Select the correct answer.
Which verb form best completes the sentence?
¿A qué hora _____ usted a mi casa?
A.
vendrás
B.
vendrá
C.
vendrán
D.
vendré
Reset Next
Answer:
B
Explanation:
< Manny signs a variable lease. • He pays $10/square foot. ● His index is 2. His utilities will cost $350. If his index goes up to 2.5 next year, how much will Manny pay in rent? $8/square foot $25/square foot $12.50/square foot $50/square foot
Manny will pay option C. $12.50/square foot in rent.
How do we determine the amount of rent?A variable lease is a type of lease where the rent is based on a specific index or formula, rather than a fixed amount.
In this scenario, Manny is paying $10/square foot and his index is 2, and the utilities cost $350. If the index goes up to 2.5 next year, Manny's rent will increase.
To calculate the increase in rent, we can use the following formula:
Rent = Base rent + (Index x Utilities)
So, if the index goes up to 2.5, the new rent will be:
Rent = $10/square foot + (2.5 x $350)
Rent = $10/square foot + $875
Therefore, Manny will pay $12.50/square foot in rent if the index goes up to 2.5 next year.
So, the correct answer is $12.50/square foot.
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Sin Qua Corporation is a company listed on the stock exchange and issued corporate bonds. which statement is most likely true?
Answer:
B. Investors will have to pay tax on the interest income received from the bonds.
Explanation:
Managers at the Bank of Quebec are afraid that the bank will not have enough reserves at the end of the business day to meet withdrawals tomorrow. It currently has two options to borrow money overnight. First, it could borrow money from the Bank of Canada (BOC) at a rate of 0.75%. Second, it could borrow money from other banks at a rate of 0.25%.
1. What is the overnight rate?
2. What is the bank rate?
3. What would happen to other short-term interest rates if the Bank of Canada increases its overnight rate target?
A. They should remain unchanged.
B. They would become irrelevant.
C. They would decrease.
Answer:
Bank of Quebec
1. The overnight rate is 0.25%
2. The bank rate is 0.75%
3. If the Bank of Canada increases its overnight rate target, the other short-term interest rates:
B. They would become irrelevant.
Explanation:
a) Data and Calculations;
Bank of Canada (BOC) rate = 0.75%
Other banks' rate = 0.25%
b) The overnight rate is the interest rate at which a Canadian depository bank lends or borrows funds with other depository institutions in the Canadian overnight market. The central bank rate is the interest rate that the Bank of Canada charges other Canadian banks to borrow funds from it.
Answer:
1. What is the overnight rate? .25%
2. What is the bank rate? .75%
3. What would happen to other short-term interest rates if the Bank of Canada increases its overnight rate target?
It would also increase
Explanation:
Overnight rate:
If a bank needs to borrow money for the very short term, typically overnight, it has two options. First, it can borrow from other banks. This particular interest rate associated with overnight borrowing is referred to as the overnight rate. The overnight rate is not explicitly set by the BOC, but it is determined through the interaction of borrowers and lenders. In the question, the overnight rate is 0.25% . Even though the BOC does not set the overnight rate, it has a large amount of influence over it.
Bank rate:
The second option is for banks to borrow directly from the BOC at an interest rate called the bank rate. The bank rate is set by the BOC and is typically higher than the prevailing overnight rate in order to give banks incentive to borrow from each other. In the question, the discount rate is .75% .
The BOC sets a target for the overnight rate that it attempts to meet through open market operations. This target is typically met. Although households and firms are not directly affected by the overnight rate, the interest rates on other financial assets are. A low overnight rate means that banks can borrow money cheaply to meet reserve requirement. A high overnight rate means that it is expensive for banks to borrow money and the banks will pass this expense onto customers. Therefore, if the overnight rate rises, short‑term interest rates charged by banks will also increase.
Answer to part 3 is not one of the options given. However, the only correct answer would be that the the other short-term interest rates also increase.
The following data are taken from the management accounting reports of Dancer Co.:
Div. A Div. B Div. C
Income from operations $1,800,000 $1,350,000 $1,350,000
Total service department charges 1,700,000 1,050,000 1,100,000
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that: _________
Answer:
Dancer Co.
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that: _________
Division A's manager will be rewarded, whereas the manager did not achieve the best results.
