D) Debit Employee Bonus Expense $32,500; credit Prepaid Employee Bonus $32,500.
E) Debit Unearned Bonuses $32,500; credit Bonus Payable $32,500.
Answer:
Springfield Company
The unpaid Employee Bonuses will have a journal entry as follows:
B) Debit Employee Bonus Expense $32,500; credit Bonus Payable $32,500.
Explanation:
Springfield Company had already incurred the bonus for the accounting period. It must be recognized as an expense in the year in accordance with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses must be recognized not on cash basis but on accrual basis and that any expense relating to an accounting period must be matched to revenue of that period.
Assuming that the physical output (i.e., the actual quantity of all final goods and services) of all final goods and services remains constant, if the general price level in the economy triples, so does nominal output.
a) true
b) false
Answer:
a) true
Explanation:
A rise in the general price level is called inflation and it affects the nominal value of the company's output. E.g. you sell pants and last year they sold at $10 and now since inflation rate is 10%, they sell at $11. But inflation only affects nominal values, it doesn't affect real values which are calculated using a base price of a certain year X, times the quantity sold. Following the example, your real output would not be $11 per pair of pants, instead it would still remain at $10 since the inflation is discounted.
Which of the following statements is true about the constant growth model?
A- the constant growth model can be used if a stock's expected constant growth rate is more than its required return
B- The constant growth model can be used if a stock's expected constant growth rateis less than its required return
Answer: The constant growth model can be used if a stock's expected constant growth rate is less than its required return.
Explanation:
The Constant Growth Model is a stock valuation method.
It assumes that a company's dividends are increasing at a constant growth rate indefinitely.
Formula: Current price = (Next dividend the company is to pay) ÷ (required rate of return for the company - expected growth rate in the dividend.
When expected constant < required return, then the constant growth model can be used.
Hence, the statement is true about the constant growth model :
The constant growth model can be used if a stock's expected constant growth rate is less than its required return.
If a stock's predicted constant growth rate is smaller than its needed return, the constant growth model can be utilized.
So, option B is correct.
Define constant growth model.The constant growth model is used to calculate a stock's inherent value depending on a succession of dividends that increase at a constant pace in the future.
Dividends per share, the growth rate of dividends per share, as well as the rate of return are the three inputs inside the constant growth model.
If a stock's predicted constant growth rate is smaller than its needed return, the constant growth model can be utilized.
So, option B is correct.
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Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual direct deposit of payroll for the first week of January
Answer:
$5,708
Explanation:
Computation of the actual direct deposit of payroll for the first week of January
The First step is to find the total salary expenses
Total salary expenses= 10 employees × 40 hours × $20
Total salary expenses= $8,000
Second step is to calculate the actual direct deposit of payroll
Total salary expense $8,000
Federal income tax rate ($1,200)
($8,000*15%)
State income tax rate ($480)
($8,000*6%)
FICA tax rate ($612)
($8,000*7.65%)
Actual direct deposit $5,708
Therefore the actual direct deposit of payroll for the first week of January will be $5,708
Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. However, the company is also employing a segmentation strategy to separate customers within that focus. The strategy offers items at an entry-level price point as well as couture items for the richest customers. Which market segmentation strategy is Burberry pursuing
Answer:
Burberry is pursuing an umbrella branding strategy
Explanation:
Based on the scenario being described it seems that Burberry is pursuing an umbrella branding strategy. This type of strategy focuses on having a single brand name for the sale of two or more related products with different specs. Which Burberry is doing by having separate category of items made specifically for different target populations, such as entry-level price point items and couture items, even though they are all under the Burberry brand.
According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, all of the following practices are considered unethical for an agent EXCEPT A) selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority B) selling 3,000 shares of ABC at a price the agent determines is the best the client can get, without oral or written discretionary authority C) determining the quantity of a specific security to purchase once the client has designated that security and the action to be taken D) receiving written discretionary authority from a client within 10 business days of first executing a discretionary trade with oral authority from the client
Answer: A. selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority
Explanation:
According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, all of the following practices that are given in the question are unethical for an agent except selling 3,000 shares of ABC as directed by a client at a price that the agent determines, without oral or written discretionary authority.
It should be noted that it is ethical for an agent to choose the price and the time of a trade so far the client has determined the amount, asset, and the action.
