Answer:
B. both models allow for government intervention in the short run.
Explanation:
Keynesian model - this model encourages the demand to increase the economy. This model believes that to boost the economy, an increase in consumer demand is a must.
it believe larger the investment in the demand more will be output, supply and less will be inflation. so for the increase in demand, Keynesians advise lowering the tax value.
AD-AS model is often called as demand-aggregate supply model. This model explain the relationship between the demand and aggregate supply.
Your uncle has $1,200,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? a. $84,703.56 b. $82,162.46 c. $96,236.09 d. $105,032.42 e. $77,080.24
Answer:
C) $96,236.09
Explanation:
To solve this problem, we will use the Present Value of an annuity due formula. The annuity is due because the withdrawals are made at the beginning of each period.
The formula is:
[tex]P = A (1-(1+i)^{-n} / i)*(1+i)[/tex]
Where:
P = Present value of the annuity
A = Value of each annuity payment
i = Interest rate
n = number of periods
Now, we simply plug the amounts into the formula:
[tex]1,200,000 = A (1-(1+0.07)^{-25} /0.07)*(1+0.07)\\1,200,000 = A (12.469334)\\1,200,000/12.469334 = A\\96,236.09 = A[/tex]
All of the following are examples of place advertising EXCEPT _____. a. billboards and bulletins b. transit ads c. shopping cart ads d. posters e. cinema ads
Explanation:
Billboards and bulletins:
Theses are the most impact way of advertising. These are normally huge and kept in vehicular traffic to attract customers.
Transit ads:
In simple terms, transit ads are the advertisement posted or hanged on the moving vehicles ie. in the side or back of bus, van, etc to advertise and attract customer.
shopping cart ads:
Advertisement that are pasted on the shopping cart
posters:
These are large printed pictures
cinema ads:
Advertisement which are played in the cinema theater To attract customer through a big screen.Shopping Ads is not an example of place advertising because it is an In-house advert.
A place advertising refers to a type of advertisement done through creative and unexpected forms in other to grab the potential consumer's attention.
Billboards and bulletins are very good example of place advertising, usually huge and kept in vehicular traffic to attract customers.
The Transit ads are hanged on a moving vehicles to advertise and attract customer.
Posters are like billboard and intends to attract customers.
In conclusion, the Correct Option is Shopping Ads because it is an In-house advert.
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In hierarchical organizational structures, communication between employees tends to:
a)be very difficult to achieve at all.
b)occur across organizational functions.
c)be more "top-down."
d)be more "bottom-up."
Answer:
The correct answer is letter "C": be more "top-down".
Explanation:
Hierarchical organizations are vertical entities in which communication is given from one department to another according to the range employees have in the company. While being bureaucratic, these kinds of companies could have problems with speed in communication since one department cannot jump over another's hierarchy. This communication usually comes from the top (managers) to the bottom (regular employees) rank in the firm.
Answer:
C. Top down communication
Explanation:
Top-down communication literally is a method of issuing communication, instructions and information within a business using a hierarchical structure. Information from the highest-ranking officials within the company filter down to employees using the company's managerial structure.
The top-down approach relies on higher authority figures to determine larger goals that will filter down to the tasks of lower level employees. In comparison, the bottom-up style of communication features a decision-making process that gives the entire staff a voice in company goals.
Hobby Farms, Inc., owns rural property that it leases to various tenants,including Ira. Ira’s transfer of his entire interest in the leased property to aJason isa.an assignment.b.an eviction.c.a right of entry.d.a sublease
Answer:
D (sublease)
Explanation:
Sublease is the agreement in which the tenant (sublandlord) gives the right to take over or use the property to a new tenant. But sublandlord needs to get the consent of owner first before subleasing it to a new tenant. Also, still in this situation the owner holds sub landlord responsible for that property. Rent will be paid to sublandlord which then pays it to the owner.
