Answer:
Three core financial implications of the business model are:
1) Profitability of the business model: Profit is the difference between the output value (Sales or Service Revenue) and the input value (Cost of goods sold and expenses).
2) Required Assets for the business model: Each business model dictates the investments in assets that will be required to generate returns. Some businesses require large assets investments while others are less capital-intensive and as a result require less capital, but perhaps more labor. An example is an IT industry that provides software services. The capital outlay is not usually large unlike in the case of a computer hardware manufacturing entity.
3) The growth speed is another important factor that determines the outcome of each business model. Some business models are based in high-growth industries. The risk for such industries and business models is that the rate of extinction is also very high. There will always be a higher constant need for renewal in high-growth industry than in a low-growth and more sustainable industry. Growth factor is an important ingredient in determining the business model to adopt.
Explanation:
Business models are different, from one industry to another, and from one firm to another. As the company's core strategy for achieving profitability, business models are based on two core levers of pricing and costs. These dictate if a business model will succeed or not.
David Fisher, a recently retired corporate executive, is becoming restless in his new role and would like to make this transition smoother by participating in the business community in some limited manner. Since David is financially secure and primarily interested in some sort of volunteer work, he should consider becoming involved with which of the following SBA programs?
a. ACE
b. SBIC
c. SBDC
d. SBI
e. SCORE
Answer:
E. Score
Explanation:
"XYZ Corporation announces a 10% stock dividend, followed by a 5% "spin off" of a subsidiary business. A customer who owns 200 shares of XYZ will receive:"
Answer:
20 shares of XYZ and 11 shares of the spin-off
Explanation:
The 20 shares of XYS comes from
= 200 shares × 10%
= 20 shares-
So, the total number of shares now is
= 200 shares + 20 shares
= 220 shares
And there is 5% spin off
So, the number of shares contains spin off is
= 220 shares × 5%
= 11 shares
This represents the separate company
hence, there is 20 shares of XYZ and 11 shares of the spin-off
Suppose the United States can produce 2,000 cars or 2,000 trucks. Japan can produce either 2,000 cars or 1,000 trucks. In terms of car production, we can conclude that
Answer: Japan has a Comparative Advantage
Explanation:
The country that has a Comparative Advantage in the production of a good is the one that has to give up less of another good to produce it. In other words, it is the country with a lower Opportunity cost.
The United States can either produce 2,000 cars or 2,000 trucks. This means that to produce 1 car the US foregoes;
= 2,000/2,000
= 1 Truck
Japan can either produce 2,000 cars or 1,000 trucks. This means that for every car produced the Japanese forgo;
= 1,000/2,000
= 0.5 trucks.
The Opportunity cost for the Japanese is less for producing cars so they have the comparative advantage.
The Allowance for Bad Debts account has a credit balance of $9,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging−of−receivables method, the company's management estimates that uncollectible accounts will be $14,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet?
Answer:
$14,000
Explanation:
balance of account for doubtful accounts account = $9,000 (credit balance)
estimated collectible accounts = $14,000
the adjusting entry should be for = $14,000 - $9,000 = $5,000
December 31, 202x, bad debt expense
Dr Bad debt expense 5,000
Cr Allowance for doubtful accounts 5,000
Since the company uses the aging-of-receivables method, the balance sheet must report the amount determined using it.
What is the gain or loss from purchasing a call option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 points) and a premium of 1.5 points ($1,500) with an expiration date at the end of July if the end-of-July selling prices for the bonds is $80,000
Answer:
Profit of $8,500
Explanation:
Strike Price = $90,000
Premium = $1500
When Break even point = Strike price - premium
Break even point = $90,000 - $1,500
Break even point = $88,500
Hence, Profit = Break even point - Share price
Profit = $88,500 - $80,000
Profit = $8,500
The strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as
Answer:
Dumping
Explanation:
Dumping is protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market. Dumping is usually associated with a substantial volume of export of a product, it often endangers the financial viability of the product's manufacturer or producer in the importing nation.
