Answer:
The correct answer is self-management.
Explanation:
Self-management is a system of social and economic organization where the people who develop an activity are the same as managing that business.
That is, in a self-managed company, workers have absolute powers for decision-making and control of the institution.
Self-management is closely related to areas of plurality and deconcentration. So, if it lacks proper planning it can generate duplication of functions (two people or areas performing the same task) and inefficiency in the use of resources.
Self-management is the organization system of a company by which workers participate in all general decisions. In this way, employees are able to carry out administration, production, self-assessment and self-demand tasks. In addition, they own part of the company's share capital and, therefore, participate in the business benefits.
Answer:
(a)
Dr Investment in Gordon Corp. 230,400
Cr Cash 230,400
( to record investment in Gordon Corp.; calculated as 10 x 23,000 + 400)
(b)
Dr Investment in Gordon Corp. 18,400
Cr Share of Gordon Corp earning 18,400
( to record share of profit in Gordon Corp, calculated as % of Gordon Corp share owned x Gordon Corp's earnings = 23,000/100,000 x 80,000)
(c)
Dr Cash 45,000
Cr Investment in Gordon Corp. 45,000
( Record dividend receipt from Gordon Corp)
Explanation:
Further explanation, as Morgan Co. acquires 23% of Gordon Corp. ( 23,000/100,000); equity method should be applied.
Answer:
c) to increase their supply
Explanation:
A subsidy is an incentive or motivation from the government to private businesses or individuals. Subsidies are usually in the form of cash, tax breaks, loans, or grants. The government gives subsidies to support production in the sector it wishes to promote.
Subsidies lower the cost of production to the business. Consequently, an entity increases its production quantities and can supply the market at lower prices. Subsidies, therefore, increase supplies in the market at friendly prices.
This answer requires that we fill in the blanks
- The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealth
- The larger the NPV, the more value the project adds; and added value means a higher stock price.
- The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC
- When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project.
- When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.
What is the NPV?
In order to get the NPV we have to make the following calculations for the projects A and B.
This is calculated as
Project A
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
For the project B
We would have to perform similar calculation
Hence we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.
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