During the 1970s and 1980s, formal project management practices were put in place because the constraints were _____ and _____ boundaries had to be crossed
During the 1970s and 1980s, formal project management practices were put in place because the constraints were Tight and Several boundaries had to be crossed
Explanation:
Management of the project consists of expertise, experience, strategies and techniques. The 1970s and 1980s brought more published data about the management of programs into the hands of the public.
In the 1970s and 1980s, further empirical research were generated on project management and ideas, processes, and guidelines were developed. The potential benefits of formal project management were seen, for example, and standards began to be adopted.
In a(n) _____ policy approach, a company that collects information does not use the information for any other purpose unless the customer specifically chooses to allow that use.
Answer:
Opt in
Explanation:
Opt in policy approach, is the kind of approach in which the policy is sets out in order to ensure the consistent application and the understanding of the firm or company opt in approach for communication with the individuals.
In short, it is defined as the permission expressed by the company or the firm, which gathers or collect the information , does not use the information for any other motive unless the client or the customer specially chooses or opt to allow for using the information.
Similar to other not-for-profits, government healthcare organizations are able to raise funds through equity investments and they are exempt from income taxes and property taxes.
true/false
Answer:
False
Explanation:
Non-profit organisation are exempted by the government from any sort of taxes to improve their operations and effectiveness. Government health organisation sometimes raise funds through equity investments, and any funds generated thought equity financing comes under tax bracket. In this regard, government healthcare organisations which raise funds by using equity financing are not exempted from income or property tax.
Given the following data: Return on investment 35% Turnover 2.8 Margin 10% Sales $280,000 Average operating assets $80,000 Minimum required rate of return 20% The residual income would be:
Answer:
Residual income = $12000
Explanation:
given data
Return on investment = 35%
Turnover = 2.8
Margin = 10%
Sales = $280,000
Average operating assets = $80,000
Minimum required rate of return = 20%
solution
first we get here total Investment that is
Investment = Sales × [tex]\frac{margine}{return}[/tex] ...............1
Investment = $280,000 × [tex]\frac{10}{35}[/tex]
Investment = $80000
and now we get Residual income that is express as
Residual income = Sales × Margin - Investment × Minimum required rate of return ...................2
Residual income = $280,000 × 10% - $80000 ×20%
Residual income = $12000
When Sue graduated from college, she got a job with a starting salary of $30,000. When Sue's sister Jan graduated five years later, her starting salary was $38,000. Jan likes to tease Sue about earning more than Sue did right out of college. Sue claims that she actually had a higher salary in real dollars. The Consumer Price Index rose 12 percent during the five years separating the sisters' graduations.
Therefore, we can conclude that:
a. Sue earned a higher real salary.
b. Jan earned a higher real salary.
c. both Sue and Jan earned the same real salary.
d. There isn't enough information to determine who earned the higher real salary.
Answer:
b. Jan earned a higher real salary.
Explanation:
The consumer price index rose 12 percent which means that with the same amount of money 5 years later you will be able to buy 12% less goods and services. Now in order to find who earned a higher real salary we will calculate how much higher was Jan's salary compared to SUE. If the difference in salary was more than 12% than Jan earned a higher real salary, if less than 12% then Sue earned a higher real salary and if =12% then both earned the same amount of real salary.
Difference in salary = 38,000-30,000=8,000
Percentage increase in salary = 8,000/30,000=0.266 =26.6%
Jan earned 26.6% more than Sue and the increase in the price index was 12% which means that Jan earned a higher real salary than Sue.
Jan earned a higher real salary than Sue.
Explanation:Sue claims that she had a higher salary in real dollars compared to Jan, despite Jan's higher starting salary. To determine which sister earned a higher real salary, we need to consider the effect of inflation during the five-year period. The Consumer Price Index (CPI) rose by 12 percent during this time. To calculate the real salary for each sister, we need to adjust their starting salaries for inflation using the formula:
Real Salary = Starting Salary / (1 + Inflation Rate)
For Sue, her real salary would be: $30,000 / (1 + 0.12) = $26,785.71.
