The CRT TV becomes an inferior good because the good becomes perceived as being of lower quality than a flat screen TV. Inferior goods are goods whose demand decreases when consumer income rises or their demand decreases when the consumer income decreases unlike normal goods. The demand of such goods declines as the level of income or real GDP in the economy increases. Normal goods experiences an increase in demand along with increase in the income level.
Answer:
The journal entry for the issuance of the stock is shown below:
Explanation:
Land A/c....................................................................................Dr $236,000
Building A/c...............................................................................Dr $378,000
Common Stock A/c..................................................................................Cr $192,000
Paid in Capital in excess of par value of Common stock A/c.......Cr $422,000
Working Note:
Common Stock = Number of shares × Rate per share
= 24,000 × $8
= $192,000
Paid in Capital in excess of par value of Common stock = (Land + Building) - Common Stock
= ($236,000 + $378,000) - $192,000
= $614,000 - $192,000
=$422,000
Answer:
1,980,000 $40
Explanation:
The following is given;
No. of outstanding shares = 13,200,000
Unit stock price = $50
Acquisition by the unfriendly outside group= 15%
The existing stockholders buy new shares at 20% below $50.
It is worth learning that poison pill is a tactic used by a company that's threatened with an unwelcome takeover bid to make itself unattractive to the bidder. Through the tactic, the company sells a large number of stocks to existing shareholders at lower prices. Thus,
a) the No. of shares to be sold to the unfriendly group
= 15% * 13,200,000 = 1,980,000
b) They will buy at 20% below $50 which translates to
$50*( 1- 0.2)
$50*0.8 = $40
Thus, the new purchase price will be $40 per stock
<u>Answer: </u>Option D
<u>Explanation:</u>
Decision making means the important and timely action that needs to be taken. Decision making has six steps involved in the process the first step is to identify the problem or the decision to be made. In the second step the possible alternatives solutions are listed. Third step is to identify the consequences of the alternatives and ways it affects other peoples.
Fourth step is to consider the values before taking the decision. Fifth step is to make decision and take action accordingly. The final and sixth step is to evaluate the decision made.
Situational
Leadership as a theory was developed by Dr. Paul Hersey in the late 1960s which
aims to give further understanding between the leaders and its members. The
fore cores of the theory are to ‘Diagnose’ (knowing the situation), ‘Adapt’
(Change the behaviors of the members in the level of the situation), ‘Communicate’
(letting the members understand the situation) and ‘Advance’ (further the
developments). This is of course very helpful as its gives the leaders
(managers) the opportunity to adjust themselves according to the situation.
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