Answer:
Present value of the cash flows = $1,625,000 /1.04 + $1,685,335/1.04 + $1,975,000/1.04 + $600,000/1.04 = $5,389,337.27
You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year. ⇒ ANNUITY
SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund. ⇒ UNEVEN CASH FLOW (EACH EMPLOYEE'S SALARY VARIES, SO THE TOTAL EXPENSE ALSO VARIES)
Franklinia Venture Capital (FVC) invested in a budding entrepreneur's restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years. ⇒ UNEVEN CASH FLOW (PROFITS ARE NOT IDENTICAL FORM ONE PERIOD TO ANOTHER)
You have committed to deposit $600 in a fixed interest-bearing account every quarter for four years. ⇒ ANNUITY
Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (MPC) and one has a low MPC. If the money supply is increased by the same amount in each economy, the high MPC economy will experience:
Select one:
a. a smaller increase in output and a
smaller decrease in the interest rate.
b. A larger increase in output and a
smaller decrease in the interest rate.
c. a larger increase in output and a
larger decrease in the interest rate.
d. A smaller increase in output and a larger decrease in the interest rate
= A larger increase in output and a
smaller decrease in the interest rate.
If the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
What does a high MPC imply?A high MPC implies increased consumption while a low MPC shows increased savings.
Two factors that increase MPC include:
Readily available credit Lower interest rates.Thus, if the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
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What is the mental and physical effort made by humans for the production of goods and services?
Labor
Capital
Land
Entrepreneurship
Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent.
a. What is Mullineaux's WACC?
b. The companies president has approached you about Mullineaux's capital structure. He wants to know why the company doesn't use more preferred stock financing because it costs less than debt. What would you tell the president?
Answer:
a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)
WACC = 7.2 + 0.25 + 0.35*7*0.65
WACC = 7.2 + 0.25 + 1.5925
WACC = 9.0425%
WACC = 9.04%
b. After tax cost of debt = 7*(1 - 0.35)
After tax cost of debt = 7*0.65
After tax cost of debt = 4.55%
So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $24,300; other assets, $147,300; liabilities, $48,200; Morgan, capital, $58,100; Rockwell, capital, $65,300. The other assets were sold for $123,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling
Answer:
$66,666.67
Explanation:
The amount available for sharing is the cash and the proceeds from sales of assets minus liabilities.
= $24,300 + $123,900 - $48,200
=$148,200 - $48,200
=$100,000
Morgan and Rockwell share losses in the ratio of 2:1. meaning Morgan taken 2/3 of shareable amounts
Morgan will get
=2/3 x $100,00
=$66,666.67
What kind of pricing is based upon the perception of value and can command a higher price point?
Premium pricing
Economy pricing
Psychological pricing
Pricing for penetration
Answer: economy
Explanation:
Sample
is the number of people questioned for a survey.
Answer: could you add the picture of the survey
Explanation:
This section of the VITA/TCE certification Foreign Student test covers determining residency status, the use of Form 8843, and filing status. It consists of 13 true/false questions and 4 scenario-based multiple choice questions.
Allow approximately 20 minutes to complete this segment status.
1. Hans entered the U.S. on December 15, 2012 in F-1 immigration never been to the United States before and he did not change immigration status during 2017. For federal income tax purposes, Hans is a non-resident for 2017.
A. True
B. False
2. Abshir is a visiting professor at the local university. Abshir was a graduate student from August 2011 to July 2013 in F-1 immigration status. He re-entered the United States on December 20, 2017 in J-1 immigration status. For federal income tax purposes, Abshir is a resident alien for 2017.
A. True
B. False
3. Juan served as a visiting scholar in F-1 immigration status from December 2011 through June 2014. In January of 2016, Juan retumed to the United States as a graduate student. For federal income tax purposes, Juan is a resident alien for 2017.
A. True
B. False
4. Emil came to the United States in F-2 immigration status with his wife on August 20, 2016. He has not changed his immigration status. For federal income tax purposes, Emil is a resident alien for 2017.