For Jan, her real salary would be: $38,000 / (1 + 0.12) = $33,928.57.
Comparing the two real salaries, we can see that Jan actually earned a higher real salary than Sue.
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"Which of the following is the reason behind the slow growth in U.S. incomes during the 1970s and 1980s a. unstable economic conditions in Eastern Europe.b. increased competition from abroad.c. a decline in the rate of increase in U.S. productivity.d. a strong U.S. dollar abroad, hurting U.S. exports.
Answer:
A. Decline in the rate of increase in U.S. productivity.
Explanation: The Economic policies of the 1970s and 1980s led to reduced U.S. productivity,the production levels dropped drastically as a result of TAX CUTS for high income earners which was approved for the Rich by the Government.
Heavy Interest rate for the supply of Goods and services caused many industries to fold up,due to the high cost of Borrowing for the purchase of raw materials and other equipments and required. These factors were thought to be stimulants for the Economy but they all eventually adversely affected the United States Economy.
Answer:
Correct answer is (c) a decline in the rate of increase in U.S. productivity.
Explanation:
During the period, there was a slowdown in productivity level in U.S and as it known that the rate of productivity determine the standard of living of any nation. The U.S economy primarily depends on company output and as a slowing down in their productivity level, the growth also slow down.
Identify the stage in the forming-storming-norming-performing model in which a team meets to learn about a project, agrees on basic goals, and begins to work on project tasks.
a. Storming
b. Norming
c. Forming
d. Performing
Answer:
c. Forming Stage
Explanation:
Forming Stage -
It is the very first stage in the group development.
In this initial stage , the people tries to learn about the task , and get along each other , to understand and start to work together .
This stage may even invite certain conflicts and misunderstanding .
In this stage a basic goal and work allotment is done , all the strategies and works are started in this very stage .
Hence , from the information of the question,
The correct term is forming stage.
In Fine Fettle is considering three different options for selling its new product:
a. warehouse clubs,
b. supermarkets, and
c. high-end health food markets.
Explanation:
warehouse club sell items in bulk and offer limited choices in each product category.
high end health food market carry only health food product in a boutique like setting
Ben has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to a concert for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event? $
Answer:
The correct answer is: $60.
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.
In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours ($10 x 3 = $30). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:
$30 + $30 = $60
The opportunity cost of Ben attending the concert is $60, which includes the $30 for the concert ticket and the $30 he could have earned from working.
Explanation:In economics, the opportunity cost represents the alternative forgone to take another action. If Ben decides to attend the concert, he is giving up the opportunity to work and earn money. So, the total opportunity cost will include the cost of the concert ticket and the money he could have earned from working. Thus, for three hours, at a rate of $10 per hour, he could have earned $30. Therefore, the total opportunity cost is $60 ($30 for the concert ticket + $30 loss of earnings).
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The development of package design, trademarks, warranties, and service policies is associated with the _____ element of the marketing mix.
Answer:
The correct answer is letter "A": product.
Explanation:
The marketing mix is a strategic analysis of the internal factors of a company and developed especially to firms. (Four) are the variables considered for a business: product, price, place, and promotion. The product involves the good or service the organization intends to offer and all the quality and legal implications.
Simon, a C corporation, had a deficit in accumulated earnings and profits of $50,000 at the beginning of the year and had current earnings and profits of $10,000. At year end, Simon paid a dividend of $15,000 to its sole shareholder. What amount of the dividend is reported as income? a. $0 b. $5,000 c. $10,000 d. $15,000
Answer: The answer is $10,000
Explanation:
Dividend is the portion of a business earnings or reserves that is paid to shareholders. This is usually paid on a yearly basis.
When dividends are paid it first comes out of the current earnings (in this case $10,000).
The excess of the dividend payment (that is $5,000) will be reduced from the sole shareholder's stock in the company, since he is the sole owner of the company.
Answer:
c. $10,000
Explanation:
Dividends are distributed out of the its earnings and profits and hence if current earnings and profits is positive and accumulated earnings and profits is negative, dividends can be distributed only to the extent of current earnings and profits.
