Cash advances require a lot of paperwork and are generally difficult to get is a disadvantage to only using cash to make purchases.
cash is felony gentle—forex or coins—that may be used to change items, debt, or offerings. every so often it also includes the fee of belongings that may be effortlessly converted into cash immediately, as reported with the aid of an employer.
Cash is the quantity of real cash an enterprise has at its disposal. it's miles are labeled on the balance sheet as a modern asset, which means it's miles in all likelihood for use within the subsequent 365 days, and is commonly held in bank money owed. money or its equal (consisting of a check) paid for goods or services at the time of purchase or delivery. coins. it's a shop of price. coins is extra than only a charge instrument. It permits humans to preserve money for saving functions without default chance. it is useful for a small man or woman-to-character presents and bills.Learn more about cash here: https://brainly.com/question/24179665
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Disclaimer: The question is incomplete. Please read below to find the missing content.
Which of the following is not a disadvantage to cash advances on a credit card?
a.
Cash advances are similar to loans in that they need to be paid back with interest.
b.
Cash advances require a lot of paperwork and are generally difficult to get.
c.
Cash advances are often the last thing to be paid when paying off your credit card.
d.
Cash advances often come with an interest rate much higher than your credit card.
john earned a phd in biomedical engineering, and works full-time as a faculty member at the local university. he also does some private consulting work on the side. he would like to give up teaching and do consulting full-time, but he fears there isn't enough demand for it. when computing the official unemployment rate, john is considered:
John would like to stop teaching and focus only on advising, but he is concerned that there would be insufficient demand. When calculating the official unemployment rate, John is deemed employed.
'Demand' is the very first and most fundamental idea that we study in Economics. Demand is defined as the ability and desire of the general population to purchase a good or service. Demand is a microeconomic variable that deals with the 'what is likely to happen' component of the economy. According to the chapter, demand is a crucial subject for Commerce students. Everyone, regardless of field of study, needs to have a basic understanding of demand. In economics, 'demand' refers to a consumer's ability and desire to acquire a good or service. It is the primary driver of a country's economic growth. Other economic activity will become irrelevant without it.
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before kyah was hired at ac technologies, marcus was the only person in the office with detailed knowledge of the computerized inventory control system. since kyah is now equally familiar with the system, marcus has found that his level of expert power within the organization has decreased due to which factor?
The level of expert power for Marcus ad decreased due to the substitutability factor in the organization.
In the field of business, when a person working in an organization has a threat from another worker who is equally skilled to him then such a phenomenon is referred to as substitutability.
Substitutability refers to the act of being replaced by a person who is of equal value to you.
In the case above, Kyah is a substitute for Marcus as she has the same computerized knowledge as him. Hence, the level of expert for Marcus has decreased because of a substitute being present in the company now.
Although a part of your question is missing, you might be referring to this question:
before Kyah was hired at ac technologies, Marcus was the only person in the office with detailed knowledge of the computerized inventory control system. since Kyah is now equally familiar with the system, Marcus has found that his level of expert power within the organization has decreased due to which factor?
substitutability
threat
competition
reliability
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kata company uses the allowance method. on may 1, kata wrote off a $22,000 customer account balance when it becomes clear that the specific customer will never pay. the journal entry to record the write-off on may 1 would include which of the following? multiple choice debit to allowance for doubtful accounts and credit to accounts receivable. debit to bad debt expense and credit to allowance for doubtful accounts. debit to allowance for doubtful accounts and credit to bad debt expense. debit to accounts receivable and credit to allowance for doubtful accounts.
credit to accounts receivable and debit
What does it mean to credit accounts receivable?A business's debt to a customer is shown by a credit balance in its accounts receivable. This can happen if a client has given you more money than the present invoice calls for. A Payable account's negative balance indicates that the business owes money, whereas a Payable account's credit balance indicates that the business is being paid. As a result, the accounts payable balance is typically negative. Accounts payable for a business are any unpaid debts that are due soon. Debits raise the balances of asset, loss, and expenditure accounts, while credits lower them. Debits reduce income, liability, equity, and gain accounts while credits raise them.
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on-a-roll, inc. amortizes its patent of $20,000 over 20 years. the adjusting entry to record amortization results in a(n) . (check all that apply.) multiple select question. increase to liabilities on the balance sheet decrease to net income on the income statement increase to net income on the income statement decrease to assets on the balance sheet increase to assets on the balance sheet
On-a-roll, inc. amortizes its patent of $20,000 over 20 years. the adjusting entry to record amortization results in a decrease in net income on the income statement decreased to assets on the balance sheet.
