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2 years ago

Which of the following consists of everything outside an organization's boundaries that might affect how the business operates?

Business

1 answer:

seraphim [82]2 years ago

8 0

The external factors that might affect how the business operates are:

A. Domestic business environment
B. Political-legal environment
C. External environment

<h3>What are the external factors that impact business operation?</h3>

The external factors that impact business operations include:

Social
Economic
Competitive
Demographic
Global factors
Technological
Political and legal.

The corporate culture of an organization is outside its boundaries.

Thus, the external factors that might affect how the business operates are Domestic, Political-legal, and External environments and not the corporate culture.

Learn more about an organization's external environments at brainly.com/question/15020066

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An increase in a firm's tax rate will__________ if the firm has debt capital in its capital structure:

Temka [501]

Answer:

d. decrease the firm's WACC.

Explanation:

As per WACC formula

WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )

By assuming the values to prove the answer

Weights

Common equity = 55%

Preferred Equity = 15%

Debt = 30%

Costs

Common equity = 15%

Preferred Equity = 8%

Debt = 12%

Tax rate is 15%

Placing values in the formula

WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )

WACC = 8.25% + 3.06% + 1.2% = 12.51%

Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula

WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )

WACC = 8.25% + 2.7 + 1.2% = 12.15%

Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.

7 0

3 years ago

The maximum distance people are willing to travel for a service is

ladessa [460]

Answer:

Range

Explanation:

Range is the term which is used to describe the maximum distance which the consumers or customers are prepared or willing to travel in order to acquire the goods or to use a service.

It is because at some point, the expense or the inconvenience which will outweigh the requirement of the good.

And there are two types of range, one is small rage and other is large range.

Small range is the range which the people are willing to go only a distance which is short for the everyday consumers services like the pharmacies, grocery. While the large range is the range which will people travel the longer distances for the other services like ball game.

6 0

3 years ago

An adequate supply of complements to a product results in: a. more customers opting for the product. b. higher switching costs.

Rama09 [41]

Answer: a. more customers opting for the product

Explanation: It is important for a companies and businesses to ensure that in addition to the product they deal in itself, there is an adequate supply of complements. Complements to a product are products whose use is related to the use of an associated product, as such, its appeal increases with increasing use or popularity of its complement. An adequate supply of complements to a product results in more customers opting for the product.

8 0

3 years ago

3. Do you agree with Graeter’s decision to stop franchising?

liberstina [14]

Answer: Yes, I agree with Graeter’s decision to stop franchising?.

Explanation:

Graeter’s decision to stop franchising was simply to maintain the quality of their products.

If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.

5 0

2 years ago

At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal

Tema [17]

Answer:

Explanation:

We have two journal entries to be able record the repurchase and retirement of the shares

First journal to record the share repurchased

Dr Treasury stock 8,910

Cr Cash 8,910

While the second journal is to record the retirement of share repurchased:

Dr Common stock 1,100

Dr Paid-in capital common stock 2,310

Dr Retained Earning 5,500

Cr Treasury stock 8,910

To record the share repurchased:

The Treasury stock account is debited with the amount that is equals to cash paid for stock that is been repurchased, therefore, offsetting entry is credit Cash account = Number of share repurchased multiply Price purchase

= 1,100 * 8.1

= $8,910

Also, to record the retirement of share repurchased:

The common stock account is been debited at the amount = Par value multiply by Share retired

= 1 * 1,100

= $1,100

As one common stock is carried $2.1 value excess of par ( which is calculated as 168,210 / 80,100); paid-in capital account is debited by $2,310 ( 1,100 * 2.1)

The retained earning is been debited by the amount is calculated as follows,;

Number of share retired multiply by ( Price at retired - Par value - Excess of par value) = 1,100 * ( 8.1 -1-2.1) = $5,500

Treasury account is debited $8,910 to bring the balance of this account to zero as stocks repurchased are fully retired.

5 0

3 years ago