The move of retail banking to use ATMs after Citibank unveiled its first ATMs illustrates the use of information systems to achieve which business objective?
a. customer and supplier intimacy
b. improved decision making
c. survival
d. competitive advantage
e. improved efficiency
Answer:
The correct answer is letter "E": improved efficiency.
Explanation:
Among the many advantages that information has brought to the business world, improving corporations' efficiency is one of them. The ability of employees to implement technology to reduce costs or to improve the quality of the outcome determines how profitable a firm could be based on the type of product provided to consumers. At the same time, companies who want to achieve their goals are likely to imitate the successful practices of other firms to remain competitive.
From a purely economic point of view, should the government impose price floors on wages, otherwise known as a minimum wage? What are the pros and cons of doing so, and do the pros outweigh the cons or do the cons outweigh the pros? Explain.
Answer:
Pros: People searching for job opportunities: 1. Can feel secure of obtaining a wage that is enough to live with dignity. 2. Standardize the negotiation across all labor markets, making it easy to contract workers at minimum wage. Cons: 1. The allocation of resources by market mechanism won't work for low range salary jobs. This can create inefficiencies like the supply of work (unemployed workers) not hired. 2. Levels of production not matching the demand in certain levels (the minimum price of a product is higher than a scenario where not regulated wages). 3. If the productivity of the job position is below of the cost, the employer won't be able to produce at all.
Explanation:
In order to assess if the pros outweigh the cons we need to have specific market situations. Per example, in countries where the average productivity per worker is higher than the minimum wage in the majority of labor markets, the pros outweigh the cons. In countries where productivity per worker is lower than minimum wage, is expected to see high levels of unemployment and distortion in the price of factors, putting pressure in other economic variables. In this scenario, the pros not outweigh the cons.
The government's imposition of a minimum wage, or price floor on wages, aims to ensure a living wage for employees but can lead to higher unemployment. The balance of pros and cons depends on how such a price floor impacts the labor market and whether it significantly affects employment levels.
From a purely economic point of view, the imposition of a price floor on wages, known as a minimum wage, is designed to ensure workers are paid enough to meet their basic needs. This economic policy has both benefits and drawbacks. Pros include the assurance that workers earn a living wage, potentially reducing poverty and bolstering consumer spending, which in turn can drive economic growth. Cons, on the other hand, include the potential for higher unemployment as employers may hire fewer workers due to increased labor costs, and the possibility of giving rise to uncompetitive business environments.
One of the key arguments for minimum wage laws is that they increase the purchasing power of low-income workers. The intention is that with higher wages, workers will be better able to support themselves and their families. However, if the price floor is set too high, it can lead to an excess supply of labor (unemployment) if employers cut back on hiring. Therefore, governments aim to balance the desire to increase wages with the potential negative impact on employment levels.
In assessing whether the pros outweigh the cons, much depends on the market conditions and the responsiveness of supply and demand to changes in wages. A price floor that does not create a substantial excess supply of labor may seem justifiable, but if it creates significant unemployment, the cons may outweigh the pros. Therefore, much of the disagreement about the implementation of a minimum wage comes from varying perspectives on its impacts on unemployment and the overall economy.
You purchase 750 shares of 2nd Chance Co. stock on margin at a price of $44. Your broker requires you to deposit $17,500. What is your margin loan amount? What is your margin requirement in percentage terms?
