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2 years ago

Is it more common for a firm to fail due to lack of sales or poor financial management? multiple choice question.

1 answer:

8 0

When it comes to lack of sales or poor financial management, the reason why most firms fail is a. poor financial management.

<h3>Why do companies fail?</h3><h3 />

There are several reasons why a company can fail such as budgetary issues, and a lack of concrete goals to guide the activities of the company.

Most of these things stem from poor financial management however. Think of it this way, if a ship has a bad captain, then the chances of the ship sinking increases.

Poor financial management would lead to money not going to the right expenses which means that the business will make a lot of losses instead of profit and so will close.

In conclusion, between lack of sales and poor financial management, poor financial management is worse.

Find out more on businesses failing at brainly.com/question/13371882

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Webee Ltd. has entered the growth stage of its business. It is raising external finances to sustain its operations. In which typ

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Flotation costs are the amounts that are significantly required for the issuing of various securities in a company such as legal fees and registration fees. In addition, the type of funding that would mostly likely incur flotation costs in Webee Ltd. would be by issuing common stocks.

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3 years ago

Read 2 more answers

Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo.

motikmotik

Answer:

a. Joplin Industries Inc.

Absorption Costing Income Statement

For the Month Ended June 30

Sales $81,000,000

Less: Beginning inventory $4,387,200

Cost of goods manufactured $45,756,000

Cost of goods sold $50,143,200

Gross Profit $30,856,800

Selling and Administrative Expenses $13,122,000

Operating Income $17,734,800

b. Joplin Industries Inc.

Variable Costing Income Statement

For the Month Ended June 30

Sales $81,000,000

Variable cost of goods sold $40,500,000

Manufacturing Margin $40,500,000

Selling and Administrative Expenses $12,150,000

Contribution Margin $28,350,000

Fixed cost

Manufacturing cost $8,856,000

Selling and Admin Expenses $972,000

Total Fixed cost $9,828,000

Operating Income $18,522,000

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3 years ago

During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol

MrRa [10]

Answer:

Date Account Title Debit Credit

Feb 12 Cash $18,000,000

Common Stock $2,000,000

Paid in Capital in excess of Com- $16,000,000

mon stock par value

Working

Cash = 2 million shares * $9 = $18,000,000

Common stock = 2 million * $1 par value = $2,000,000

Date Account Title Debit Credit

Feb 13 Legal expenses $360,000

Common Stock $40,000

Paid in Capital in excess of Com- $320,000

mon stock par value

Working

Cash = 40,000 shares * 9 = $360,000

Common Stock = 40,000 * 1 = $40,000

Date Account Title Debit Credit

Feb 13 Cash $945,000

Common stock $80,000

Preferred Stock $200,000

Paid in Capital in excess of Com- $640,000

mon stock par value

Paid in Capital in excess of Pre- $25,000

ferred stock par value

Working:

Common stock = 80,000 shares * 1 = $8,000

Preferred stock = 4,000 shares * $50 = $200,000

Paid in Cap, Common = 80,000 * (9 - 1) = $640,000

Date Account Title Debit Credit

Nov. 15 Equipment $3,688,000

Common Stock $380,000

Paid in Capital in excess of Com- $3,308,000

mon stock par value

Working:

Common stock = 380,000 * $1 = $380,000

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3 years ago

Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and

kumpel [21]

Answer:

The $20 ticket to the match.

Explanation:

The sunk cost would be the $20 ticket to the match.

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3 years ago

In the last decade or so, there has been a dramatic expansion of small retail convenience stores (such as 7-Eleven, Kwik Shop, a

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Answer:

2) the time consumers save when purchasing goods there.

Explanation:

Their name explains everything. A convenience store is a store where someone can go and purchase goods easily and without any type of difficulty.

Of course a Walmart is cheaper, but will you travel 20 minutes just to get there, and spend 20 more minutes choosing and paying for a cheap good like a Coke, and then 20 more minutes back home. Whatever you save on buying the Coke, you will spend 50 times more in gas and personal time.

So even if a Coke costs $1 more in a 7-Eleven, it is worth it. You will save a lot of money by purchasing your Coke there.

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3 years ago