Explanation:
a) Data and Calculations:
Div. A Div. B Div. C
Income from operations $1,800,000 $1,350,000 $1,350,000
Total service department charges 1,700,000 1,050,000 1,100,000
Departmental net income $100,000 $300,000 $250,000
b) The incentive bonus is based on a performance reporting line that is above the bottom-line. It is the bottom-line figure that affects the company. The performance of a division should not be judged solely on a line above the bottom-line. The departmental charges are allocated costs for services consumed during a financial period. They must be taken into account before deciding on an incentive bonus.
he Fine Crate Company owns several machines which cut wooden planks for building storage pallets, automatically loading the planks into rolling bins for transportation and handling. Each bin holds 200 planks and a machine can cut and load one bin in an hour, which Fine Crate Company uses planks at a rate of 1000 planks an hour. If the Fine Crate Company were to use a kanban loop to control the filling of the rolling bins, attaching one kanban card to each bin, how many cards should be used to govern this production, assuming a policy variable (safety factor) of 20%?
Answer:
6 cards
Explanation:
N = DT * (1+X) / C
Number of kanbans = [Demand during lead time + Safety stock] / Size of a bin
Number of kanbans = 1000 * 1 * (1 + 0.2) / 200
Number of kanbans = 1000*1*1.2 / 200
Number of kanbans = 6
So therefore, 6 cards should be used to govern this production.
Penny is studying to become a nurse. While she is taking her nursing courses, her guidance counselor also advises that she takes a course in
Spanish. How might adding this extra course help Penny in her new career?
A. Penny will be smarter because she has taken more classes
B. Penny will be able to interact with English and Spanish patients.
C. Penny will not use Spanish, but it will keep her busy during college.
D. Penny will qualify for a scholarship if she speaks Spanish.
Answer:
B :))))))))))))))))))))))))
. A researcher plans to ask employees whether they favor, oppose, or are indifferent about a change in the company retirement program. Formulate a hypothesis for a chi-square test and the way the variable would be created.
A statistical method for assessing the discrepancy between observed and expected data is the Chi-Square test. This test can also be performed to see if our data's categorical variables are related to it.
What are the Fundamentals of Hypothesis Testing?Hypothesis testing is a method for analyzing and inferring information about a population from a sample of data. It helps in deciding which sample data best support claims about the population that are mutually exclusive.
The null hypothesis (H0), which is the default position, is that the event won't take place. If a null hypothesis is not rejected, it has no impact on the study's findings.
Its sign is H0, which is pronounced H-naught.
The alternative hypothesis (H1 or Ha) is the logical antithesis of the null hypothesis. The alternative hypothesis is accepted once the null hypothesis is rejected. Its identifier is H1.
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Digby's Elite product Dim has an awareness of 72%. Digby's Dim product manager for the Elite segment is determined to have more awareness for Dim than Andrews' Elite product Apple. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Dim's existing awareness is lost every year. Assuming that Apple's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Digby's Elite product manager should spend in promotion to earn more awareness than Andrews' Apple product
Answer:
$2 million
Explanation:
The first $1 million will increase awareness to 72% x (1 + 22%) = 87.84%
But 1/3 is lost every year, so awareness will be 87.84% - 72%/3 = 63.84%.
It needs to spend at least $2 million:
Awareness increases to [72% x (1 + 22%) x (1 + 23%)] - 72%/3 = 84.04%
the awareness level will be higher than the 77% threshold.
Why might a marketer choose Internet advertising over television advertising? • A. Because television advertising is more expensive B. Because the Internet has been around longer than television • C. Because Internet advertising is more expensive O D. Because television only reaches people over the age of 50
The reason why a marketer might choose Internet advertising over television advertising is that A. Because television advertising is more expensive.
What were the reasons why a marketer could pick Internet advertising?Without spending money on a disproportionately large audience, online advertising enables you to identify, connect with, and engage people who are likely to be interested in your company. Online advertising provides detailed audience information so you may better target your efforts.
The reduced running costs of online marketing are one of its primary benefits for companies. Internet marketing makes advertising more affordable than more conventional forms of advertising like radio, television, and newspaper ads.
Therefore, option A is correct.
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1.Critically evaluate how success and failure in practice of basic management functions affect the organization. Support with real local examples.