Amortization is an accounting approach used to periodically lower the book cost of a loan or an intangible asset over a fixed time frame. regarding a mortgage, amortization focuses on spreading out mortgage bills through the years. whilst applied to an asset, amortization is just like depreciation.
An organization may additionally amortize the price of a patent over its beneficial existence. Say the organization owns the extraordinary rights over a patent for 10 years, and the patent isn't always to resume on the give up of the duration.
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If the annual interest paid on a $500 loan is $25, the nominal interest rate is _____ percent per year. If the nominal interest rate is 5 percent per year and the inflation rate is 2 percent a year, the real interest rate is _____ per year.
If the annual interest paid on a $500 loan is $25, the nominal interest rate is 5 percent per year. If the nominal interest rate is 5 percent per year and the inflation rate is 2 percent a year, the real interest rate is 3% per year.
What is interest rate?
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum).
How to calculate the first question, the nominal interest rate?
Nominal interest rate = interest paid / face value
= 25 / 500 = 0.05 = 5%
How to calculate the second question, the real interest rate?
Real interest rate = nominal interest rate - inflation
= 5% - 2% = 3%
Therefore, the nominal interest rate is 5% per year and the real interest rate is 3% per year.
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a is a partnership between two or more firms that is developed to achieve a specific goal, and has no joint ownership involved.
A strategic alliance is a partnership between two or more firms that is developed to achieve a specific goal and has no joint ownership involved. Strategical alliance has several types.
In business area, a strategic alliance generally can be described as an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. There are several types of strategical alliance, such as Joint Venture, Non-equity Strategic Alliance, Equity Strategic Alliance, Standard Cycle, Slow Cycle, and also Fast cycle. The role of strategical alliance is to gain entry to new markets, improve their competitive positioning, etc.
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What is the most likely explanation for Sarah maintaining a log of each time she spends or receives money?
The most likely explanation for Sarah maintaining a log of each time she spends or receives money is: D. preparing a budget to review her expenses.
What is a budget?In Economics, a budget can be defined as a financial plan that is typically used for the estimation of revenue and expenditures (expenses) of an individual, business organization or government in the form of money, especially for a specified period of time, often one year.
In this context, we can reasonably infer and logically deduce that Sarah is keeping a record of the money she either receives or spends in order to enable her prepare a budget with respect to reviewing her daily expenses.
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Complete Question:
What is the most likely explanation for Sarah maintaining a log of each time she spends or receives money?
A. making a note each time she receives money so that she does not forget where it came from
B. making a note of each expense so that she does not repeat purchases
C. preparing a report for her bank on how she spends money
D. preparing a budget to review her expenses
a $130 credit to supplies was credited to revenue by mistake. by what amounts are the accounts under- or overstated as a result of this error?
The number of accounts under- or overstated as a result of this error is overstated $130, fees earned, overstated $130.
By incorrectly registering a debit of $130 withinside the deliver account we're exaggerating the supplies, due to the fact the registration could imply that the organization has $130 in supplies, while in truth it is not.
Credit sales in accounting it will seem like double access for your bookkeeping, with debit and credit scores wanting to be accounted for in addition to receivables and revenue. The asset debts are predicted to have debit balances, even as the legal responsibility and owner's fairness debts are predicted to have credit score balances. Therefore, while an organization earns revenues, it's going to debit an asset account (which includes Accounts Receivable) and could want to credit score every other account which includes Service Revenues.
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which element of a pestel analysis is represented by the use of data mining information from the bureau of labor statistics to gain insight into regional employment figures?
Element of a Pestel analysis is represented by the use of data mining information from the bureau of labor statistics to gain insight into regional employment figures is economic.
A PESTEL evaluation is used to pick out threats and weaknesses which can be utilized in a SWOT evaluation. Political elements include authorities' policies, leadership, and change; overseas change policies; inner political troubles and trends; tax policy; law and de-law trends.
The Bureau of Labor Statistics (BLS) obtains Consumer Expenditure Surveys (CE) Interview Survey and Diary Survey facts through interviewing respondents approximately their expenditures, income, and characteristics. The U.S. Census Bureau selects the samples of family addresses and collects the facts beneath neath agreement with BLS.
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are liquidated damages intended only for missing the completion date of a project, or may they also be established for failure to meet mid-project interface dates?