A. True
B. False
5. Tamera lived with her parents in F-2 immigration status in the United States from August 2007 to June 2011. She returned to the U.S. to attend college in F-1 immi- gration status on May 1, 2016. Tamera does not need to file Form 8843 for 2017.
A. True
B. False
Answer:
1. Hans entered the U.S. on December 15, 2012 in F-1 immigration never been to the United States before and he did not change immigration status during 2017. For federal income tax purposes, Hans is a non-resident for 2017.
B. False
F-1 immigration visas are given to students. They are required to pay taxes on any income that they earn, but they are not required to pay FICA taxes.
2. Abshir is a visiting professor at the local university. Abshir was a graduate student from August 2011 to July 2013 in F-1 immigration status. He re-entered the United States on December 20, 2017 in J-1 immigration status. For federal income tax purposes, Abshir is a resident alien for 2017.
A. True
Since Abshir holds a J-1 immigration visas and returned to the US to live, the IRS considers him a resident alien.
3. Juan served as a visiting scholar in F-1 immigration status from December 2011 through June 2014. In January of 2016, Juan returned to the United States as a graduate student. For federal income tax purposes, Juan is a resident alien for 2017.
A. True
Juan is responsible for paying both income and FICA taxes.
4. Emil came to the United States in F-2 immigration status with his wife on August 20, 2016. He has not changed his immigration status. For federal income tax purposes, Emil is a resident alien for 2017.
B. False
Emil is not a resident alien and must file form 8843.
5. Tamera lived with her parents in F-2 immigration status in the United States from August 2007 to June 2011. She returned to the U.S. to attend college in F-1 immigration status on May 1, 2016. Tamera does not need to file Form 8843 for 2017.
A. True
Tamera will be considered a resident alien for tax purposes, so she doesn't file form 8843.
Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.
SPRAGUE COMPANY BALANCE SHEET DECEMBER 31, 2014
Cash $40,000
Accounts payable $80,000
Receivables 75000
Mortgage payable 140,200
Inventory 95000
Common stock ($1 par) 150,000
Plant assets (net) 220,000
Retained earnings 60,000 430000
The net income for 2017 was $25,000. Assume that total assets are the same in 2016 and 2017.
Compute each of the following ratios. for each of the four, indicate the manner in which it is computed and its significance as tool in the analysis of the financial soundness of the company
a) Current ratio
b) Acid-test ratio
c) Debt to assets ratio
d) Return on asset
Answer:
A. Current Ratio= 2.63
B. Acid-Test Ratio = 1.44
C. Debt to Assets Ratio 51.16%
D. Return on assets 5.81%
Explanation:
a. Calculation forn Current Ratio
First step is to Calculate the Total Current Assets
Cash 40,000
Receivables 75,000
Inventory 95,000
Total Current Assets 210,000
Now let calculate Current Ratio
Current Ratio= Current Assets / Current Liabilities
Current Ratio=210,000/80,000
Current Ratio= 2.63
b Calculation for Acid-Test Ratio
Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities
Acid-Test Ratio =(210,000-95,000)/80,000
Acid-Test Ratio =115,000/80,000
Acid-Test Ratio = 1.44
c. Calculation for Debt to Assets Ratio
First step is to calculate total Debt
Accounts payable 80,000
Mortgage payable 140,000
Total Debt 220,000
Now let calculate the Debt to Assets Ratio
Debt to Assets Ratio= Total Debt/ Total Assets
Debt to Assets Ratio=220,000/430,000
Debt to Assets Ratio= 51.16%
d. Calculation for Return on assets
Return on assets= Net Income/ Average Assets
Return on assets=25,000/430,000
Return on assets 5.81%
A statement of cash flows helps answer all of the following:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
3. How can the company improve its operations?
4. How does a company receives its cash?
5. What are the changes in the non-cash accounts?
Answer:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
4. How does a company receives its cash?
Explanation:
The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.
This includes:
Why there were changes in the cash account because it shows what activities brought in cash and which took cash.Where the company spends its cash because those entries will be shown.Where the company gets its cash as well.The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%
Answer:
The tax currently owed to the U.S. government is:
$18,900
Explanation:
a) Data and Calculations:
Income generated by the foreign subsidiary = $1,000,000
Tax paid by the subsidiary in its country of residence = $400,000
Dividend paid to the U.S. parent = $54,000
Federal tax rate = 35%
Tax on the dividend = $18,900 ($54,000 * 35%)
b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation. This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.
