Answer:
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Explanation:
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Answer:
1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.
2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.
3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.
4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.
Answer:
Effect on income= $120,000 loss
Explanation:
Giving the following information:
Sales $320,000
Variable costs $200,000
Fixed costs $140,000.
None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.
Effect on income= Sales - varaible cost
Effect on income= 320,000 - 200,000= $120,000 loss
By the use of Lifo in a period where the prices rise, companies avoid to report paper profit, also called phantom profit, as economic gain. Have in mind that in periods of changing prices, the cost flow assumption can have a significant impact onincome and on evaluations based on income. That is why when Lifo is used the companies tend to <span>report the lowest net income </span>
The demand of that product decreases only the few who can afford will purchase and the cause of higer prices on aproduct may b due to increement in taxes on acommodity by the gov't