Liquidated damages are established for both failure to fulfill mid-project interface dates and project completion dates, and are intended in both scenarios. They are recoverable for delays in the remaining work after substantial completion.
Amounts paid by the injured party as compensation for a specific contract formation breach are known as liquidated damages under contract law. These damages are compensated when a contract (or project) is not completed or when the completion deadline is not met.
Liquidated damages are typically tied to the project's "substantial completion date" (typically defined as the point at which the owner can use the project for its intended purpose); consequently, they are not typically enforceable.
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in the video, what do both managers suggest should be done to ensure that effective communication is taking place?
Communication's most crucial component is listening. Understanding spoken or written material is only one aspect of effective listening; another aspect is recognizing the speaker's emotions as they are expressed.
What actions should managers take to enhance the effectiveness of communication inside the company?Managers should promote a two-way communication approach to increase communication effectiveness. Through the use of two-way communication, the recipient can inform the sender whether they have been understood by asking questions, requesting clarification, and expressing opinions.
Why is it crucial for managers to have strong and efficient communication skills?Strong management - Managers are better equipped to manage their teams when they are strong communicators. Being an effective communicator makes it much simpler to delegate tasks, manage conflicts, inspire employees, and develop relationships—all crucial managerial duties.
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an agreement formed by two or more firms, with similar or dissimilar products, to deliver their products via a channel is a
An agreement formed by two or more firms, with similar or dissimilar products, to deliver their products via a channel is a strategic alliances. What exactly are Strategic Alliances.
Strategic alliances are agreements between two or more separate companies to collaborate in the production, development, or sale of goods and services, as well as other economic purposes. Strategic alliances are agreements between two or more separate companies to collaborate in the production, development, or sale of products and services, as well as other economic purposes. Strategic relationships enable a company to reach a larger audience without investing more time and money.
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how is the issue of raising capital a natural barrier to entry for new firms seeking to enter a market?
The issue of raising capital is a natural barrier to entry for new firms because banks and venture capital companies are unlikely to lend to firms with little chance of competing against established businesses.
The barrier to entry of new firms in the market could be the high cost of startups, licenses, government regulations, and other barriers. These barriers are beneficial for the existing firms as these barriers target to reduce the competition for the already established firms.
Capital requirement is one of the major barriers to entry for new firms. From the cost of setups to production and marketing, capital is required at each stage of the business. Since there is no definite guarantee of profits in the market, bank and venture capital companies hesitate to lend the new firms.
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a global u.s. manufacturer decides to open a plant in india. which stage of globalization would this illustrate?
The globalisation of business refers to the process of internationalization, where businesses expand their operations to other countries. This can be done through different methods such as exporting, licensing, franchising, and setting up foreign subsidiaries.
The decision to expand internationally can be a response to different factors such as the desire to tap into new markets, the need to be closer to suppliers or customers, or to take advantage of lower labor costs.
The expansion of a business into India would illustrate the globalization of business, as the company would be expanding its operations into a new country. This would involve setting up a new plant in India, which would require the company to obtain the necessary licenses and permits, as well as to hire local staff. The company would also need to adapt its products and marketing to the local market in order to be successful.
The globalisation of business can have both positive and negative effects on a company. On the positive side, expanding into new markets can lead to increased sales and profits. It can also help a company to become more efficient and to learn new technologies and methods. On the negative side, globalisation can lead to cultural conflict, as well as to environmental and social problems.
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the united states and the european union impose price floors on many agricultural products. these price floors lead to unwanted surpluses. to deal with a surplus: question 6 options: a) the u.s. government typically pays farmers to produce as much as possible. b) the european union pays farm exporters to sell products for a profit overseas. c) the u.s. government in some cases has destroyed the surplus production. d) the u.s. government holds auctions to sell the surplus to the highest bidder.
To deal with a surplus the European union pays farm exporters to sell products for a profit overseas. A sum that is greater than what is required.
A surplus of sth The plant possessed an abundance of components. ACCOUNTING AND ECONOMICS the amount of money left over after products selling more than you acquire or spending less than you receive: The savings will result in a little more than $24 million surplus. When you have more of anything than you need or intend to utilise, you have a surplus. For example, if you cook a meal and there is food left over after everyone has eaten, you have an excess of food.
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imagine that scott has asked your opinion about whether barcelona should try to reduce involuntary turnover. what is an advantage of the current practice of firing a large percentage of employees?
Barcelona can swap out ineffective performers for more potent ones.