Coronado Industries had the following accounts and balances:
Accounts payable $31400 Equipment $34900
Accounts receivable 4550 Land 34100
Buildings ? Unearned service revenue 10100
Cash 15250
Total stockholders' equity ?
If the balance of the Buildings account was $70200 and $5300 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?
Answer:
15250
Explanation:
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Answer:
1637
Explanation:
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Which statements describe letterheads?
They should have a different design than the business card.
They provide the contact information for a business.
They are seldom needed in small organizations.
Business cards and letterheads should be of similar design.
They have the same information as a business card.
Answer:
B- They provide the contact information for a business.
E- Business cards and letterheads should be of similar design
Explanation:
A letterhead is the heading found at the top of a paper and it usually includes the name of the organization, the logo and the contact information. The letterheads help to provide a professional image and consistency should be maintain in all the business stationery. According to that, the answer is that the two statements that describe letterheads are: they provide the contact information for a business and business cards and letterheads should be of similar design.
hope this helps pls let me know
Scientist of OB recognize that
organisations are not static but
dynamic and_________
Select one
a. Processing
b. Systematic
c. Researching
d. Ever changing
= Ever changing
Explanation:
the answer is = Ever changing
$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n
Answer:
$424.36
Explanation:
The applicable formula =M= P ( 1+ r)^2
Where M is the amount after two years
P = principal amount: $400
r = interest rate: 3% or 0.03
n =number of period :2
M= $400 x ( 1+ 0.03) ^ 2
M=$400 x 1.0609
M= $424.36
Supervisor: "Our goal is to make add-on sales during 85% of sales. If you make 35
sales, how many add-on sales do you need to make to meet the goal?"
Our goal is to make ad on sales during 85% of sales if you make 35% sales how many add-on on sales do you need to make to meet the goal?
Answer:
Calculate inventory turnover ratio in each of the following alternative cases
case 1: cash sales 25% of credit slaes credit sales Rs 300000 cross profit 20% on revenue form operations ie net sales closing inventory Rs 160000, opening inventory Rs 40000
case 2: cash sales 20% of Total sales, credit sales Rs 450000, Gross profit 25% on soct opening inventroy Rs 375000, closing inventorys 112500
Is rental income debit or credit
Answer:
Debit
Explanation:
Rent Income is recorded by crediting the account. Cash is debited if cash is received. Rent Receivable is debited if it is to be collected at a later date.
Grain Farm Inc. files a suit against Harvest Services. Before the court can exercise jurisdiction over Harvest, the court must have proof that :_____.
a. Grain Farm did not act to precipitate a dispute with Harvest.
b. Grain Farm is prepared to notify Harvest of the suit.
c. Harvest was notified of the suit.
d. Harvest committed the act of which Grain Farm complains.
Answer:
C)Harvest was notified of the suit.
Explanation:
From the question, we are informed about Grain Farm Inc. that files a suit against Harvest Services. In this case, Before the court can exercise jurisdiction over Harvest, the court must have proof that Harvest was notified of the suit. jurisdiction as regards to law can be explained as the right a case has over a particular subject matter. And all categories of court can exercise this power to adjudicate cases
Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into three activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 25 days of the project and to bring in $25,000. Even though we are 30 days into the project, we still see that we have only 90 percent of this activity complete. The second activity relates to company donations and is scheduled to run for 30 days starting on day 5 and extending through day 35. We estimate that, even though we should have 83 percent (25/30) of this activity complete, it is actually only 50 percent complete. This part of the project was scheduled to bring in $150,000 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $50,000. So far, $175,000 has actually been brought in on the project.
Calculate the Schedule Variance, Schedule Performance Index, and Cost (actually value in this case) Performance Index. How is the project going? (Hint: Note that this problem is different since revenue rather than cost is the relevant measure. Use care in how the measures are interpreted.)
