Type the correct answer In the box. Spell all words correctly.

Explain how incentives and the limited role of government function in a free enterprise system.

Degger [83]

Answer:

The government has two major roles;

a. The role of a rule maker.

b. The role of an umpire.

Explanation:

a.

A free enterprise system is an economic model where the prices and quantities produced are determined by the market rather than the government. The government usually has limited or no control on the market forces. In other words, a free enterprise system is an ideology where the market is majorly controlled by private businesses. The foundation for free markets are; voluntary trade, private ownership of property and competition in bidding. However, a government controlled economy usually has the following properties, namely; all property is publicly owned, trade is coerced and there is limited competitive bidding. Even though the government has a limited role in a free enterprise system it still has a role in allowing individuals to operate freely in the market. The roles of the government are; rule maker and umpire.

b.

In a free enterprise system, individuals are allowed to do their transactions without any restrictions. Even though individuals are free to operate, there needs to be rules to make sure that the transactions are in deed free. This is where the government comes in to enforce the laws that govern the smooth running of a free enterprise system. The government's role as an umpire means that the government has the authority to solve disputes resulting from different interruptions of the law.

3 0

3 years ago

What are control accounts in accounting??

Marina CMI [18]

In accounting, the controlling account is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail.

6 0

2 years ago

Read 2 more answers

Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So,

beks73 [17]

Answer:

b. discounting

Explanation:

Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So, she applies the <u>discounting</u><u> </u>process to estimate the present value of her gift.

Discounting: It is a mechanism used for determine the present value of money, which is going to be paid in future. As debtor use this mechanism to delay payment of creditor for a certain period of time in exchange of some fees or charge to be paid. As time value of money change and it does not remain same.

There are mainly three type of discounting:

Trade discount
Quantity discount.
Cash discount.

Hence in the given case, she applies the discounting process to estimate present value of her gift.

5 0

3 years ago

The presence of diversity (i.e., disparate points of view and perspective), faciliates creativity because __________ are natural

Artemon [7]

Answer:

The answer would be

Explanation:

There are many benefits, both quantitative and qualitative, that provides effective management of diversity management. This management, in part, involves visualizing cultural differences as a positive element that adds value to all our actions.

Increase creativity and innovation capacity; people with diverse perspectives who bring new visions on familiar topics.

It can help improve communication because we learn to accept the divergent and deal with it

Reduces tensions and conflict in work teams.

5 0

3 years ago

Farr Company purchased a new van for floral deliveries on January 1, 2020. The van cost $56,000 with an estimated life of 5 year

marta [7]

Answer:

The balance of the Accumulated Depreciation account at the end of 2021 is $26,880

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total asset cost - salvage value = $56,000-$14,000 = $42,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2020 = 40% x $42,000 = $16,800

At the beginning 2021, the Depreciable cost's book value is $42,000-$16,800 = $25,200

Depreciation expense for 2021 = 40% x $25,200 = $10,080

The balance of the Accumulated Depreciation account at the end of 2021 = $16,800 + $10,080 = $26,880

8 0

3 years ago