Most often, the success and failure of the basic management functions of the organization rest on an effective or ineffective manager, who is in charge of the basic management functions.
How does basic management functions affect the organization?An organization's effective management entails the ability to plan, organize, lead, and control resources in order to achieve its goals and objectives. When these management functions are carried out successfully, the organization's efficiency, productivity, and overall performance are likely to improve.
As a result, a well-organized organization with a clear chain of command and decision-making process will be able to respond to challenges and opportunities more effectively.
However, when basic management functions are not carried out successfully, it can have a negative impact on the organization. Poor planning can waste resources and lead to missed opportunities, whereas disorganized systems and processes can lead to inefficiencies and confusion.
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Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase the value of her house according to a local appraiser. How much of the capital asset is deductible in Janet’s tax return as a medical expense? Is deductible in the current year as an expense before the AGI limitation?
Answer:
$10,000
Yes
Explanation:
Based on the information given the amount of the capital asset that is deductible in her tax return as a medical expense will be the amount of $10,000 which represent the amount that was spent on the elevator seat which tend to exceeds the increase in value of her house.
YES the deductible in the current year is an expense before the AGI limitation reason been that the amount of 10,000 is been deductible in the current year as an expense before the 10 percent AGI limitation.
Write an essay of about 2,000 words in length critically discussing the issues concerning the new IFRS 15 Revenue from Contracts with Customers standard for both - preparers and users of financial information.
For your essay:
• You must utilise the relevant literature to demonstrate your understanding related to revenue recognition accounting standard.
• Your essay must provide a good synthesis as well as critical analysis.
• Wherever possible, demonstrate your point(s) with brief, but relevant examples
The central principle of IFRS 15 is revenue is recognized when the goods or services are transferred to the consumer at the contract price.
What do you mean by Revenue?Revenue is the money earned by the organization from business operations.
To write an essay on issues concerning the new IFRS 15 Revenue from Contracts with Customers standard for both - preparers and users of financial information.
1. First think about the topic given.
2. Outline some primary ideas for your essay.
3. Research the topic.
4. Write an introduction to the topic.
5. Start writing the main body by keeping the outline in mind.
6. Write a conclusion.
Therefore, By this method, you can write an essay.
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send your client an email with a project and risk status. You ask for feedback on project performance. Which best practice should you adhere to when using email to communicate?
Explanation:
Get to the point quickly and be concise., but don't be impersonal or abrupt. Keep your sentences short and clear. Include everything your client needs to know in the email. If you're just providing information and don't need a response, write “No response needed” at the end of the email.
Answer: Take time to write a clear message
Explanation:
Your receiver needs to know what are you writing about.
analyze transaction using t-account:
She invested cash of P500,000 and Furniture
and Fixtures of P175,000.
Effects of transactions:
Dr. Pajanustan invested cash and furniture and fixtures to start the consultancy firm.
The firm purchased a computer, office supplies, accounting software, and equipment, incurring both cash payments and credit.
The firm provided tax services and seminars, earning cash.
The firm paid for staff salaries, rent, utilities, and personal withdrawals by the owner.
The firm made payments on credit purchases and received payments from clients on credit.
The firm incurred expenses for supplies and returned defective furniture.
Copy clear format:
The transaction details are provided in a clear and organized manner.
T-Account:
T-accounts are a visual representation of individual account balances, showing debit and credit entries.
For example, the account for Cash would have debit entries for payments made and credit entries for cash received, resulting in a final cash balance.
Similarly, accounts for accounts payable, accounts receivable, and owner's equity would reflect the changes in their balances due to the transactions.
Journal Entries:
Journal entries are the recording of the transactions in a company's books of accounts, typically in a general journal.
Each transaction would be recorded as a debit to one account and a credit to one or more accounts, depending on the nature of the transaction.
Posting to the Ledger:
Posting to the ledger is the process of transferring the journal entries to the individual accounts in the ledger.
The ledger is where all the account balances are recorded and updated.
The ledger account would be updated with the debit and credit entries from the journal entry, resulting in an updated account balance.
Trial Balance:
A trial balance is a listing of all the accounts and their balances, used to ensure that the total debits equal the total credits.
A trial balance provides assurance that the entries made in the general ledger are mathematically accurate, and can be used to identify errors.