Answer:
Part A:
Margin Loan mount= $15500
Part B:
Margin requirement in percentage= 53.03%
Explanation:
Part A:
Formula:
[tex]Margin\ loan\ amount=(stock\ price*Shares)-Deposit[/tex]
In our case:
Stock Price=$44
Shares=750 shares
Deposit=$17,500
[tex]Margin\ loan\ amount=(\$44*750\ Shares)-\$17500\\Margin\ loan\ amount=\$15500[/tex]
Part B:
Formula:
[tex]Margin\ Requirement=\frac{ Deposit}{(stock\ price*Shares)}[/tex]
In our case:
Stock Price=$44
Shares=750 shares
Deposit=$17,500
[tex]Margin\ Requirement=\frac{\$17500}{(\$44*750)}\\Margin\ Requirement=0.5303[/tex]
In Percentage:
Margin requirement in percentage=[tex]0.5303*100=53.03\%[/tex]
Answer:
Purchase price of 750 shares of 2nd Chance Co. stock = 750 * Price of a stock
= 750 * $ 44
= $ 33,000
Hence, Margin loan amount = Purchase price of stock - Deposit required by broker to purchase the 2nd Chance Co. shares
= $ 33,000 - $ 17,500
= $ 15,500
Hence, Margin loan requirement in % = Margin loan amount / Purchase price of stock
= $ 15,500 / $ 33,000
=0.4696 = 47% (Approx.)
Explanation:
Refer to the answer.
If the total fixed costs increase, does this change average (total) costs? How about average variable costs?
Answer:
Yes, it changes the average (total) costs but the average variable costs remain the same.
Explanation:
Average Total Costs = Total Cost / Total Output
= ( Fixed costs + Variable costs) / Total Output
Average Variable Costs = Total Variable Costs / Total Output
Since the total fixed costs increase there will be an increase in total cost, which will ultimately increase the average total costs. Since there is an increase in total fixed costs or fixed costs for that matter, there will be no change in the total output produced as fixed costs have to be incurred always, irrespective of the level of output produced.
Since, there is a change in fixed costs, there will be no change in variable costs and thus there will be no change in average variable costs also.
You work as an assistant coach on the university basketball team and earn $14 per hour. One day, you decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $9. The total cost (valued in dollars) of skipping practice and going to the carnival (including the opportunity cost of time) is
Answer:
[tex] Total cost = 9 + \frac{14 dollars}{hour} *1 hour = 9+14 = 23 dollars[/tex]
Explanation:
For this case let's define some notation:
y = Amount of money earned
x = Number of hours working
For this case if we assume that we have a linear relationship between the amount of money and the time t in hours working we have the following relationship:
[tex] y = 14 \frac{dollars}{hour} x[/tex]
And we want to find the cost of skipping practice and going to the carnival including the oportunity cost time.
So we have the following formula for the total cost:
[tex] Total cost = Opportunity cost +Variable costs[/tex]
Based on the information the person slip 1 hour long practice so on this case we have a cost of 14*1 =14$ dollars and the other cost is the associated to the amount of money spent at the carnival 9$.
And for this case then if we analyze the situation we can replace and we got:
[tex] Total cost = 9 + \frac{14 dollars}{hour} *1 hour = 9+14 = 23 dollars[/tex]
With yearly inflation of 5%, prices are given by P=P0(1.05)t, where P0 is the price in dollars when t=0 and t is time in years. Suppose P0=1. How fast (in cents/year) are prices rising when t=10? Round your answer to two decimal places.
Answer:
0.07947
Explanation:
Given that
P=P0(1.05)t
where
P0 represents the price in dollars
Plus P0 = 1
T = time = 10 years
So the equation is
P = 1(1.05)^10
The formula is shown below:
[tex]\frac{d(a^x)}{dx}=a^x\log a[/tex]
[tex]\frac{d(P)}{dt}=\frac{d(1.05)^t}{dt}=1.05^t\ln (1.05)[/tex]
[tex]\frac{d(P)}{dt}=\frac{d(1.05)^{10}}{dt}=1.05^{10}\ln (1.05)[/tex]
After solving this, the value is 0.07947
What is the value of a preferred stock that pays a perpetual dividend of $150 at the end of each year when the interest rate is 7 percent
Answer:
$2,143
Explanation:
The computation of the value of the preferred stock is shown below:
Value of the preferred stock = Cash flows with respect to perpetual dividend ÷ the rate of interest
= $150 ÷ 0.07
= $2,143
Simply we divided the rate of the interest by the cash flows so that the accurate value of the preferred stock can be computed
Even if an objective is impossible to attain, it still meets the criteria of a good objective because it can motivate worker.