Which of the following was the result in Larry S. Lawrence v. Bainbridge Apartments, the case in the text in which the window washer argued that he was entitled to recover against the building owner for his injuries in a fall?
A. The window washer was entitled to workers' compensation as an employee.
B. The window washer was entitled to a recovery in tort based on the inherently dangerous activity at issue and the defendant's failure to take sufficient precautions.
C. The window washer was not entitled to recover because he took insufficient precautions for his own safety.
D. The window washer was entitled to no recovery based on his status as an independent contractor. p. 760
Background image
Answer:
D. The window washer was entitled to no recovery based on his status as an independent contractor.
Explanation:
The reason is that the employer is liable to have all safety measures in place to safeguard the employee from any type of injury at work. If despite all these safety measures, the employee gets injured then he is entitled to workers' compensation.
However, the employer is not liable to compensate independent contractors for accidents as the duty of care is not upon the employer in the case of independent contractors which means that the independent workers are obliged to take all necessary precautions to avoid any injury because it will not be compensated by the employer. Thus, the employer is not liable to compensate independent contractors and option D is correct.
Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
Answer:
The decrease in the effective price received by sellers is between $0.51 and $1.
Explanation:
Given the demand for picture = Inelastic
The supply of picture frames = highly elastic
Levied tax on picutre frames = $1
It is given that the demand for the frames is highly inelastic therefore the response of the buyer will be less. That means the proportionate change in demand will be lower than the proportionate change in the price of a commodity. Thus, the answer will be between $0.50 and $1.
Suppose the board of Nathan Corporation decided to do the share repurchase in problem 1-part b, but you, as an investor, would have preferred to receive a dividend payment. How can you leave yourself in the same position as if the board has elected to make the dividend payment instead
Answer:
If we sell 0.5 / 15 of one share we will receive $0.50 and the remaining shares will worth $14.50. This will be the same position as if the firm had paid a dividend.
Explanation:
Nathan Corporation is deciding to whether to repurchase shares. It is a decision made by company and its management to boost value of its stock. If the board makes a decision to make dividend payment then we will receive $0.50 per share. The share price total will be $14.50 which is same whether we receive dividend or not.
What is the single most important factor in determining the success or failure
of a project?
O A. Communication
B. Schedule
C. Budget
D. Risk
SUBMT
Answer:
Answer Choice: A. Communication
Explanation:
Communication is the single most important factor in determining the success or failure of a project because the better you explain the project the higher your grade will be so, that will result in your grade being a A or a B so, that will cause you to pass, and the worst you explain the project the lower your grade will be so, that will result in your grade being a C or D or F (or an E depending on how your school grades) so, that will cause you to fail.
Answer:
here
Explanation:
Zoe is a manager at a large company engaged in the acquisition of a smaller company. The smaller company has operated at a loss for the last three years under three different managers, but Zoe is convinced that she can turn the company around despite the evidence to the contrary. Zoe is engaging in ______.
Answer:
managerial hubris
Explanation:
From the scenario that is being described, it can be said that Zoe is engaging in managerial hubris. This term refers to the unrealistic belief help by a manager that they have the ability to manage an asset of a target firm far more efficiently than that firm's current or previous management, without any actual proof or planning. This is exactly what Zoe seems to be doing by stating that she can make the smaller company profitable even though three previous managers failed to do so.
Jerome says that he will spend exactly $25 (think sales/revenue) each month on new apps for his mobile device, regardless of the price of apps. Jerome’s demand for apps is a. Perfectly elastic. b. Unit elastic. c. Perfectly inelastic. d. Somewhat inelastic, but not perfectly inelastic.
Answer:
Option B, unit elastic.
Explanation:
The option “b” is correct because as per the expenditure method to calculate the elasticity of demand when the total expenditure (TE) remains the same regardless of the increase or decrease in the price or quantity then the elasticity is equal to one. Thus when elasticity is equal to one this is called the unit elastic demand. thus, option b is right.
