Answer:
Cash 2,214,007 debit
bonds payable 2,000,000 credit
premium on B.P 214,007 credit
Explanation:
To know the proceeds for the bonds we will calculate the present value of the coupon payment and the present vlaue of the maturity at market rate:
The coupon payment will be an ordnary annuity
Coupon payment: 2,000,000 x 0.05 = 100,000
time: 10 years x 2 payment per year = 20
rate 8.5% annual rate: 0.085/2 = 0.0425 semiannual rate
PV $1,329,436.5808
Whilethe maturity the present value of a lump sum
Maturity 2,000,000.00
time 10 years to maturity
rate 0.085
PV 884,570.83
PV coupon payment $1,329,436.5808
PV maturity $884,570.8301
Total $2,214,007.4109
facevalue 2,000,000
premium 214,007
Answer:
The organization structure is not clearly defined, Managers are performing duties in various departments at a time.
Explanation:
San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.
Questions 1: Planning, organizing, leading and controlling
Question 2: The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.
Question 3: The profits of San consulting will rise as there will be less duplication of work and every employee will be able to focus on their own task and will work with efficiency.
Question 4: Matrix. The matrix organizational structure is not suited in this organization. The right organizational structure for San consulting will be Functional Structure.
Question 5: (i) The profits for San Consulting will decline
(ii) The profit will rise because employee will focus more on their specific tasks.
1B. Yes agree. The managers need to focus on the external environment as well to identify the opportunities and threats present which can stimulate changes for the organization.
Answer: B and A
Explanation: Economic growth is the increase in the productive capacity of the economy. There will be a decrease in economic growth if more capital per hour is used as a result of the diminishing returns to capital.
Some economies maintain high growth rates despite diminishing returns to capital through the use of enhanced or better technology, coupled with accumulating capital. There are growth in such economies because unlike capital, technology is subject to increasing returns.
Answer:
Firm should operate.
Explanation:
Here, we are assuming that this is a situation of short run.
A firm will operate or shut down is totally dependent upon whether the firm will be able to cover its variable cost of not. If a firm will be able to cover all of its variable cost then this firm will not shut down and operates in the short run until it covers all of its variable costs.
In this case, given that,
Total revenue = $1,000
Total cost = $1,500
Variable cost = $500
Profits = Total revenue - Total cost
= $1,000 - $1,500
= -$500
Therefore, this clearly shows that this firm will be able to cover its variable cost of $500 with the total revenue of $1,000. That's why the firm remains in the market even there is a loss of $500.
Hence, this firm should operate.