Answer:
The firm’s capital budgeting decision rules
The firm’s capital structure.
Explanation:
Capital budgeting is a term used to describe the proposed amount which a company has decided to set aside in the fort coming year to be spent on infrastructures or capital projects.
An organisation has the power to control its Capital budget, it also has the power to control its decision rules and it Capital structures (the contents of a company's capital spending).
A FIRM CAN NOT CONTROL THE TAX RATES AND THE GENERAL LEVEL OF STOCK PRICE WHICH ARE CONTROLLED BY GOVERNMENT AND EXTERNAL FORCES.
when an entity takes ownership of another entity's stock, equity interests, and assets
the consolidation of assets and liabilities under two entities
a legal consolidation of two entities into one entity
all of the above
PLEASE ANSWER ASAP
Answer:
a legal consolidation of two entities into one entity
he contributes money to a partnership
he applies for a small business loan
he reports investor fraud to the SEC
The one that can be stated as an example of a businessman who is making an investment is by making a contribution in the form of money to a partnership. Hence, Option B is correct.
An individual who owns or has shares in a private sector and engages in commercial or industrial activities to generate cash flow, sales, and income by combining human, financial, intellectual, and physical capital with the goal of sustaining is referred to as a businessman or businesswoman.
Although it is a difficult career path, those who choose business reap the rewards of their labour and have access to employment options in almost every industry.
One may find them in almost any company, managing operations, hiring and firing staff, keeping the books balanced, and managing funds. The one that can be used as an illustration of a businessman investing is by giving a financial contribution to a partnership.
Therefore, Option B is correct.
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Answer:
he contributes money to a partnership
Answer:
Please see below the journal entries of Ayayai Corporation for the year ending 2016 and 2017 respectively.
Explanation:
Ayayai Corporation
Journal Entries
For the Year ending 2016
Debit: Research & Development Expense $144,000
Credit: Cash $144,000
To record research and development expense.
Debit: Patent $17,400
Credit: Cash $17,400
To record legal cost relating to Patent.
Debit: Amortization Expense $435
Credit: Patent $435
To record amortization expense for the pro rated year.
Ayayai Corporation
Journal Entries
For the Year ending 2017
Debit: Amortization Expense $1,740
Credit: Patent $1,740
To record amortization expense for year.
AMORTIZATION EXPENSE CALCULATION:
Legal Cost = $17,400
Useful Life = 10 Years
Amortization Expense = Legal Cost / Useful Life
Amortization Expense = $17,400 / 10
Amortization Expense = $1,740 per year
But since in 2016 the patent was obtained on October 1, so Ayayai Corporation will have to pro rate the Amortization Expense in 2016 as below:
Amortization Expense = Annual Amortization Expense x No. of months / Total no. of months
Since patent was obtained in October so the No. of months is '3'
Amortization Expense = $1,740 x 3 / 12
Amortization Expense = $435
Answer:
AYAYAI CORPORATION
JOURNAL ENTRIES
Date Description DR CR
2016
Research and developemnt $144,000
Cash $144,000
Being the amount spend on research and development
OCt 1 Patent $17,400
Cash 17,400
Dec 31 Amortization Expense $435
Accumulated amortization $435
2017 Amortization Expense $1,740
Accumulated amortization $1,740
Explanation:
Sales $680,000 $573,000
Variable expenses 246,000 219.000
Fixed expenses 468,000 364,000
If Delicious stops making Rum Raisin ice cream, it estimates it can eliminate 75% of the fixed costs associated with that product. Similarly, if it stops making Blue Moon, it estimates it can eliminate 70% of the fixed costs associated with that product.
Given these figures, which of the following statements is true?
A) Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon.
B) Delicious would be better off if it discontinues Rum Raisin and would be worse off if it discontinues Blue Moon.
C) Delicious would be better off if it discontinues both products.
D) Delicious would be worse off if it discontinues either product.
Answer:
The correct choice here is A)
Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon.
Explanation:
Lets look at the figures:
Step I
Calculate the Total Costs for each product.
Total Cost (TC) = Fixed Cost + Variable Cost
TC for Rum Raisin =
$246,000+ $468,000
= $714,000
TC for Blue Moon =
$219,000 + $ 364,000
= $ 583 000
Step II
The business estimates that it can eliminate it's Fixed cost to a certain degree. Lets look at each before we make a decision.
New TC for each business is given as below:
New TC for Rum Raisin if 75% of Fixed Cost is eliminated =
$246,000+ ($468,000 x 25%)
= $246,000 + $117,000
New TC for Rum Raisin Ice Cream = $363,000
New TC for Blue Moon if 70% of it's Fixed Cost is removed =
$246,000+ ($468,000 x 30%)
= $246,000 + $140,400
New TC for Blue Moon Ice Cream = $386,400
The company Delicious is better off eliminating the product with the highest TC all other factors remaining accounted for and taken into consideration.
The product which must go is Blue Moon Ice Cream.
Cheers!
Answer: Followers of the efficient market hypothesis believe that "C) investors react quickly and accurately to new information.".
Explanation: The efficient market hypothesis states that the current price of an asset in the market reflects all available information that exists (historical, public and private). It considers that any news or future event that may affect the price of an asset, will make the price adjust so quickly, that it is impossible to obtain an economic benefit from it.
This adjustment happens so fast because investors act quickly and accurately in the face of new information.
Answer:
a) the correct answer is "B"
b) the correct answer is "C"
Explanation:
a) the correct answer is "B"
relies on nominal GDP which might have increased because of price increases and not output increases. As nominal GDP accounts for the price and it is calculated at the current price level. The answer is "B".
b) the correct answer is "C"
We can ask for growth rate of real GDP which excludes price change.