TQK, LLC, provides consulting services and was formed on 1/31/X5. Aaron and ABC, Inc., each hold a 50 percent capital and profits interest in TQK. If TQK averaged $27,000,000 in annual gross receipts over the last three years, what accounting method can TQK use for X9
Answer:
Accrual method
Explanation:
As the average annual growth receipts is $27,000,000 which is greater than the $25,000,000 this amount reflects an exception due to which it cannot be applied for cash
Also the accrual method is also selected because it helps while subtracting the expenses instead of cash basis plus it also provides an accurate amount as compared with other methods. And, there is no need to maintain separate books for the purpose of tax
down the net income from the peak tax bracket.
The exchange rate is: the price of one nation's currency in terms of the currency of another nation. the amount households will spend on imports. the amount of foreign capital a nation receives when there is a trade surplus. the amount charged by bankers for loanable funds
Answer: the price of one nation's currency in terms of the currency of another nation.
Explanation: The rate of exchange can simply be explained as the worth or value of a country's currency in terms of the currency of another country. It gives an aggregate amount of the value of currency held by a certain person or spent in a particular country in terms of the currency of choice in another country. The exchange rate of currencies is usually determined by the market forces of demand and supply even though some aren't. For example, the rate at which one can convert a certain amount of British pounds to it's equivalent amount in U.S dollar is the exchange rate of British pounds to U.S dollars.
On january 1, ace electronics bought a new cash register for $2,500. Ace plans to use the cash register for 4 years and then sell is for $200. If Ace uses straight-line depreciation expense for the 1st year ended December 31 equals________
Answer:
Depreciation expense = $575
Explanation:
According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.
Annual depreciation = (Cost - Scrap Value)/ Number of years
Cost of asset = 2500
Scrap value - 200
Estimated useful life = 4
Annual depreciation = (2500 - 200)/4 = 575
Depreciation expense = $575
Even when economic indicators show that the economy is down, small businesses often thrive. Think of a small business in your community that would do well, even if people did not have a lot of extra money to spend, and explain the advantages it has over larger businesses.
Answer:
A drug store is a type of business that is likely to do well even in an economic recession.
This is because drug stores sell an essential good, that often has a high price, and that is needed by many people, specially those who suffer from chronic diseases.
In other words, people will likely reduce their consumption of many other goods before reducing their consumption of prescription drugs.
How does a price war affect customers?
Answer:
no body will buy it
Explanation:
u increase and decrease the price so much that no body will know the price
For consumers, lower prices mean better deals. Also, consumers can benefit from additional products and services offered during a price war. For example, if car companies are engaged in a price war, consumers might be able to score a bargain price for a high-end model car that otherwise would have been too expensive
Aspen, Inc. developed a new horse transport device and incurred research and development costs of $250,000. Rather than continue with their own research, Aspen decided to purchase a patent for a similar design from Vail, Inc. for $350,000. What are the total assets and expenses for these developments
Answer:
Total assets= $350,000
Total expenses= $250,000
Explanation:
Aspen incorporation developed a new horse transport device
During the period of the research and development of this transport device a lot of costs were incurred
Expenses can be described as the amount of money that is spent by a company inorder to generate profit
In the scenario described above, Aspen incorporation incurred $250,000 during the period of the transport device development
Hence the total amount of expenses is $250,000
Patent can be described as a type of intangible assets that, although this type of assets is a bit hard to estimate it's value, it is still grouped as an asset.
It is a full right that is given to an organisation, it gives them complete control and access to manufacture or produce a particular product for a long time.
In the scenario described above, Aspen purchased an identical design from Vail incorporation for $350,000
Hence the total assets is $350,000
Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. Her real estate taxes total $1,440 per year, and insurance costs $900 per year. She estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities 0.83 points 0142:40 What monthly rent must she charge for each apartment to break even? (Round intermediate calculations and answer to the nearest whole number.
Answer:
$651
Explanation:
For computation of Break-even monthly rent per apartment first we need to find out the monthly rent which is shown below:-
Monthly costs = Mortgage payment + Real estate taxes + Insurance costs + Maintenance costs
= $940 + ($1,440 ÷ 12) + ($900 ÷ 12) + (2 × ($1,000 ÷ 12)
= $940 + $120 + $75 + $167
= $1,302
Break-even monthly rent per apartment = Monthly costs ÷ 2
= $1,302 ÷ 2
= $651
Therefore we have applied the above formula.