Income Statement:
An income statement, also known as a profit and loss statement, presents the revenues and expenses of a company over a certain period of time, typically one month or one year.
The difference between the revenues and the expenses gives the profit or loss of the company for that period of time.
It is important to note that this information provided is based on the given transactions, and may not reflect the actual process of journal entries, posting to ledger, trial balance, and income statement. Also, to generate a specific financial statement, further classification and adjustments entries would be need it to be done.
The following labor standards have been established for product of
16 hours 12.75 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 6,600 hours
Actual total labor cost $131,340
Actual output 1,600 units
1. What is the labor rate variance for the month?
2. What is the labor efficiency varaiance for the month?
Answer and Explanation:
The computation is shown below:
a. The labor rate variance is
= actual labor cost - (standard rate × actual hours)
= ($131,340) - ($12.75 × 6,600 hours)
= $47,190 unfavorable
b. The labor efficency variance is
= (actual hours - standard hours) × standard rate
= (6,600 - (1,600 × 16) × $12.75
= $242,250 favorable
In this way it can be calculated and the same is to be considered and relevant
Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows:
Initial investment (for two hot air balloons) $510,000
Useful life 9 years Salvage value $51,000
Annual net income generated 40,290
BBSâs cost of capital 9%.
Assume straight line depreciation method is used.
Required:
Help BBS evaluate this project by calculating each of the following:
a. Accounting rate of return.
b. Payback period.
c. Net present value (NPV).
d. Recalculate the NPV assuming BBS's cost of capital is 15 percent.
Answer:
a. 0.17556 = 17.56%
b. 5.59 years
NPV when I is 9% = $60,787.91
NPV when I is 15% = $-59,904.72
Explanation:
Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
($510,000 - $51,000) / 2 = $229,500
40,290 / $229,500 = 0.17556 = 17.56%
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 = net income + depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($510,000 - $51,000) / 9 = $51,000
Cash flow = $51,000 + 40,290 = $91,290
$510,000 / $91,290 = 5.59 years
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-510,000
Cash flow in year 1 to 8 = $91,290
Cash flow in year 9 = $91,290 + $51,000
NPV when I is 9% = $60,787.91
NPV when I is 15% = $-59,904.72
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Vandelay Industries has a target capital structure consisting of 40% debt, 5% preferred stock, and 55% common equity. Vandelay has 20-year, 11% semiannual coupon bonds that sell at their par value of $1,000. The component cost of preferred stock is 12.4%. Vandelay is a constant growth firm that recently paid a dividend of $2.05, sells for $27.00 per share, and has a growth rate of 7%. Flotation costs on new common stock are 10%, and the firm's marginal tax rate is 25%. What is Vandelay Industries’ WACC assuming they will have to use internal equity?
a. 13%
b. 12.24%
c. 12.74%
d. none of these choices
Answer:
b. 12.24%
Explanation:
The computation is shown below;
The cost of debt is 11%
As when the bonds would be sell at par value so yield to maturity = coupon rate = cost of debt i.e. 11%
Now
cost of equity= ((Do × (1+g)) ÷ P)+g
= (($2.05 × (1 + 7%)) ÷ 27) + 7
= 15.12%
Now
WACC = weight of equity × cost of equity + weight of preferred equity × cost of equity + weight of debt × cost of debt × (1 - tax rate)
= 55% × 15.12% + 5% ×12.4% + 40% × 11% × (1 - 25%)
= 12.24%
Select all the correct locations on the image.
On the tax bracket table, choose all the marginal tax rates that will apply to a single taxpayer with a taxable income of $75,000.
We can see from the chart that the tax rate, given a person with taxable income of $75000, will be 22%.
Taxable income is what?A person's or an organization's taxable income is their gross income less any legal tax deductions. The amount of revenue an entity generates annually is what the government taxes. It can also be stated as the portion of income that is subject to income tax.
It may include all or a portion of the income, and it is reduced by other deductions and outgoings. Different sums are included as income, expenses, and other deductions depending on the nation and its system.
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The MAIN purpose of a frequency distribution is to ___________. a. plan a statistical project and assign tasks to workers, b. organize raw data, c. provide a graphical illustration of date relations, d. identify changing trends over time
The main purpose of a frequency distribution is to organize raw data (b).