Answer:
1. schedule variance = -$52,500
2. SPI = 0.65
3. CPI = 0.56
Explanation:
to get the solution, we calculate for BRWS and BRWP
first we calculate the budgeted revenue of the work scheduled for each activity using this formula:
budgeted revenue * planned completion
A = 25,000 x 100percent
= $25000
B = 150,000 x (25/30) percent
= $125000
C = 50000 x 0percent
= 0$
total = $25000+$125000+$0
= $150000
Next we calculate budgeted revenue of work performed (brwp)
calculated using this formula:
budgeted revenue x actual completion
A = 25000 x 90percent
= 22500 dollars
B = 150000 x 50percent
= $75000
C = 50000 x 0%
= $0
total = 22500 + 75000 + 0
= $97500
1. schedule variance = BRWP - BRWS
= $97500 - $150000
= -$52500
we have a negative schedule, telling us that the project is behind schedule
2. schedule performance index = revenue of work performed divided by revenue of work schedule
= 97500/150000
= 0.65
3. cost price index = revenue of work performed divided by actual revenue
= 97500/175000
= 0.56
4. how the project is going:
the schedule performance index (SPI) is 0.65 which is less than 1. this is to say that the project is doing better than planned revenue when we talk of revenue
In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal
= fiscal; monetary
With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.
What is an Expansionary fiscal & monetary policy?This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.
Therefore, the Option A is correct.
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Wanda Company produces its finished product in two processing departments--Mixingand Finishing. The following information is available for the month of March:
Mixing Department:
The beginning work in process inventory was $17,130 ($14,880 direct materials and $2,250 converion costs) and consisted of 1.200 units.
During March, an additional 10.600 units were started into production. A total of 10.900 units were completed and transferred out to the Finishing Department.
The ending work in process inventory consisted of 900 units which were 80% complete as to conversion costs.
The following costs were incurred during March: direct materials $132,620; direct labor $140, 000; and overhead costs $101,770.
Direct materials are added at the beginning of the process in the Mixing Department and conversion costs are incurred evenly throughout the process.
Finishing Department:
The beginning work in process inventory was $57,210 ($44,250 transferred-in costs and $12,960 conversion costs) and consisted of 600 units.
During March, a total of 11.000 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 500 units which were 40% complete as to conversion costs.
The following costs were incurred during March: direct materials $143,000; direct labor $250, 000; and overhead costs $149.200.
Direct materials are added at the end of the process in the Finishing Department and conversion costs are incurred evenly throughout the production process.
Required:
a. Prepare a production report for March for the Mixing Department.
b. Give the general journal entry to record the transfer of the completed units from the Mixing Department to the Finishing Department for March.
c. Prepare a production report for March for the Finishing Department.
d. Give the general journal entry to record the completion of the units in the Finishing Department for March.
e. Draw the Work-in-Process Inventory T-accounts for the Mixing Department and the Finishing Department and enter the appropriate cost flow account data.
f. Why is computing cost of goods sold problematic in a process costing environment?
Answer:
Part a
Production report for March for the Mixing Department
Units Costs
Input
Opening Inventory 1.200 $17,130
Started during the period 10.600 $374,390
Total 11.800 $391,520
Output
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Part b
Debit : Work in Process - Finishing Department $365,150
Credit : Work in Process - Finishing Department $365,150
Part c
Production report for March for the Finishing Department
Units Costs
Input
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Output
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part d
Debit : Finished Goods Inventory $933,130
Credit : Work In Process - Finishing Department $933,130
Part e
Work-in-Process Inventory T-accounts for the Mixing Department
Units Costs
Debit
Opening Inventory 1.200 $17,130
Cost incurred 10.600 $374,390
Total 11.800 $391,520
Credit
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Work-in-Process Inventory T-accounts for the Finishing Department
Units Costs
Debit :
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Credit :
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part f
Cost of Goods Sold is a direct cost related to sale of goods. In process costing it is difficult to accurately value this amount since it contains the average cost. this means that units never sold would have been included in the calculation of the cost of goods sold.
