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2 years ago

In a properly functioning economic market, where does the economic value created by firms go? in other words, who gets it? why?

1 answer:

7 0

The value created by firms in the form of goods and services are distributed among various economic entities that consume them such as private consumers, government etc. But a closed circular flow diagram does not depict the other external values created. For example, a private college is a firm that produces education or provides education as a service to individuals who pay for it. This has a positive externality on society since these students can later teach others in society. Also firms produce under certain conditions and surveillance.

Firms can gain a certain control over society by studying the elasticities of demand. Also, firms generate certain expectations regarding wages and other social benefits. On the other hand, firms are controlled by governmental policies such as minimum wage laws, pricing laws etc. Such policies bind the full potential output if the potential output is not in confluence with social goals or maximization of social welfare.

Learn more about economics here: brainly.com/question/2824360

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Which of the following statements about Generally Accepted Audit Standards are true?

lidiya [134]

Answer:

B) I and III

Explanation:

Generally Accepted Audit Standards are used for auditing private companies. They provide systematic guidelines to auditors when conducting audits on companies' financial statements. They check for the auditor's verifiability of the company's compliance to the Generally Accepted Accounting Principles (GAAP) as well as their accuracy and consistency of their records. Therefore, choices I and III are correct.

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3 years ago

Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if

Nadya [2.5K]

Answer: Li can look for new ideas from different sources such as her career interests, problems she encountered on her job and suggestions from friends

Explanation: Great ideas are developed from a need to fix a problem. In searching for a new idea its encouraged for one to consider fixing a problem could be from a previous work environment. New ideas also come from ones interests such as a career path, a hobby or a passion. Alternatively, the importance of discussing ideas with friends and families can not be overemphasized as they know you best and can proffer great solution.

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3 years ago

On January 1, 2020, Mirada, Inc. issued five year bonds with a face value of $100,000 and an annual stated rate of 8%. Interest

Sergio039 [100]

Answer:

Book Value of bond = $106,931

Explanation:

Given:

Face value of bond = $100,000

Issue price = $108,425

Computation:

Interest payment = $100,000 x 8%

Interest payment = $8,000

Interest expense = $108,425 x 6%

Interest expense = $6,505.50

Amortization of premium = $8,000 - $6,505.50

Amortization of premium = $1,494.50

Book Value of bond = $108,425 - $1,494.50

Book Value of bond = $106,931

3 0

3 years ago

Incremental costs - Initial and terminal cash flow

Black_prince [1.1K]

Answer:

c. $504,000

Explanation:

Total cost of new equipment = Price of equipment + Shipping & Installation costs = $3,200,000 + $160,000 = $3,360,000

Increase in working capital = Increase in inventories & account receivables - Increase in accounts payable = $640,000 - $256,000 = $384,000

Total Initial net investment outlay = $3,744,000 ($3,360,000+$384,000)

Project terminal cash-flow = Sale value of equipment (after tax) + Recovery of working capital = $200,000*(1-0.40) + $384,000 = $120,000 + $384,000 = $504,000

5 0

3 years ago

Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences o

qwelly [4]

Answer: Option B

Explanation: In simple words, geographic departmentalization refers to the process under which an organisation separates its market operations on the basis of the geography such as country, state or district etc.

In the given case, company has separated its operations on the basis of different preferences of different countries.

Hence from the above we can conclude that the correct option is B .

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3 years ago