What is Barcelona:
Spain's Catalonia region's cosmopolitan capital, Barcelona is renowned for its art & architecture. The city is filled with modernist structures, including the spectacular Sagrada church.
This summer, as Barcelona spent a combined to buy Brazil winger from Leeds United, Poland striker Robert Lewandowski from Bayern Munich, and France center-back Jules from Sevilla, the curiosity has, in certain places, turned into jealously and bitterness. On free transfers, they also acquired Andreas Christensen and Franck Kessie from Chelsea and AC Milan, respectively.
Barcelona is a seaport city that serves as the regional headquarters of northeastern Spain's Catalonia autonomous community and is 90 miles from the French border. It is renowned for its uniqueness, cultural appeal, and physical beauty and serves as Spain's main Mediterranean port and commercial hub.
Barcelona is situated on a plain that is normally bordered by the River (north), the Llobregat Rivers (south), the rock outcrop. Barcelona faces the Mediterranean Sea to the southeast. Barcelona has had to deal with the effects of its strategic position and political implications throughout its history.
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jorgensen company has 10,000 units in its ending inventory. during the year, the company's variable production costs were $10 per unit and its fixed manufacturing overhead application rate was $5 per unit. the company's net income for the year was $15,000 lower under absorption costing than it was under variable costing. given these facts, what was the number of units in the beginning inventory? (assume the company uses normal costing and closes over- and under-applied over directly to cogs, and that the fixed manufacturing overhead application rate is constant from year to year.)
C) 13000 Units is the correct response
because the income under absorption costing is lower, indicating that there were more units in the beginning inventory than there were in the end inventory. number of units in beginning inventory x ending inventory x (decrease in profit x fixed cost of overheads per unit) x (10,000 x 5) x 13000
What effect does inventory have on absorption costing?
Absorption costing shows that ending inventory brings in more fixed costs. Because the expenses that are associated with that inventory are linked to the total cost of the inventory that is still on hand, absorption costing ensures that accounting for ending inventory is more accurate.
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does your brand license trademarks to others who manufacture products associated with your intellectual property?
Owners of brands may rent their software, characters, or patents to other businesses. Licensees have the option of producing goods with the IP on them or reselling the IP for more money.
To do, use, or own something, you need a license (or license) from the brands government.
As a component of an agreement between those parties, a license is given by one party (the licensor) to another party (the licensee). When a government license is required, an application must be submitted in brands order to obtain one. It is by a specific agreement, typically in writing, in the case of a private party. The most basic definition is "A license is a promise not to sue," because a license typically allows the party with the license to engage in an activity that would be illegal and punishable without the license.
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When you consider what product to buy and what price to pay for it, you are
using which of the following processes?
Select one:
O a. the needs versus wants process
O b. the decision-making process
O c. the price versus use process
d. the resource management process
The answer is A
Explanation:
cause u are considering if u need it or not and if u buy it will u regreat it
you are in the process of purchasing a new automobile that will cost you $35,000. the dealership is offering you either a $5,000 rebate (applied toward the purchase price) or 4.5% financing for 60 months (with payments made at the end of the month). you have been pre-approved for an auto loan through your local credit union at an interest rate of 8.0% for 60 months. should you take the $5,000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 4.5% apr?
Instead of $5,000 rebate and finance through your credit union or forgo the rebate ,we should finance through the dealership at the rate 4.5% apr.
1).If we take rebate of $ 5000, we will get the loan at 8% from bank for 5 year
$ 35000 - $ 5000 = $30000
Interest on $30000 at 8% for 5 years
= (1.08)^5
= 1.587
Total amount to be paid
= (30000* 1.587)
= 47610
2.) if we doesn't take the rebate, we will get the loan at 4.5% for 5 years
$35000
Interest on $ 35000 at 4.5% for 5 years
= (1.04)^5
= 1.22
Total amount to be paid
= (35000*1.22)
= 42700
Clearly taking rebate is not beneficial to us.
So it is recommendary to not go for the rebate, rather take the loan at 4.5%
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knowledge check 01 consider the following information: standard rate per direct labor-hour $ 2 standard direct labor-hours for each unit produced 3 units manufactured 1,000 actual direct labor-hours worked during the month 3,300 total actual variable manufacturing overhead $ 6,600 assume that direct labor-hours is used as the overhead allocation base. what is the variable overhead efficiency variance? multiple choice $300 f $300 u $600 f $600 u
If actual direct labor-hours worked during the month 3,300 total actual variable manufacturing overhead $ 6,600 assume that direct labor-hours is used as the overhead allocation base. The variable overhead efficiency variance is: D. $600 U.