(A) True
(B) False
False, even if an objective is impossible to attain , it still meets the criteria of good objective because it motivate workers.
Explanation:
Goal and objectives are required for running a company properly. If the workers are motivated they will be able to increase the production as well as work hard to improve their performance. It will increase the output
Proper motivation increases the efficiency of the workers , it also increases the efficiency of the company, it also reduces the cost and also increase the overall productivity. Workers are also motivated if they are given reward for their work. The leader should keep in mind that he should motivate for that can be achieved if the goal are not not achieved the workers will be dishearten.
The most crucial test used to determine if something is a fixture is the manner in which it is affixed to the real estate.A. TrueB. False
Answer:
A.True
Explanation:
A fixture refers to something which is fixed or attached to a property such as a building built on a piece of land shall be construed as a fixture with respect to the land.
To determine as to what shall be considered a fixture relates to the purpose for which something is attached to the asset.
The "manner" of attachment refers to if the attachment is of permanently or temporarily fixed. If something is permanently fixed and requires specific tools for it's removal, such an attachment is usually considered a fixture.
Hence the given statement is true.
Laurie owns a 2014 Honda Accord, which is the third Honda vehicle that she and her husband have owned. They describe themselves as a "Honda family" and intend to purchase another Honda automobile when their daughter gets her driver's license. They know and trust Hondas. Which key concept of marketing does this illustrate?
Answer:
Product Concept
Explanation:
Product concept implies that buyers are always ready to buy products which they know from their experience provide the best performance, innovative characteristics, or quality. Therefore, there is a likelihood that consumers will be loyal if there are different product choices or if the company’s product provide them more benefits.
Therefore, the assumption of the product concept is that the decision to buy a product by the consumer is not based on the price and availability of the product. The only factor that influence the buyer’s decision to buy a product, in this case Honda automobile by Laurie, is greater quality no matter how expensive it may be.
Final answer:
Laurie's preference for Honda illustrates brand loyalty, a key marketing concept where trust, reputation, and past positive experiences play a significant role in perpetuating consumer-brand relationships.
Explanation:
The scenario described illustrates the key marketing concept of brand loyalty. Laurie and her family's continued preference for Honda vehicles due to their trustworthy reputation, experiences and satisfaction, exemplify a strong consumer relationship with the brand.
Honda's reliable products and the maintenance of a trustworthy reputation uphold customer confidence and encourage repeat purchases. Such reputation acts as a buffer against the risks associated with buying a car and ensures the family continues to see Honda as a preferred brand. This aligns with the idea that a customer's loyalty to a brand is significantly influenced by their trust and past positive experiences with the brand.
Furthermore, the mention of competition and the need for innovation in a global context indicates that Honda’s efforts to maintain brand loyalty are not just about quality but also about staying competitive in the market. The company's commitment to meeting consumer needs and the influence of competitive pressure from other global carmakers reflect a focus on consumer orientation and market competition.
An advantage of mass production is its ability to adapt quickly to changes in demand.
Answer:
The statement is: False.
Explanation:
One of the main disadvantages of mass production is the fact that it requires a large number of production units and processes. As the output increases, more labor hand and organizational management are requested. Thus, in front of sudden market changes, it will be harder for such manufacturing companies to adapt.
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $27,500 and the ending balance was $51,000. Raw materials purchases during the month totaled $78,000. Manufacturing overhead cost incurred during the month was $118,500, of which $3,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was: a) $78,000 b) $54,500 c) $101,500 d) $51,000
Answer:
b) $54,500
Explanation:
Beginning balance of raw material = $27,500
Ending balance was = $51,000
Purchases = $78,000
Direct cost of raw material is the net of the addition of the opening balance of raw materials and purchases less the closing balance. The manufacturing overhead cost is a mix of all the indirect cost incurred during production.