A frequency distribution is a tabular summary of data that shows the frequency, or number of occurrences, of different values within a dataset. It is used to organize and analyze large amounts of data in a clear and concise manner.
For example, if you were conducting a survey to gather data on the number of hours that people work per week, you could use a frequency distribution to organize the data and see how many people work different ranges of hours (e.g., 0-10 hours, 11-20 hours, 21-30 hours, etc.).
Option a, planning a statistical project and assigning tasks to workers, is not the main purpose of a frequency distribution.
Option c, providing a graphical illustration of data relations, is not an accurate description of a frequency distribution.
Option d, identifying changing trends over time, is not the main purpose of a frequency distribution, but it can be used to identify trends if the frequency distribution is created for different time periods.
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For each separate case, record the necessary adjusting entry.
1. On July 1, Lopez Company paid $1,800 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31.
2. Zim Company has a Supplies account balance of $6,200 at the beginning of the year. During the year, it purchased $2,600 of supplies. As of December 31, a physical count of supplies shows $1,100 of supplies available.
Answer:
Item 1
Debit : Insurance $1,800
Credit : Prepaid insurance $1,800
Item 2
Debit : Supplies expense $7,700
Credit : Supplies $7,700
Explanation:
In 2020, Simon, age 12, has interest income of $7,980 from funds he inherited from his grandmother and no earned income. He has no investment expenses. His parents have taxable income of $82,250 and file a joint return. Assume that no parental election is made.
a. Simon's net unearned income is $________ ?
b. Simon's allocable parental tax is $________ ?
c. Simon's total tax is $________ ?
Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of $480,000 during the current year, and Stanton reports $264,000. Stanton sold inventory costing $28,800 to Premier (upstream) during the year for $57,600. Of this amount, 25 percent is still in ending inventory at year-end. Total receivables on the consolidated balance sheet were $81,800 at the first of the year and $119,100 at year-end. No intra-entity debt existed at the beginning or end of the year. Using the direct method, what is the consolidated amount of cash collected by the business combination from its customers
Answer:
$649,100
Explanation:
Calculation to determine the consolidated amount of cash collected by the business combination from its customers
Using this formula
Consolidated amount of cash collected=Premier Sales+Stanton Sales-Inventory-(Ending Total receivables- Beginning Total receivables)
Let plug in the formula
Consolidated amount of cash collected=($480,000 + $264,000-$57,600)-($119,100-$81,800)
Consolidated amount of cash collected= $686,400 -$37,300
Consolidated amount of cash collected== $649,100
Therefore the consolidated amount of cash collected by the business combination from its customers is $649,100
Garcia Company has 10,500 units of its product that were produced last year at a total cost of $157,500. The units were damaged in a rainstorm because the warehouse where they were stored developed a leak in the roof. Garcia can sell the units as is for $2 each or it can repair the units at a total cost of $18,500 and then sell them for $6 each. Calculate the incremental net income if the units are repaired
Please suggest a sampling method to have a sample size of 100 samples from a total of 500 students (in which: 200 Business Administration students, 150 Languages students and 150 IT students). It is required that each member have an equal chance of being selected and that the sample contains enough students from the 3 majors mentioned
One sampling method that could be used to select a sample of 100 students from a total population of 500 students with three different majors (Business Administration, Languages, and IT) is simple random sampling. In simple random sampling, each member of the population has an equal chance of being selected for the sample.
To implement this sampling method, you could follow these steps:
List all 500 students in a table, including their major (Business Administration, Languages, or IT).Assign a unique number to each student (e.g. 1 to 500).Use a random number generator or a table of random numbers to select 100 numbers between 1 and 500. These numbers will correspond to the students who are selected for the sample.Check the list of students to see which students have been selected based on the numbers that were generated. These students will be included in the sample.This sampling method will ensure that each student has an equal chance of being selected for the sample, and it will also ensure that the sample contains enough students from each major.
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Daft is a product of the Digby company. Digby's sales forecast for Daft is 506 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Daft's Production After Adjustment have to be in order to have a 10% reserve of units available for sale
Explanation:
sales forecast for Daft is 506 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Daft's Production After Adjustment have to be in order to have a 10% reserve of units available
Mr X offers Mango for sale to Y at a price of Tk8500 per ton. Initially, Mr. Y accepts X’s offer. But with certain changes in the market situation Mr.Y wants to revocation of the offer and acceptance. Explain how Mr. Y revoked this offer
Mr. Y can revoke an offer by communicating to Mr. X that he no longer wishes to proceed with the sale of mangoes at the agreed-upon price of Tk8500 per ton, which can be done in person, over the phone, or in writing.