ABC Corporation has just completed an IPO raising $100 million. The investment bankers handling the offering made total commissions of $4 million. It is most likely that this was A) a firm commitment underwriting. B) a standby underwriting. C) a best efforts underwriting. D) an all or none underwriting.
Answer:
B) a standby underwriting.
Explanation:
This is because, the investment bankers handling the ABC Corporation IPO (Initial Public Offering) listing and selling of shares would have entered into standby underwriting where they made promises to purchase whatever that remain if they were not able to complete the shares selling to the public. Fortunately, it was successful executed hence the reason why they were able to earn a commission of $4 million.
A fund starts with a zero balance at time zero. The fund accumulates with a varying force of interest : δ t = 2 t t 2 + 1 for t > 0 A deposit of $100,000 is made at time 2. Calculate the number of years from the time of deposit for the fund to double.
Answer and Explanation:
Given function
S(t) =2t/t²+1 where t > 0
and fund accumulates with a varying force of interest.
and $100,000 is deposited at time 2.
Number of years it will take from the time of deposit for the fund to double,
Substituting t in the formula given that t is 1 because t>0 and deposit begins to grow from time of deposit 2
= S(t)= 2*1/1² + 1=1
Therefore time it will take for funds to double is 1 year from time of deposit
what is trade in economics
Answer:
Trade is a basic economic concept that involves the buying and selling of goods and services, in which compensation is paid by a buyer to a seller, for goods or services or the exchange of goods or services between parties(which is known as trade by barter )
Explanation:
Answer: Trade means we give some thing for some thing else
memorandum of association can be amended by
Answer:
Explanation:
A company's Memorandum of Association may be changed by the shareholders passing a special resolution in a general meeting or by written resolution. A copy of the resolution must be sent to Companies House within 15 days.
If at the end of Year 1 an appraiser provides a certified opinion that the market value of the land is $2,800 the company would continue to list the land on its books at $2,200. This statement is
Answer:
True
Explanation:
Based on the information given the statement is TRUE because if an appraiser which is person whose job and responsibility is to help assess the market value of things which is the amount in which a product can be sold had provide an approved and acceptable opinion that the market value of the land is the amount of $2,800 which means the company would continue to list the land on its books at the amount of $2,200 reason been that the amount of $2,200 is the book value of the land or the cost of purchasing the land while the amount of $2,800 is the market value which will enable the company to make a gain or profit of $600 ($2,800-$2,200) if the land was been sold for the amount of $2,800.
creases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is a(n) Blank 1 of 1 by owners.
Complete Question:
Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is a(n) ________ by owners.
Answer:
Investments by owners.
Explanation:
Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is an investment by owners.
An owner investment can be defined as the amount of assets that is invested into a company by the owner or founder as a startup or for its smooth operations.
Generally, this type of account has a credit balance and is typically a temporary equity account.
Historical evidence on the returns of large portfolios of stock and bonds shows that investments with higher volatility have rewarded investors with higher returns.
a. True
b. False
Answer:
true
Explanation:
investments with higher volatility helps in achieving higher returns by the investors and this will helps to boost the the organization morale
It should be noted that Historical evidence on the returns of large portfolios of stock and bonds shows that investments with higher volatility have rewarded investors with higher returns.
The process of taking care of the partnership's outstanding obligations and distributing any remaining assets:
a. Winding up Operation of law
b. Dissolution
c. Alienation
d. Acts of the parties Futility
Answer:
Winding up
Explanation:
Winding up in partnership is a post dissolution procedure that entails the distribution and liquidation of any remaining partnership property and assets, settling outstanding debts owed to non partners and sharing of remaining assets among the remaining partners.
The five guiding steps to winding up partnership are
Review partnership agreementDiscuss the decision to wind up with partnersFill a dissolution formNotify concerned partiesSettle and close out all account,Question 1 of 15 A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this
Answer:
a 20 year level term policy
Explanation:
A level term policy is meant to insure a certain benefit for a specific period of time. During this time, the premium is also fixed (level) which means that it will not change as time passes. A level term policy is adjusted only after it has expired and it is generally adapted upwards since the age of the insured person increased as well as the possibility of death.
