Answer: True
Explanation:
Translation exposure is also referred to as translation risk and this is when there will be a change in the value of the equities, assets, income or liabilities of a company due to the changes in the exchange rate. This typically happens when a portion of the
equities, assets, income or liabilities, of the company is denominated in foreign currency.
Since Thornton's revenues are denominated solely in U.S. dollars, therefore, Thornton Corporation does not have translation exposure.
State one risk and one benefit of being a stockholder.
Answer:
risk : Stockholders aren't guaranteed a return on there investment.
benefit: you can make money on the stock market sometimes at huge rates of growth
Gerhan Company's flexible budget for the units manufactured in May shows $15,640 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company used 5,000 DLHs and incurred $16,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead. What is the factory overhead efficiency variance (to the nearest whole dollar) for Gerhan Company in May, under the assumption that the company uses a two-variance breakdown (decomposition) of the total overhead variance
Answer:
See below
Explanation:
Given the above information,
Budgeted overhead at 90% capacity = 6,120 × 3 = $18,360
Budgeted overhead at 70% capacity = $15,640
DLH at 70% capacity = 6,120/90% × 70% = 4,760 hours
Variable overhead rate = ($18,360 - $15,640) / (6,120 - 4,760) = $2 per DLH
Actual hours in May = 5,000 DLH
Variable overhead efficiency variance =
(4,750 - 5,000) × $2 = $480 unfavorable
The Federal Reserve has the power to implement and manage which type of
policy?
A. Fiscal policy
B. Budget policy
C. Debt policy
O D. Monetary policy
D. Monetary policy
Federal reserve controls through public spending i.e buying bonds to stimulate the economy
asey transfers property with a tax basis of $2,640 and a fair market value of $7,000 to a corporation in exchange for stock with a fair market value of $5,100 and $835 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,065 on the property transferred. Casey also incurred selling expenses of $547. What is the amount realized by Casey in the exchange
Answer:
Amount realized $6,453
Explanation:
The computation of the amount realized by Casey in the exchange is shown below:
Fair market value of the stock received $5,100
add: cash in transaction that qualifies for deferral under section 351 $835
Add: assumed mortgage $1,065
Less: selling expense -$547
Amount realized $6,453
Listed below are sources of law and legal situations. For each of the situations, indicate the letter corresponding to the law tha applies.
SOURCES OF LAW
1. Common law
2. The Securities Act of 1933
3. The Securities Exchange Act of 1934
Legal Situations
A. Form S-1 includes material misstatements of the audited financial statements.
B. The client files a lawsuit against the CPAs for negligence in the performance of tax services.
C. A stockholder sustains a loss when he purchases 100 shares of stock in a public company (issuer) from another stockholder in reliance upon audited financial statements included in Form 10-K.
D. Compiled financial statements of a nonpublic company are discovered to include material misstatements.
E. A quarterly statement (10-Q) of a client is materially mis-stated.
F. A bank loses money that it loaned to an issuer in reliance upon financial statements filed with the SEC.
G. An initial purchaser of bonds of an issuer sustains a loss.
H. A CPA is criminally prosecuted for willingly allowing misstatements in a client's financial statements contained in a registration statement.
I. The initial purchaser of common stock of an issuer sustains a loss.
J. Accounting related consulting services resulted in a system that misstated income of a nonpublic company.
Answer:
A. The Securities Act of 1933
B. Common Law.
C. The Securities Exchange Act of 1934.
D. Common Law.
E. The Securities Exchange Act of 1934
F. Common Law
G. The Securities Act of 1933
H. The Securities Act of 1933
I. The Securities Act of 1933
J. Common Law
When the Federal reserve uses contractionary monetary policy to reduce inflation, it A. sells treasury securities increasing interest rates, leading to a stronger dollar that lowers net exports in an open economy. B. buys treasury securities increasing interest rates, leading to a weaker dollar that increases net exports in an open economy. C. buys treasury securities decreasing interest rates, leading to a weaker dollar that lowers consumption of durables in a closed economy. D. sells treasury securities decreasing interest rates, leading to a stronger dollar that lowers domestic investment in a closed economy.
Answer:
A. sells treasury securities increasing interest rates, leading to a stronger dollar that lowers net exports in an open economy.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Generally, the government of a particular country could use a contractionary policy to slow down the economy when inflation is high and gross domestic product (GDP) is growing too.
Hence, when the Federal reserve (government) of the United States of America uses contractionary monetary policy to reduce inflation, it sells treasury securities at an increasing (high) interest rates, which eventually leads to a stronger dollar that lowers net exports (total trade) in an open economy.