Explanation:
It is important to first calculate the equivalent cost unit in each department to be able to solve the question. Calculations of equivalent units are shown below :
Mixing Department
Equivalent Units :
Conversion costs = 900 x 80% + 10,900 = 11,620
Material costs = 900 + 10,900 = 11,800
Equivalent Units Costs
Conversion = ($2,250 + $140,000 + $101, 770) ÷ 11,620 = $21.00
Material costs = ($14,880 + $132,600) ÷ 11,800 = $12.50
Finishing Department
Equivalent Units :
Process 1 = 11.000 + 500 = 11.500
Conversion costs = 500 x 40% + 11.000 = 11,200
Material costs = 11.000 + 500 = 11.500
Equivalent Units Costs
Process 1 = ($44,250 + $365,150) ÷ 11.500 = $35.60
Conversion = ($12,960 + $250,000 + $149,200) ÷ 11,200 = $36.80
Material costs = ($0 + $143,000) ÷ 11,500 = $12.43
A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.
Answer:
B
Explanation:
Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.
Does the marginal cost of a production increase?The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.
What occurs when a company's marginal cost increases?They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.
Why eventually does marginal cost increase with output?As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.
When output declines, what happens to the marginal cost?At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.
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Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year.
Required:
a. What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? Explain the relationship between the opportunity costs of the two goods.
b. Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade?
c. Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Should Canada accept the deal?
Answer:
A) Opportunity Cost = 1/15 or 0.067 car per wheat
B) PPC downward sloping concave curve, with cars & wheat axis intercepts = 20 & 300 (resp). 15M bushels consumption with 10M cars
C) 1 Car : 20 bushels wheat is not beneficial deal
Explanation:
A) Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
As 20 million cars or 300 million bushels wheat can be produced, opportunity cost of a bushel wheat is 20 M /300 M ie 0.067 units car .B) Production Possibility curve curve shows 2 product combinations, that an economy can produce with given resources & technology. Given fixed resources & technology, goods are inversely related & so curve downward sloping. And, it is concave due to increasing Marginal Opportunity Cost.
Canada's PPC is downward sloping concave curve, with intercept = 20M on axis of cars & intercept = 300M on axis of wheat. If Canada consumes (& produces) 10 million cars, it can consume 15M bushels of wheatC) Domestic Car : Wheat trade off ratio is = 20M : 300M ie 1: 15 . So, Trade of 20 bushels wheat per car is not beneficial for Canada. As, it is higher than domestic sacrifise ratio of 15 bushels wheat per car.
Differentiate domestic housekeeping from institutional housekeeping
Trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
a) true
b) false
Answer: True
Explanation:
As the proverbial 'Global policeman', the U.S. enacts sanctions on countries that it believes are acting in a way that is not beneficial to her own people or the plant at large.
This includes human rights abuses, poor labor standards and environmental standards amongst others. These sanctions are meant to hurt the sanctioned country so that they right their wrongs. Countries such as Burma are under trade sanctions due to their poor human rights record in dealing with Rohingya Muslims.
The statement is true that trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
What are trade sanctions?Trade sanctions are used as a tool for a penalty in order to restrict one nation's actions. It is initiated by the US when it started to protect its domestic market from abuse of foreign markets.
Therefore, it is also imposed to make a country act to certain international standards in different aspects for ensuring right and wrong activities in all nations.
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Discussion: Resistance to change is a normal everyday aspect in the workplace. Note what happens to the organizational climate when this resistance occurs and any tactics to reduce negative connotations when dealing with change.
Explanation:
Resistance to change occurs when there is a change in the way operations are carried out in an organization. These changes can be the implementation of new policies and procedures, system, work design, etc.
This situation can cause conflict, insecurities and create a negative organizational environment that hinders the development and productivity of employees. Generally resistance to changes occurs due to the lack of sufficient information that the employee has about the new changes that will happen in the company, which can cause insecurity, fear of losing his job, etc.
For this situation to be avoided, there needs to be a complete explanation of how the changes will occur and why it will be beneficial for the company and the work. It is necessary that the change takes place in an adaptive way, that there is necessary training and availability of information through several channels so that all employees are integrated with the news.
Record the withdrawal if Benson on the assumption that she is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200 for her equity.