An example of a firm with market power is a delicatessen in New York. cable TV provider in Tulsa. clothing store in Chicago. family farm in Kansas.
Answer: cable TV provider in Tusla
Explanation:
Market power simply refers to instances whereby organizations, companies or group of companies raise the prices in the market above the equilibrium level. This is done by companies that have huge capital base and hence send out other competitors.
An example of a firm with market power is cable TV provider in Tusla.
What is the term used for the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process?
Answer:
Materials management
Explanation:
Materials management is the continuous supply or provision of materials required to produce goods in a manufacturing company.
The purpose of materials management is to ensure that there are no interruption or delay in the supply of quality raw materials needed for production purposes . This is because if there are interruptions in the supply of materials , such may affect the expected output of the organization hence results in lower profit . The portion of the market controlled by the organization may be affected as well including their brand reputation.
Bronson Corporation incurs the following annual costs in producing 30,000 video cards for computers: However, if Bronson purchases the video cards from another company at a cost of $10 per card, what would be the increase (decrease) in net income if no fixed costs can be eliminated?
Answer: ($60,000)
Explanation:
Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:
= $60,000 + $80,000 + $100,000
= $240,000
The relevant costs that will be bought will be:
= 30,000 × $10
= $300,000
Therefore there'll be decrease in net income by:
= $300,000 - $240,000
= $60,000
The answer will be ($60,000)
"A young widow who works has a $750,000 net worth and a securities portfolio valued at $200,000. The current asset allocation of the portfolio is 80% equity securities; 8% fixed income securities; and 12% money market securities. In which circumstance should she consider reallocating her portfolio?"
Answer: C. If she becomes unemployed during a recessionary period
Explanation:
If the young widow becomes unemployed during a recessionary period, she would need regular income and as it is a recession, companies might be feeling the heat so she might not get any from her Equity positions.
She would need to reduce her equity holdings and increase her fixed income and money market securities as they offer more stable and regular income that she can withdraw.
6. The EPA has a green building benchmark program in which buildings submit energy data about their building to see where they stand among like building in the country with regards to energy use. This program is known as:
Answer:
Energy Star Portfolio Manager
Explanation:
The Energy Star Portfolio Manager is available online and there you can check and compare how "green" a building or group of building is compared to others. Several environmentally issues are measured by this program, e.g. energy or water consumption, waste disposal, etc.
f Italy can produce 100,000 more pounds of chocolate every year by forgoing the production of 200,000 pounds of pasta, what is the opportunity cost of 1 pound of chocolate
Answer: ADD 100,000+200,000+1 pound which is 16 to get your answer and it would be
Explanation: 300,016 that is your answer is this helpful??
Which of the following is a long-run adjustment? A firm lays off two workers. Two firms exit the asbestos removal industry.
Answer:
Two firms exit the asbestos removal industry.
Explanation:
This is a long-run adjustment because, the firm left one industry to focus on other part of their business. For example, it could be due to lack of finance or profit margin been small that made the firm to quit asbestos removal industry.
Karen just finished typing an important memo that she needs to send to many people, including the president of the company. Karen should _____.
Answer:
C. proofread her work carefully, ask a coworker to look it over, and correct all mistakes
Explanation:
Since in the question it is mentioned that Karen just finished the typing for an important memo and wants to send to many persons involved the president of the company
So here karen should proofread her work carefully and if it involved any kind of mistake that it should be corrected so that it would not create a bad presentation to the many people
Hence, the correct option is C.
Peterson Manufacturing and the local steelworkers' union are having a negotiation breakdown. Peterson's management is keeping employees out of the workplace and running the operation with temporary replacements. Which type of strategy is most likely being used to overcome the negotiation breakdown
Answer:
B) lockout
Explanation:
Since in the question it is mentioned the manufacturing Peterson and the local steelworkers contain the negotiation breakdown also is keep out of the work place and runs the operations with non permanenet replacements
So here to overcome this breakdown, the lockout strategy is used
And all other given options are wrong.