Wilcox Corporation reported the following results for its first three years of operation: 2020 income (before income taxes): $300,000 2021 loss (before income taxes): $(2,700,000) 2022 income (before income taxes): $3,000,000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022. Assuming that Wilcox elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021
Answer:
$1,890,000
Explanation:
Calculation to determine what income (loss) is reported in 2021
2021 Reported Income loss=[$2,700,000-($2,700,000 × 30%)]
2021 Reported Income loss=($2,700,000-$810,000)
2021 Reported Income loss=$1,890,000
Therefore the income (loss) that is reported in 2021 will be $1,890,000
You have been offered an investment that will pay you a lump sum of $30,000 25 years from today, along with a payment of $1,000 per year for 25 years starting one year from today. How much are you willing to invest today to have this investment in your portfolio assuming you wish to earn a rate of 6 percent compounded annually
Answer:
$5,793.40
Explanation:
The amount you invest is called the Principle Value (PV). Therefore the question requires us to determine the Principle Amount that will pay you a lump sum of $30,000 25 years from today.
FV = $30,000
N = 25
PMT = ($1,000)
P/Yr = 1
I = 6 %
PV = ?
Using a Financial Calculator to input the values as shown above, the Principle Value (PV) is calculated as $5,793.40.
Therefore, you will be willing to invest $5,793.40 today to have this investment in your portfolio
What differences and similarities exist between monopolistic competitive firms and perfect competitive firms?
Answer:
In perfect competition, the product offered is standardized whereas in monopolistic competition product differentiation is there. In monopolistic competition, every firm offers products at its own price. ... Entry and Exit are comparatively easy in perfect competition than in monopolistic competition.
Explanation:
(hope this helps)
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Sales (358,400 units) $4,377,000
Cost of goods sold 2,590,720
Gross profit 1,786,280
Operating expenses 837,760
Net income $948,520
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Cullumber receives a special order for 24,500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs.
Required:
Prepare an incremental analysis for the special order.
Answer:
Net Income will increase by $32,625
Explanation:
The Incremental analysis for the special order is done below:
Reject Order Accept Order Net Income -
Increase/(decrease)
Revenue $0.00 $205,310 $205,310
Cost of goods Sold $0.00 ($123,970) ($123,970)
Operating Expense $0.00 ($48,715) ($48,715)
Net Income $0.00 $32,625 $32,625
Revenue
This is calculated by multiplying the number of units of special order with the price per unit i.e. $8.38. As shown below:
24,500 x $8.38 = $205,310
Cost of Goods Sold
As there is only change in the variable cost due to the manufacturing of additional units. Therefore, we would calculate the additional variable cost by multiplying the number of units with the variable cost per unit.
Variable Cost per unit = (2,590,720 * 70%) / 358,400 units = $5.06 per unit
Cost of Goods Sold = 24,500 x $5.06 = $123,970
Operating expense
As there is only change in the variable cost due to the manufacturing of additional units. Therefore, we would calculate the additional variable cost by multiplying the number of units with the variable cost per unit. Then we would add the additional shipping cost of $2,900/
Operating Expense Variable Cost per unit = (837,760 * 80%) / 358,400 units = $1.87 per unit
Operating Expense = 24,500 x $1.87 = $45,815 + $2900 = $48,715
The long-run aggregate supply curve is vertical because it incorporates the assumptions of Keynesian theory. the economy will gravitate to the position of full employment when all variables are flexible. wages, prices, and interest rates are not flexible in the long run. many inputs are fixed.
Answer:
the economy will gravitate to the position of full employment when all variables are flexible
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
In order to understand both short-run economic fluctuations and how the economy move from short to long run, we need the aggregate supply and aggregate demand model.
An aggregate supply curve gives the relationship between the aggregate price level for goods or services and the quantity of aggregate output supplied in an economy at a specific period of time.
The long-run aggregate supply curve is vertical because the economy will gravitate to the position of full employment when all variables are flexible.
This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country.
Additionally, the long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.
Two of the different data categories for an HRIS database are: Group of answer choices information about people and information about the organization, information about the organization and information about the competitive environment information about people and information about market trends information about people and information about the competitive environment
Answer:
information about people and information about the organization.
Explanation:
A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.
A data dictionary can be defined as a centralized collection of information on a specific data such as attributes, names, fields and definitions that are being used in a computer database system.
In a data dictionary, data elements are combined into records, which are meaningful combinations of data elements that are included in data flows or retained in data stores.