What is the definition of revoking an offer?Revocation of an offer occurs when the offeror withdraws the offer before the offeree accepts it. Thus, even if the offeror has already promised to keep the offer open, he can revoke it. The only time this will not occur is if the offeror received compensation to keep the offer open.
It should be noted that an offer can only be withdrawn before it has been accepted. Once an acceptance is communicated, the offer is considered binding and cannot be withdrawn. As a result, it is critical that Mr. Y communicates his rejection of the offer before Mr. X accepts it.
It is also worth noting that even if an offer has not yet been accepted, it can be terminated or become void in certain circumstances. For example, if the offer specifies a time limit for acceptance that expires, the offer is no longer valid. Similarly, if the offer's subject matter is destroyed or becomes unavailable, the offer may be terminated.
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The negative side of miscommunicating
Answer:
Miscommunication has many downsides but one of the most important ones to remember is misunderstanding. Not communicating well with the other side would mean that they do not fully understand or grasp what you are trying to say, which can lead to future arguments, upset and negative feelings, or hurt feelings.
Explanation:
There ya go! Hope this helps
Answer:
A lack of knowing leads to negativity. When people don't have the information or knowledge they feel they need, low productivity results. ...
Employee mistrust, absenteeism and low morale. ...
Bad interpersonal relationships. ...
The “Grapevine Effect”
Failure to communicate in even the smallest of ways can lead to huge delays in project deadlines, tense business relationships and lost profits. Being able to adequately understand, avoid and remedy miscommunications in a business setting could save a business from all these headaches.
Explanation:
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During the late 70s and early 80s, the U.S. economy faced an inflationary period. The chairman of the Fed at that time, Paul Vocker, pursued a monetary policy to reduce inflation in the long run. The principal method used by the Federal Reserve to change the money supply is through open market operations. (a) Which policy would accomplish the Fed's goal to reduce inflation (buy or sell bonds) in the long run
Answer: Sell bonds
Explanation:
One reason there could be inflation in an economy is the high supply of money in the economy. With a high supply, people would have more money and so would demand more goods and services which would take the prices of those goods and services up thereby causing demand pull inflation.
If the Fed wants to reduce this inflation, they need to reduce the amount of money in the economy. They will do this by selling bonds to the public who will then pay in cash which the Fed will then take out of circulation thereby leading to a lower money supply and theoretically, less inflation.
dentify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. - Separate legal entity C. Taxable entity resulting in additional taxes B. Continuous life - Unlimited liability of owners C. Government regulation - Separation of ownership and management B. Ability to acquire capital B. Ease of transfer of ownership
Answer:
1. Separate legal entity ⇒ ADVANTAGE
This is an advantage because it means that the owners are not liable for the actions of the company. If the company goes bankrupt for instance, they will not have to pay for it with their own finances.
2. Taxable entity resulting in additional taxes ⇒ DISADVANTAGE
Anything that results in corporations having to pay more taxes is disadvantageous from their point of view.
3. Continuous life ⇒ ADVANTAGE
This is an advantage because it makes accounting for the company easier as well as giving investors more stability in their planning.
4. Unlimited liability of owners ⇒ NOT APPICABLE.
This is not applicable to Corporate ownership but rather to sole proprietorship.
5. Government regulation ⇒ BOTH ADVANTAGE AND DISADVANTAGE
This can be both an advantage and a disadvantage. On the one hand, it can lead to the industry functioning effectively but on the other hand, it could stifle growth with restrictive policies.
6. Separation of ownership and management ⇒ DISADVANTAGE
This is a disadvantage because it gives rise to the Agency problem where management might try to act in their own best interests instead of that of the owners.
7. Ability to acquire capital ⇒ ADVANTAGE
Corporations are better able to acquire capital which is good because it means that they will be able to invest and embark on more projects.
8. Ease of transfer of ownership ⇒ ADVANTAGE
Owners of corporations especially the public ones, are able to transfer ownership quite easily to others through the sale of shares.