Deciding which car to buy requires thinking; critical thinking, however, involves considering multiple choice how to finance the car. whether it would be a more environmentally sound choice to ride a bike. whether you have good reasons for choosing a particular car. whether you need a car at all.
Answer:
whether you have good reasons for choosing a particular car.
Explanation:
When deciding which car to buy, it is necessary for an individual to adopt critical thinking in order to decide what are the reasons that will lead him to choose a particular car.
Critical thinking will help to identify whether the features and benefits of a car model are aligned with issues relevant to the consumer, such as price, costs, design, style, etc.
The consumer when deciding to buy something goes through different stages in the purchase decision process, which is identifying needs, searching for information on solutions to their problem, analyzing the available options and purchasing. By following these steps, it is possible to develop critical thinking that will lead the consumer to make an accurate and effective purchase to satisfy their needs and desires.
Based on the following information, calculate net income for Dana's Dress Shop using the traditional format. Sales $360,000 Gross Margin $140,000 Contribution Margin $110,000 Total Selling & Administrative Exp. $60,000
Answer:
$80,000
Explanation:
Calculation for the net income for Dana's Dress Shop using the traditional format
NET INCOME USING TRADITIONAL FORMAT
Using this formula
NET INCOME=Gross Margin -Total Selling & Administrative Expenses
Where,
Gross Margin =$140,000
Total Selling & Administrative Expenses=$60,000
Let plug in the formula
NET INCOME=$140,000-$60,000
NET INCOME=$80,000
Therefore the NET INCOME will be $80,000.
Answer: 80k
Explanation: Bc quizlet said so :)
The company that you are working for has a highly available architecture consisting of an elastic load balancer and several EC2 instances configured with auto-scaling in three Availability Zones. You want to monitor your EC2 instances based on a particular metric, which is not readily available in CloudWatch. What is a custom metric in CloudWatch which you have to manually set up?
Answer:
Memory Utilization of an EC2 instance
Explanation:
An EC2 instance is a server that is in terms of virtual in the Amazon Elastic Compute Cloud (EC2) to run the applications over the web services. It is a platform that should be cloud computing for permitting the subscribers of the business in order to run the programs related to the applications
Therefore according to the given situation, the custom metric that should be manually set up is utilization of the memory for EC2 instance
What is the yield to maturity of a bond that as a face value of $1,000, is currently selling for $980, has a 5% coupon (paid semi-annually) and matures in 5 years.
Answer:
5.47%
Explanation:
The computation of yield to maturity is shown in the attachment:
Given that
FV = $1000
PV = ($980)
PMT = 5% ÷ 2 × 1,000 = $25
Number of years = 5 years × 2 = 10 Years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the yield to maturity is
= 2.73 × 2
= 5.46%
Therefore with the help of spreadsheets (as attached), we could explain in a better manner.
A movie star was paid $1 million in 1960 to do a movie. The CPI was 29.3 in 1960 and the CPI in 2014 was 240. Approximately how much did the movie star earn in 2014 dollars
Answer:
$8.19 million
Explanation:
A movie star was paid $1 million in 1960 to do a movie
The CPI was 29.3 in 1960
The CPI in 2014 was 240
Therefore the amount that was earned in dollars by the movie star in 2014 can be calculated as follows
= 240/29.3
= 8.19 × $1 million
= $8.19 million
Hence the movie star earned $8.19 million in 2014
You view tea and scones as perfect complements, and you prefer to consume one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis. If you presently have 1 cup of tea and 3 scones, what this the marginal rate of substitution (MRS) at this point
Answer:
Infinity
Explanation:
The marginal rate of substitution means the consumer has forgone a certain quantity of one item in exchange for another whilst keeping the equal level of utility.
When two items were viewed (tea and scones), a certain amount of tea was forgone in exchange for scones. Now on the indifference curves, where the tea is on the vertical axis and the scones is one the horizontal axis, the marginal rate of substitution (MRS) at this point will be infinity