This ultimately implies that, a data dictionary found in a computer database system typically contains the records about all the data elements (objects) such as data relationships with other elements, ownership, type, size, primary keys etc. This records are stored and communicated to other data when required or needed.
Human Resources Information System (HRIS) is simply used to gather or collect data (informations) about the employee working in an organization.
Hence, two of the different data categories for an HRIS database are information about people (employees) and information about the organization.
Suppose you are interested in taking an FHA mortgage loan for $350,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 6% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP
Answer:
The answer is "$20.98 ".
Explanation:
[tex]Loan \ Amount = - 350,000\\\\UFMIP (1\%) = - 3500\\\\Total \ Loan \ Amount = - 353,500\\\\\frac{I}{y} =\frac{6\%}{12} = 0.5 \\\\N = 30\times 12 = 360\\\\PV= -353500\\\\ CPT \ PMT = \$2,119.41 \\\\[/tex]
Suppose
[tex]Loan = 100\\\\UFMIP = 1\\\\Loan\ \ Amount = 101\\\\Proportionate\ \ UFMIP = 2119.41 \times ( \frac{1}{101})= 20.98[/tex]
Pique Corporation wants to purchase a new machine for $300,000.Management predicts that the machine can produce sales of $200,000 each year for the next 5 years.Expenses are expected to include direct materials,direct labor,and factory overhead (excluding depreciation)totaling $80,000 per year.The firm uses straight-line depreciation with no residual value for all depreciable assets.Pique's tax rate is 40%.Management requires a minimum 10% rate of return on all investments.What is the payback period for the new machine (rounded to nearest one-tenth of a year)? (Assume that the cash inflows occur evenly throughout the year. )
A) 2.5 years.
B) 2.7 years.
C) 3.1 years.
D) 3.6 years.
E) 4.2 years.
Answer:
c
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
Cash flow = profit after tax + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(300,000 - 0) / 5 = $60,000
Profit after tax = (1 - tax rate) x (sales - expenses - depreciation)
0.6 x ($200,000 - $80,000 - $60,000) = $36,000
Cash flow = $36,000 + 60,000 = 96,000
Payback period = $300,000 / $96,000 = 3.1 years
Robert and Linda Williams plan to invest $11,000 a year in an educational IRA for their granddaughter, Sloane Martin. They will make these deposits on January 2nd of each year. Robert and Linda feel they can safely earn 6%. How much will be in this account on December 31 of the 18th year?
Answer:
FV= $339,962.18
Explanation:
Giving the following information:
Annual investment (A)= $11,000
Number of periods (n)= 18 years
Interest rate (i)= 6%
To calculate the future value (FV) after 18 years, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {11,000*[(1.06^18) - 1]} / 0.06
FV= $339,962.18
The Work in Process Inventory account of a manufacturing company has a $3,550 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1,610 and direct labor cost of $870. Therefore, the amount of applied overhead is:
Answer:
$1,070
Explanation:
Calculation to determine the amount of applied overhead is:
Using this formula
Applied overhead = Total cost of WIP - Direct materials - Direct labor
Let plug in the formula
Applied overhead= $3,550 - $1,610 - $870
Applied overhead=$1,070
Therefore the amount of applied overhead is:$1,070
Required information
SB Angle Max Industries produces a product...
[The following information applies to the questions displayed below.]
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year’s expected costs and activities are shown below.
Assembly Finishing
Direct labor hours 190,000 DLH 149,000 DLH
Machine hours 390,000 MH 95,550 MH
Overhead costs $ 390,000 $ 581,100
TB MC Qu. 17-117 Assume that the Assembly Department allocates...
Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department?
Answer:
Total allocated costs= $19
Explanation:
First, we need to calculate the predetermined manufacturing overhead rate for each department:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 390,000 / 390,000= $1 per machine hour
Finishing= 581,100 / 149,000= $3.9 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 1*3.4= $3.4
Finishing= 3.9*4= $15.6
Total allocated costs= $19
Which of the following is not a characteristic of advances in order pick technology
Answer:
I don't see an attachment
Explanation:
You should make another question with the picture
The following information relates to Mountain Transportation for its first year of operations (data in millions of dollars): Pretax accounting income: $ 300 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 8 Depreciation expense 80 Depreciation in the tax return using MACRS: 160 The applicable tax rate is 40%. There are no other temporary or permanent differences. Mountain's net income ($ in millions) is:
Answer:
the net income is $176.80 millions
Explanation:
The computation of the net income is shown below"
Pre tax accounting income $300
Less: income tax expense
tax payable (($300 + $8 - $80) × 40%) -$91.2
Deferred tax liability ($80 × 0.40) -$32
net income $176.80
Hence, the net income is $176.80 millions
We simply deduct the income tax expense from the pre tax accounting income so that the net income could come
Chapter 14: Applying Excel Data Example E Cost of equipment needed $60,000 Working capital needed $100,000 Overhaul of equipment in four years $5,000 Salvage value of the equipment in five years $10,000 Annual revenues and costs: Sales revenues $200,000 Cost of goods sold $125,000 Out-of-pocket operating costs $35,000 Discount rate 14% Enter a formula into each of the cells marked with a
Answer:
Net present value (NPV) = $31,493
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the upper part of Sheet1 of the attached excel file for the complete question.
