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Helen [10]
1 year ago
9

NAME 2 COSTS/DRAWBACKS OF SETTING UP A FRANCHISE?

Business
1 answer:
Lorico [155]1 year ago
4 0
The cost of everything and the problem of not knowing whether or not its going to succeed.
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Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows
Inessa [10]

Answer:

1.Allocated cost

Land 150,000

Building 250,000

Furniture 100,000

Total 500,000

2.Net income cash flow -500,000 IA

Explanation:

1.

Allocated cost

Land =500,000*180,000/600,000=150,000

Building =500,000*300,000/600,000=250,000

Furniture =500,000*120,000/600,000=100,000

Allocated cost

Land 150,000

Building 250,000

Furniture 100,000

Total 500,000

2.

Cash -500,000

Land 150,000

Building 250,000

Furniture 100,000

Net income cash flow -500,000 IA

3 0
3 years ago
When there is a full forward cover with the spot rate equal to the forward rate all of the following are true​ EXCEPT: A. The cu
Blababa [14]

Answer:

B. The hedge is asymmetric.

Explanation:

Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.

For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.

Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.

Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.

Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.

8 0
3 years ago
refers to a system under which a country's currency is nominally allowed to float freely against other currencies, but in which
Temka [501]

Answer:

A Dirty Float

Explanation:

A dirty float or managed float, refers to a floating exchange rate system operated by a country's central bank where there are occasional interventions in the foreign excange markets to influence the demand and supply with the intention of curbing perceived volatilities in the currency.

As stated in the question, the intervention of the Central Bank will usually occur when it believes that the currency has deviated too far from its fair value.

The dirty float system is a buffer against external economic influences that may want to disrupt the foreign exchange market in a country.

Actually, from 1946-1971, many industrialized nations around the world operated the fixed exchange rate system or the Bretton Woods agreement but this changed August 15, 1971, when President Richard Nixon decided to exit the United States from this system and till date most nations that intend to protect their domestic markets and industries against external foreign influences have adopted the dirty float exchange system.

8 0
3 years ago
Mitchell has worked for a very large company for three years. During lunch one day he stood at the elevator and read the buildin
s344n2d4d5 [400]

Answer:

It is departmentalized in a functional way

Explanation:

Functional departmentalization is the type of organizational structure based on common job functions. In Mitchell's case all similar jobs, like legal or marketing, are grouped in one place or on the same floor. This type of organization provides space for further employee's specialization by putting staff in places where their skills can further develop.

8 0
3 years ago
A cylindrical can that has a capacity of 20 m3 will be made. The metal used to build the top costs $10 per square meter while th
Alchen [17]

The dimensions of the cylinder can be used to minimise cost of manufacture.

<h3>How to we find minimised cost?</h3>

Let's ignore the metal's thickness and assume that the material cost to manufacture is precisely proportionate to the surface area of a perfect cylinder.

A=2πr(r+h)

Given that V=1000=r2h and h=1000=r2, we can write

A=2πr(r+1000πr2)

A=2πr2+2000r−1

By setting the derivative to zero, we may determine the value of r that minimises A:

A′=4πr−2000r−2

0=4πr−2000r−2

2000r−2=4πr

2000=4πr3

r=500π−−−√3

r=5.419 + cm

h=1000πr2=10.838 + cm

The can with the smallest surface area has a volume of 1000 cm 3 and measures 5.419+ cm in radius and 10.838+ cm in height. The can has a surface area of 553.58 cm 2. Given a constant volume, the cylinder with diameter equal to height has the least surface area.

Can surface area (cm2) versus. radius (cm), where capacity = 1000cm 3.

Learn more about manufacturing here:

brainly.com/question/17111259

#SPJ4

8 0
1 year ago
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