We ignored the income tax as it is not relevant also it is tax deductible expense
Gary Sirota sees the proposed Bajagua Project as a win-win scenario for the public due to the larger treatment capacity of the proposed plant and the lower cost per gallon. How might Serge Dedina respond
Answer:
the private sector should never build a plant, regardless of benefits, because water is a public resource that needs public oversight
Explanation:
The win-win situation refers to the situation in which each one is happy as a result that arrives is best and beneficial for the company
Since in the question, it is mentioned that there is a win-win scenario as there is a larger treatment for the public at a lower cost per gallon
Therefore by this, the private sector should never develop that plant i.e water as it is a resource that is consumed by the public irrespective of their benefits
The likelihood of a risk event occurring during the implementation of a project goes up as the project progresses. The cost impact of these risk events also goes up as the project progresses.
a. True
b. False
Answer: True
Explanation:
Projects are carried out with the consideration that risk would definitely occur, and during the analysing phase of any project all risk that would evolve are carefully studied and proactive solutions are provided. When starting projects there is definitely a high risk due to the energy of how the work would go but careful implementation helps curb the situation.
Suppose you are looking at the 2006 results of how the Echo generation classified specified items as either luxuries or necessities. Do you expect the results to reflect how the Echo generation would classify items in 2020? Explain. No, many luxury brands will no longer exist in 2020, and will thus be unavailable for purchase. Newer luxury brands will dominate the lists. Yes, people's ideas of luxuries or necessities rarely change. No, the generation will have aged by 14 years and their perception of items as necessities or luxuries might well have changed by then. Yes, though the generation will have aged by 14 years, their perception of items as necessities or luxuries will not have changed by then. Yes, the costs of luxuries or necessities doesn't change that much with time, so they would still be considered luxuries or necessities in 2020.
Answer:
No, the generation will have aged by 14 years and their perception of items as necessities or luxuries might well have changed by then.
Explanation:
In this the individual perception important. That means if the person considered the necessity so it would not be the necessity after the age of 14 years and if the person considered the luxury so the necessity would be considered for the same person after the age of 14 years
So the necessity and the luxury would be changed as per the perception
Therefore the answer is no.
At midyear, Barbara, the manager of a store, realizes that the new outlet mall with 300 stores down the street is taking much of the sales away from her store, so she will need to revise the sales goals of her sales associates. Barbara is in what stage of the MBO process
Answer: Stage four
Explanation:
MBO Stage four which is the performance evaluation stage. By reavluating the sales goals of her associates Barbra is in the performance evaluation stage of MBO better known as stage four. The performance evaluation review is usually carried out by the participating manager in this case which happens to be Barbra, it is used to check for performance related informations.
The increase in Hollywood revenues outside North America reflects which business trend? Multiple Choice strategic alliance globalization cost reduction cultural distance local responsiveness
Answer:
globalization
Explanation:
Hollywood has become a global business for quite some time, being by far the most important and lucrative cinema business in the world.
Hollywood producers dominate the world markets with blockbusters that make billions of dollars every year.
Recently, the growth of the Chinese market has represented a huge new market for Hollywood producers.
The increase in Hollywood revenues outside North America reflects globalization.
What is globalization?It is the process where the people and the products should be moved easily across the borders. It is an economic concept where the market should be integrated, also there should be trade and investment that contain few barriers so that the flow of the products could be less. Also, the Hollywood should be the global business that represent the lucrative cinema business.
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The base year in the consumer price index (CPI) is:_________.
a) established by law.
b) given a value of zero.
c) a year chosen as a reference for prices in all other years.
d) always the first year in the current decade.
Answer:
C. a year chosen as a reference for prices in all other years.
Explanation:
Base year in the consumer price index (CPI) is a year chosen as a reference for prices in all other years.
Consumer Price Index (CPI) is a measure that is used to determine the weighted average of prices of a quantity of consumer goods and services.
Changes in the consumer price index helps to determine price changes associated with the cost of living. The consumer price index is one of the most frequently used statistics for identifying periods of inflation or deflation in an economy.
The formula used to calculate consumer price index for a product
= cost of purchasing the product in the given year ÷ cost of purchasing the product in the base year ×100
The base year or period refers to reference point in time iseda for comparison with other years or periods. It is used to measure financial and economic data.
period is a point in time used as a reference point for comparison with other periods. It is generally used as a benchmark for measuring financial or economic data.