Also note: See the lower part of Sheet1 of the attached excel file for the answer to this question.
From the the lower part of Sheet1 of the attached excel, we have:
Net present value (NPV) = $31,493
Robin, a middle management employee, becomes aware of accounting irregularities in financial reports submitted by his boss, Brooke, which suggest that Brooke has diverted $10,000.00 to the company's sustainability initiative rather than distributing the funds to the purchasing department budget as intended. The sustainability initiative has facilitated major improvements in local water quality standards and, as a result, the overall health of the community has markedly increased, at a sizeable savings of medical costs (approximately $50,000.00 in medical savings in the current year alone.
What considerations should be most important to Robin's ethical decision-making process?
a. Only the illegality of the diversion of the money.
b. The illegaility of the diversion of the money and the fiduciary duty that Brooke owes to the Company.
c. The negative consequences that Robin might face if he blows the whisle on his boss.
d. The fact that everyone in the department does it.
the illegality of the money's diversion and Brooke's duty of care to the Corporation. Robin's ethical decision-making process should prioritize certain factors. Hence, (B) is the best choice.
What is meant by decision-making process?The corporate decision-making process is a step-by-step procedure that enables professionals to resolve issues by analyzing the facts, considering the options, and selecting a course of action from there. At the conclusion of this clearly defined procedure, there is also an opportunity to assess whether the chosen course of action was the best one.
You must first identify the issue or question you must resolve in order to make a decision. Your choice should be clearly stated. The decision train will be derailed before it even leaves the station if you choose the wrong problem to tackle or if the problem you have picked is too wide.
Make your decision timely and measurable if you need to accomplish a particular goal as a result of it.
Learn more about decision-making process, from :
brainly.com/question/19901674
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g For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting their marketing mix variables in order to give customers Group of answer choices better Medicaid and Medicare payments. a perceptual map of the imaging landscape. more product features than the competition offers. lower prices than the competition offers. a clear, distinctive, and desirable understanding of their products relative to competing products.
Answer: a clear, distinctive, and desirable understanding of their products relative to competing products.
Explanation:
Marketing mix is regarded as the foundation model for every business as it's based on the product, the price, place, and also promotion. Marketing mix is the marketing tools sets used in pursuing the marketing objectives of s company.
For each target market, General Imaging Corporation, a manufacturer of imaging equipment, will engage in positioning, adjusting their marketing mix variables in order to give customers a clear, distinctive, and desirable understanding of their products relative to competing products.
Byron Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5 year life. The salvage value of the equipment is estimated to be $75,000. If the hurdle rate is 10%, what is the approximate net present value
Answer:
$25,647.78
Explanation:
The Net Present Value is the value today of future cashflows discounted by the effective interest rate. In this case the interest rate is the hurdle rate of 10%.
Using a financial calculator, this will be calculated by the CFj function as follows :
($400,000) CF 0
$100,000 CF 1
$100,000 CF 2
$100,000 CF 3
$100,000 CF 4
$175,000 CF 5
i/yr = 10%
then SHIFT NPV
Inputting the data in the calculator above, we get a net present value of $25,647.78
Whispering Winds Corp. issued common stock for proceeds of $513000 during 2022. The company paid dividends of $91000 and issued a long-term note payable for $345000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $75000. The financing section of the statement of cash flows will report net cash inflows of
Answer:
$347,000
Explanation:
Financing Activities are Activities regarding sourcing and repayment of finance.
Also, Consider only transactions or events involving movement of cash.
Cash flow from Financing Activity
Proceeds from Issue of shares $513000
Dividend Paid ($91000)
Purchase of treasury stock ($75000)
Net Cash Provided by Financing Activities $347,000
therefore,
The financing section of the statement of cash flows will report net cash inflows of $347,000.
what does CPI stand for and what is it used to measure?