Answer:
(a) Dr Benson, Capital 138,000
Cr North, Capital 138,000
(b) Dr Benson, Capital 138,000
Cr Schmidt, Capital 138,000
(c) Dr Benson, Capital 138,000
Cr Cash 138,000
(d) Dr Benson, Capital 138,000
Dr Meir, Capital 28,500
Dr Lau, Capital 47,500
Cr Cash 214,000
(e) Dr Benson, Capital 138,000
Dr Accumulated depreciation-Equipment 23,200
Cr Meir, Capital 22,950
Cr Lau, Capital 38,250
Cr Equipment 70,000
Cr Cash30,000
Explanation:
Preparation of the journal entry to record Benson's withdrawal under each independent assumptions.
(a) Dr Benson, Capital 138,000
Cr North, Capital 138,000
(b) Dr Benson, Capital 138,000
Cr Schmidt, Capital 138,000
(c) Dr Benson, Capital 138,000
Cr Cash 138,000
(d) Dr Benson, Capital 138,000
Dr Meir, Capital 28,500
[(214,000-134,800)*3/8]
Dr Lau, Capital 47,500
[(214,000-138,000)*5/8]
Cr Cash 214,000
(e) Dr Benson, Capital 138,000
Dr Accumulated depreciation-Equipment 23,200
Cr Meir, Capital 22,950
[(138,000+23,200)-(70,000+30,000)*3/8]
Cr Lau, Capital 38,250
[(138,000+23,200)-(70,000+30,000)*5/8]
Cr Equipment 70,000
Cr Cash30,000
Five firms exist in the Liagiba industry. Their respective market shares are 35, 25, 15, 15, and 10 percent. Five firms exist in the Haras industry. Their respective market shares are 35, 30, 25, 8, and 2 percent.
Required:
What is the Herfindahl index for the both industries?
Answer:
Liagiba industry = 2400
Haras industry = 2818
Explanation:
The HHI is calculated by squaring the market share of each firm in the industry.
Liagiba industry = 35² + 25² + 15² + 15² + 10² = 1225 + 625 +225 + 225 + 100 = 2400
Haras industry = 35² + 30² +25² + 8² + 2² = 1225 + 900 + 625 + 64 + 4 = 2818
According to Interland (2009), the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists of tracing the consequences of that policy not merely for one group but for all groups. Discuss
Answer:
The economy is a human activity whose purpose is to ensure the production, exchange, distribution and consumption of the goods and services that people need. The goal of the national economy is to ensure the livelihood and development of the country's population, therefore the national economy includes activities such as the procurement of food and clothing, the construction and heating of housing, education, and the care of health and cultural needs. The economy includes enterprises and institutions that produce goods and services. Companies that produce similar goods and provide similar services form an industry. These are, for example, energy, machinery, plant growing, education, tourism, etc.
Thus, the economy seeks not only to guarantee the general welfare of citizens in the immediate future, but also in the long term, through the creation of consistent and solid economic policies that allow achieving high development for society.
The President of a company that produces an electronic gadget and sells it in a competitive market observed that the demand for the product is represented by a linear equation of the form P = 10 - .2Qd and the supply by P = .2Qs. He asked the Vice President for Marketing what P and Q will be at equilibrium?
Answer and Explanation:
The computation is shown below:
Demand is
P = 10 - 0.2Qd
And
supply is
P = 0.2QS
Now as we know that
Equilibrium would be
Qd = Qs = Q
So
10-0.2Q = 0.2Q
0.4Q = 10
Q = 25 units is the equilibrium quantity
and P = 0.2Q
= 0.2 × 25
= $5 is the equilibrium price
Because of specialization and comparative advantage, most people:_______
a. consume the products produced by their family and friends.
b. consume the products of many other specialists.
c. consume only what they produce themselves.
d. do not use money as a medium of exchange.
e. share whatever they produce
Answer:
B
Explanation:
A country (people) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (people).
According to economic theory, a person should specialise in the production of goods for which it has a comparative advantage.
If a person specialises only in the production of goods he specialises, he would not to buy other goods from specialists since she does not produce all the goods