How to find variable overhead efficiency variance?First step is to find the standard hour (SH)
Standard hour (SH) = 1,000 units × 3 direct labor-hours per unit
Standard hour (SH) = 3,000 hours
Using this formula to find the variable overhead efficiency variance
Variable overhead efficiency variance = SR × (AH − SH)
Where:
SR = Standard rate
AH = Actual hour
SH = Standard hour
Let plug in the formula
Variable overhead efficiency variance = $2.00 × (3,300 − 3,000)
Variable overhead efficiency variance $2.00 × 300
Variable overhead efficiency variance = $600 U
Therefore we can conclude that the correct option is D.
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Based on the decision in mcnabb v. U. S. , the standard maximum time by which a first appearance should be held has been set at ________ hours after arrest.
The standard maximum time by which a first appearance should be held has been set at 48 hours after arrest as a result of the ruling in McNabb v. U.S.
Arraignment. The arraignment is a defendant's initial court appearance. The defendant has the right to hear the judge read the charges against him or her at this appearance.
United States (1957), which 1) mandates that defendants be brought before a judge or judicial officer as soon as possible after being arrested and 2) orders judges to disregard any confessions or evidence obtained by police during the interim between the defendant's arrest and the defendant's initial appearance hearing.
the defendant's initial court appearance in a criminal case. The defendant is often notified of the allegations against him or her and advised of his or her rights at the initial court appearance. It is the same as arraignment in several states.
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stock y has a beta of 1.35 and an expected return of 13.6 percent. stock z has a beta of .80 and an expected return of 10.7 percent. if the risk-free rate is 4.80 percent and the market risk premium is 7.30 percent, are these stocks overvalued or undervalued?
The risk-free rate and market portfolio return are used to calculate a security's expected return using the capital asset pricing model (CAPM).
It takes into account the beta risk associated with the security. Additionally, it is predicated on the market portfolio being the most effective portfolio.
Both Stock Y and Stock Z are overvalued.
Estimating Stock Y's expected returns:
Y's stock beta is 1.35, and its risk-free rate is 4.80%.
What is CAPM model and its suppositions?
The Capital Asset Pricing Model (CAPM) is a model that explains the connection between the risk of investing in a security and the expected return. It demonstrates that a security's beta-based risk premium and risk-free return are equal to the security's expected return.
How is the capital asset pricing model calculated?
Using CAPM, multiply the volatility, or "beta," by the additional compensation for taking on risk, or "Market Risk Premium," and then add the risk-free rate to that number to get the stock's value.
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at maturity, using the u.s. rule, the interest calculated from the last partial payment is: multiple choice subtracted from adjusted balance added to beginning balance subtracted from beginning balance added to adjusted balance none of these
At maturity, using the U.S. rule, the interest calculated from the last partial payment is subtracted from beginning balance added to adjusted balance.
What is interest?The payment of money above the principal amount (the amount borrowed) at a predetermined rate to a lender or depositor by a borrower or deposit-taking financial institution is referred to as paying interest in the fields of finance and economics. It is different from a fee that the borrower may pay to the lender or another entity. It also differs from a dividend, which is money given to shareholders (owners) by a company from its profit or reserve, but not at a set rate predetermined beforehand, but rather on a pro rata basis as a portion of the rewards received by risk-taking businesspeople when revenue is earned that exceeds all costs.
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true or false: if a real estate development turns out to suffer from a failure of market demand, the developer normally can find ways of correcting or escaping the problem.
If a real estate development turns out to suffer from a failure of market demand, the developer normally can find ways of correcting or escaping the problem. This statement is FALSE.
In the real estate market, each product is different and has a varied value. For instance, two identically constructed houses can differ based on location and how well they have been maintained. Real estate's uniqueness also stems from the fact that it typically serves as the largest asset of its owner. Your home is typically your most valuable item, assuming extreme wealth.
The housing market is quite unpredictable. They could be growing quickly until suddenly everything crashes. Recall the severe recession that began in 2007? Despite the fact that they are not directly related, any movement in the capital markets directly impacts the real estate market. For instance, when interest rates rise, real estate suffers.