Answer:
Consumer price index; A consumer price index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
Besides possibly paying the premiums for a medical insurance plan, the insured is almost always responsible for making Other, out-of-pocket payments. This practice helps keep overall costs down for both insureds and the insurance companies and ensures that insureds are informed about the costs of health care.
For each Of the following scenarios, select which type Of other cost or provision is illustrated. Deion had routine surgery performed at his local hospital. All charges were within the reasonable and customary costs in his area.
a. Deductible
b. Internal limits
c. Coordination Of benefits
d. Participation (co-insurance)
Answer: b. Internal limits
Explanation:
Sometimes there will be internal limits on a policy which will usually be less than the general policy limits so as to limit the amount the insurance company will pay on certain goods such as surgical procedures.
This is therefore the relevant provision here because there is probably a cap on the amount that Deion's insurance company will pay on the surgery but as Deion was within acceptable costs, he won't have to pay for passing any internal limits.
Production Budget Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale East Region unit sales 55,000 30,000 West Region unit sales 95,000 60,000 Total 150,000 90,000 The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 18,000 and 10,000 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 12,500 and 8,000 units, respectively. Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answer:
Total units to be produced:
Bath Scale = 144,500
Gym Scale = 88,000
Explanation:
The following anticipated unit sales for the scales by sales region are given in the question:
Bath Scale Gym Scale
East Region unit sales 55,000 30,000
West Region unit sales 95,000 60,000
Total 150,000 90,000
The production budget can now be prepared as follows:
Weightless Inc.
Production Budget
For the Month Ending October 31
Units Bath Scale Units Gym Scale
Expected units to be sold 150,000 90,000
Desired inventory, October 31 12,500 8,000
Total 162,500 98,000
Estimated inventory, October 1 (18,000) (10,000)
Total units to be produced 144,500 88,000
Suppose a consumer moves up and to the left along an indifference curve from point A to point B. If the consumer gives up one unit of X (on the horizontal axis), but only requires a small amount of good Y (on the vertical axis) to compensate, then what can we say about the marginal rate of substitution and the slope of the indifference curve between points A and B
Answer: hello options to your question is missing attached below is the complete question
answer : The marginal rate of substitution is low and the indifference curve is relatively flat
Explanation:
What we can say about the marginal rate of substitution and the slope of the indifference curve between points A and B is that the marginal rate of substitution is low and the indifference curve is relatively flat
Along an indifference curve the Total utility will remain unchanged along the curve hence the movement from point A to point B does not change the value of total utility but if the consumer gives up one unit of X and requires a small amount of good Y then we can say the MRS is low
marginal rate of substitution is calculated as ; Δy / Δx
One traditional source of capital involves retaining the excess of revenues over expenses. The Kay-z Pharmaceutical Company, a for-profit corporation, is a relatively small start-up company. As a start-up, Acme has recorded operating losses for each of its five years of existence. The company now needs to raise more capital for research and development. Will retaining the excess of revenues over expenses be a possible source of capital for Acme?
a. Yes
b. No
c. Not applicable
Answer:
Acme Pharmaceutical Company (or is it Kay-z?)
Retaining the excess of revenues over expenses as a possible source of capital for Acme:
c. Not applicable
Explanation:
The retention of retained earnings cannot be applicable in this case because for the past five years of its existence the company had recorded operating losses. It had not retained any profits so far. This means that there is no internally-generated source of financing for the company. It can only rely on outside finance in the form of equity (stockholders) or debt (creditors).
Suppose you have just paid a nonrefundable fee of $1,000 for your meal plan for this academic term. This allows you to eat dinner in the cafeteria every evening.
A. You are offered a part-time job in a restaurant where you can eat for free each evening. Your parents say that you should eat dinner at the cafeteria anyway since you have already paid for those meals. Are your parents right? Explain why or why not.
B. You are offered a part-time job in a different restaurant where, rather than being able to eat for free, you receive only a large discount on your meals. Each meal there will cost you $2; if you eat there each evening this semester, it will add up to $200. Your roommate says that you should eat in the restaurant since it costs less than the $1,000 that you paid for the meal plan. Is your roommate right? Explain why or why not.
Answer:
A. Parents are not right
B. Roommate is not right
Explanation:
A.Based on the information given your Parents are NOT right reason been that since the two or both of the meals are free for you to eat from you should therefore eat at either the restaurant or cafeteria that you think or felt will benefits you the most at that point in time.
B..Base on the information given your roommate is NOT right, reason been that you should eat at either the restaurant or cafeteria that you think will benefits you the most which means that you can decide to eat from either of the restaurant which food is free or the restaurant which meal will cost you $2 meal after you value the $2 meal to be truly $2 meal.