As such, the manufacturing overhead cost of $118,500 consisting of $3,500 consisted of raw materials would not be considered in determining the direct raw material cost.
Direct cost of raw material = $27,500 + $78,000 - $51,000
= $54,500
Show your understanding of interest by completing the following sentence: Interest is the amount of money (earned, owed) by the owner of an asset and (paid, earned) by the borrower of the asset for its use.
Answer:
Interest is the amount of money earned by the owner of an asset and paid by the borrower of the asset for it's use.
Explanation:
For example I am the owner of an asset which is cash and I lend out the cash to a borrower for a 7% interest. Now I as the owner of the asset will earn this 7% interest because I let someone else use my asset and they owe me this money, whereas on the other hand the borrower will pay me an interest for using my asset.
Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
A sole proprietorship: Advantage: Single ownership and concentrated decision making authority; Disadvantage: Risk of permanent bankruptcy. Partnership: Advantage: Shared responsibilities; Disadvantage: Conflicts over financial issues. Corporation: Advantage: Multiple investors; Disadvantage: Large shares in profit. Multinational company: Advantage: Large network; Disadvantage: Increased operational costs.
Companies transition through several organizational forms as they grow from start-ups to corporations - Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). Each comes with its own advantages and disadvantages relating to setup cost, legal liabilities, and management complexity.
Explanation:A company as it evolves from start-up to a major corporation, can transition through several organizational structures. These are Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC).
Sole Proprietorship: It is generally the first form for many start-ups. It is easy and inexpensive to set up but the owner has unrestricted personal liability for the company's debts.Partnership: Here, two or more individuals share ownership. It allows for shared responsibility and resources but disagreements among partners could disrupt the business.Corporation: A legal entity separate from its owners, this form limits the liability of owners. However, it can be expensive to set up and run.Limited Liability Company (LLC): An LLC brings together the benefits of partnerships and corporations. It can be more complex to set up but offers strong legal protections.Learn more about Organizational Forms here:https://brainly.com/question/33584786
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On May 7, Bergan Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Purchases/ Raw Material Inventory .......................80,000
Cr Bank/Account Payable....................................................80,000
Dr Work in Process ................................................................67,400
Cr Raw Material Inventory............................................................67,400
Explanation:
FOR PURCHASE OF MATERIAL
Dr Purchases/ Raw Material Inventory .......................80,000
Cr Bank/Account Payable....................................................80,000
Being purchase of 10,000 units of raw materials at $8 per unit
FOR MATERIAL FOR PRODUCTION
Dr Work in Process ................................................................67,400
Cr Raw Material Inventory............................................................67,400
Being materials used in production: 7,500 units at $8 per unit for job 200 and 1,480 units at $5 per unit for job 305
In relation to 'purchase of material' we debit the raw material inventory account because material is increasing and is an asset account; and we credit Bank if the materials have been paid for OR 'accounts payable', if the material has not yet been paid for.
In relation to 'requisition of material for production' we debit the raw material inventory account because material is decreasing and is an asset account; and we credit 'work in process' to assign the cost of materials to the ongoing jobs respectively.
Journal entries are created to record the purchase of raw materials on account and the usage of these materials in production. The initial purchase increases the Raw Materials Inventory and the Accounts Payable, and later, when materials are used, the balance is transferred from Raw Materials Inventory to Work in Process.
The subject of this question is journalizing inventory transactions in accounting. On May 7, when Bergan Company purchased raw materials, the journal entry would be as follows:
Raw Materials Inventory .................. $80,000
Accounts Payable .................. $80,000
Then, at the end of the month, materials were requisitioned for production. The journal entries would be:
Work in Process (Job 200) .............. $60,000
Work in Process (Job 305) ................ $7,400
Raw Materials Inventory .......... $67,400
This reflects that the cost of the raw materials used was transferred from the Raw Materials Inventory account to the Work in Process account, where they will be incorporated into the cost of the finished goods.
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