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discuss the choices the marketing manager must make in: pricing flexibility price level pricing over the product life cycle
B2B Market segmentation identifies specific target market segments to fine-track marketing, grow sales, and force product development. The distinction between the B2B marketplace and B2C marketplace is B2B stands for enterprise-to-enterprise, regarding a kind of transaction that takes place between one business and another. B2C stands for enterprise-to-consumer, as in a transaction that takes vicinity between an enterprise and a man or woman because of the quit customer.
To do marketing in pricing flexibility, price level, and pricing over the product life cycle, the manager can use the B2B market.
Business-to-business or also known as B2B marketing means the marketing of products or services to other businesses and organizations.
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a problem is listed below. identify its type. craig bought a new boat. he made a 11% down payment. he financed the rest through his bank for 4 years. his bank charged 7% per year compounded monthly and his monthly payments were $200. what was the original price of the boat? a) amortization b) present value of an annuity c) present value d) future value of an annuity e) sinking fund f) none of the above.
If his bank charged 7% per year compounded monthly and his monthly payments were $200, the boat's original cost would be its present value.
A bank is a type of financial institution that offers loans, creates demand deposits from public deposits, and accepts deposits from the general public. The bank can engage in lending directly or indirectly through original cost capital markets.
Most jurisdictions regulate banks heavily because they are crucial to both the financial stability and the economy of a nation. A system known as fractional reserve banking, in which banks hold liquid assets equal to only a portion of their current liabilities, has been institutionalized in the bank majority of nations. Banks are typically required to maintain a original cost minimum level of capital based on the Basel Accords, an international set of capital standards, in addition to other regulations aimed at ensuring liquidity.
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today your company paid a dividend (d0) of $3 per share. the growth rate of the dividend is expected to be 15% for the next two years, and then 6% thereafter. the cost of capital is 10%. for each question, choose the closest answer. 13. what do you expect the dividend to be in three years from now (d3) (to the nearest cent)?
$ 4.0227 is the dividend to be in three years from now (d3) for dividend of $3 per share of growth rate of 15%.
given data,
Dividend (DO) = $ 3.00
Cost of Capital = 10%
Growth Rate (g) is:
First year of Growth Rate = 15%
Second Year of Growth Rate = 6%
Third year of Growth Rate = 10%
Expected Dividend in three years (D3)
D3 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)
D3 = D0* (1.15)* (1.06)* (1.10)
D3 = $3 (1.15)* (1.06)* (1.10)
D3 = $ 4.0227
= $ 4.0227
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if dell buys a computer from a foreign producer for $500 and sells it to best buy for $800, who then sells it to a consumer for $1,200, what is dell's value added, best buy's value added, and the computer's contribution to gdp?
If Dell buys a computer from a foreign manufacturer for $500 and sells it to Best Buy for $800, sells it to a consumer for $1,200, the value added by Dell, Best Buy, and the computer are $300, $400, and $700, respectively.
Manufacturing is the creation or manufacturing of items using equipment, manpower, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the large-scale transformation of raw materials from the primary sector into completed commodities.
Manufacturing engineering is the branch of engineering that plans and optimizes the manufacturing process, or the procedures by which raw materials are transformed into a finished product. The manufacturing process begins with the product design and material specifications. These components are subsequently processed to create the final output.
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subsidiary x, located in a country with a 25% corporate income tax rate, and subsidiary y, located in a country with a 35% corporate income tax rate are part of a decentralized organization. they have been engaged in trade with one another using a negotiated transfer price of $50 per unit for sales by subsidiary x to subsidiary y. the parent company of both subsidiary x and subsidiary y recently set a discretionary transfer price of $90 per unit for the transfers between x and y. how will subsidiary managers in the decentralized organization view this decision by parent company management? group of answer choices the manager of subsidiary y will be concerned about the decline in subsidiary y's profit and the effect this will have on his/her bonus. they will embrace it whole-heartedly because corporate profits will increase. they won't mind because the intercompany transaction will still occur. they won't notice because all decisions in the decentralized organization are made by the parent.
"The manager of subsidiary y will be concerned about the decline in subsidiary y's profit and the effect this will have on his/her bonus."
The general manager of a wholly owned subsidiary can follow the rules set forth by the parent company without raising any objections, but the manager of a joint venture subsidiary must take into account the wishes and ideas of the secondary partner and the parent company because they both own the business and have decision-making authority.
A joint venture is a business that was founded, is owned by, and is run by two or more businesses. In a joint venture, the partners may be equally divided, or one partner may own a larger portion of the company. A single business owns a totally owned subsidiary and retains control over it.
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