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1 year ago

What can an entrepreneur do to reduce risk?.

Business

1 answer:

Oksana_A [137]1 year ago

4 0

An entrepreneur can create a strong business strategy to reduce risk.

Entrepreneurs are the individuals who start new firms, taking on the majority of the risks and reaping the greatest gains. Entrepreneurship is the act of starting a business. The entrepreneur is typically thought of as an inventor who develops original ideas for products, services, businesses, and operational needs.

Creating a business strategy is one of the first actions that entrepreneurs may do to lower the risks associated with a new venture. Before beginning, one must determine how much time and money one will devote to their new venture. Market research should also be conducted. This provides insight into the likelihood that your new venture will succeed or fail.

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Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 y

lora16 [44]

Answer:

Chen should buy the new machine since it produces a positive NPV of $1,294

Explanation:

Summary of the Project Cash Flows is as follows :

Year 0 = ($120,000)

Year 1 to Year 10 = $18,900

The Project cost of capital = 9%

Calculation of the Project`s NPV :

NPV can be calculated from this summary using a financial calculator as :

CF0 = ($120,000)

CF1 = $18,900

Nj = 10

i = 9 %

NPV = ?

NPV = $1,293.73 or $1,294

The Project is accepted only if it has a Positive NPV

Conclusion,

Chen should buy the new machine since it produces a positive NPV of $1,294.

5 0

3 years ago

On January 1, 2018, Frost Corp. changed its inventory method to FIFO from LIFO, for both financial and income tax reporting purp

fiasKO [112]

Answer:

a. retained earnings statement, as a $630,000 addition to the beginning balance

Explanation:

Data provided in the question

Change in increase in inventory = $900,000

Income tax rate = 30%

By considering the above information, the cumulative effect is

= Change in increase in inventory - Change in increase in inventory × income tax rate

= $900,000 - $900,000 × 30%

= $900,000 - $270,000

= $630,000

This $630,000 is a addition to the beginning balance

4 0

3 years ago

Bobbi and Stuart are partners. The partnership capital of Bobbi is $41,400 and that of Stuart is $74,700. Bobbi sells his intere

Romashka-Z-Leto [24]

Answer:

c. John's capital account for $41,400

Explanation:

Based on this information it can be said that in this scenario the journal entry to record the admission of John as a new partner would include a credit to John's capital account for $41,400. This is mainly because even though Bobbi sold his interest for $63,900 his actual interest capital in the partnership was that of $41,400 .... meaning that John now holds a partnership capital of $41,400 and the Bobbi profited $22,500

4 0

3 years ago

Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,920 and two j

Tanya [424]

Answer:

job 429 -WIP 3040 debit

job 430 -WIP 4020 debit

job 431 -WIP 4740 debit

factory overhead 900 debit

raw materials 12,700 credit

--to record materials requisions--

job 429 -WIP 2,300 debit

job 430 -WIP 3,400 debit

job 431 -WIP 7,900 debit

factory overhead 1,310 debit

wages payables 14,910 credit

--to record wages tickets--

job 429 -WIP 1,426 debit

job 430 -WIP 2,046 debit

job 431 -WIP 4,898 debit

factory overhead 8,370 credit

--to record applied overhead--

Explanation:

job 429 -WIP: 2300 x 62% = 1,426

job 430 -WIP: 3400 x 62% = 2,046

job 431 -WIP: 7900 x 62% = 4,898

total overhead: 8,370

7 0

3 years ago

Below are the transactions for Salukis Car Cleaning for June, the first month of operations.

Kruka [31]

Answer:

Part 1

June 1

Debit : Cash $53,000

Credit : Bank Note $53,000

June 2

Debit : Cash $23,000

Credit : Common Stock $23,000

June 7

Debit : Equipment $58,000

Credit : Cash $58,000

June 10

Debit : Supplies $6,300

Credit : Account Payables $6,300

June 12

Debit : Cash $3,300

Credit : Service Revenue $3,300

June 16

Debit : Salaries $730

Credit : Cash $730

June 19

Debit : Advertising $330

Credit : Cash $330

June 23

Debit : Trade Receivables $4,300

Credit : Service Revenue $4,300

June 29

Debit : Salaries $780

Credit : Cash $780

June 30

Debit : Utility Bill $1,230

Credit : Cash $1,230

June 30

Debit : Dividends $430

Credit : Cash $430

Part 2 & 3

Cash : Debit Side - $53,000 + $23,000 + $3,300, Credit Side - $58,000 + $730 + $330+ $780+ $1,230+$430 = $17,800 (debit)

Bank Note : Debit Side - Credit Side - $53,000 = $53,000 (credit)

Common Stock : Debit Side - Credit Side - $23,000 = $23,000 (credit)

Equipment : Debit Side - $58,000 Credit Side - = $58,000 (debit)

Supplies : Debit Side - $6,300 Credit Side - = $6,300 (debit)

Accounts Payable : Debit Side - Credit Side - $6,300 = $6,300 (credit)

Service Revenue ; Debit Side - Credit Side - $3,300 + $4,300 = $7,600(credit)

Salaries : Debit Side - $730 + $780 Credit Side - = $1,510 (debit)

Advertising : Debit Side - $330 Credit Side - = $330 (debit)

Accounts Receivables : Debit Side - $4,300 Credit Side - = $4,300 (debit)

Utility Bill : Debit Side - $1,230 Credit Side - = $1,230 (debit)

Dividends : Debit Side - $430 Credit Side - = $430 (debit)

Part 4

Trial Balance as at 30 June

Debit Credit

Cash $17,800

Bank Note $53,000

Common Stock $23,000

Equipment $58,000

Supplies $6,300

Accounts Payable $6,300

Service Revenue $7,600

Salaries $1,510

Advertising $330

Accounts Receivables $4,300

Utility Bill $1,230

Dividends $430

Totals $89,900 $89,900

Explanation:

The Accounting Process starts with recording transactions in the Journals. The Journals are then posted to the Account Affected and the balances of those Accounts are determined. The trial Balance is then prepared by extracting these balance to find the Debit and Credit Totals to check mathematical accuracy.

3 0

3 years ago