Answer:
A. Mary produces only cakes while Tim produces only pies
Explanation:
I will start by describing the concept called comparative advantage. Comparative advantage can be described as a businesses ability to produce at a reduced or lower opportunity cost than others. Given this definition, we can see that Mary's opportunity cost of producing cakes is lower than Tims opportunity cost. So Mary has an advantage over Tim in the production of cakes. So the answer to this question is A. Mary should specialize in the making of cakes while Tim should specalize in pie making
Answer:
Net Cash outflow from investing activities = $28 million
Explanation:
Investing activities are the activities in nature to acquire/sell assets, which will generate future economic benefits, and income thereof from such assets.
Out of the above provided information, following are investing activities
- Cash paid to acquire a patent $48
- Proceeds from sale of land and buildings $75
- Investment revenue received $15
- Cash paid to acquire office equipment $70
Net Cash outflow from investing activities = $48 - $75 - $15 + $70 = $28 million
Note:
- Treasury stock is purchase of own equity from market thus is a part of financing activity.
- Proceeds from sale of land and building is to be considered and the net gain from such transaction is deducted from operating income in cash flow statement.
- Cash paid to acquire office equipment is for future long term benefit and is part of investing activity.
Net Cash outflow from investing activities = $28 million
Answer:(a) $8,900
(b) -($4,200)
(c) -($13,100)
(d) -($13,100)
Explanation:
Given that,
Amount invested by shareholders = $230,000
Debt securities purchased for cash = $101,000
Received cash interest on securities = $8,900
unrealized holding loss on these securities = $13,100
(a) Net Income = $8,900(Cash interest received)
(b) Comprehensive Income = Net Income - unrealized holding loss
= $8,900 - $13,100
= -($4,200)
(c) Other Comprehensive Income = unrealized holding loss
= -($13,100)
(d) Accumulated other comprehensive income:
Ending Balance of other comprehensive income = Beginning Balance + During this year
= $0 + (-$13,100)
= -($13,100)
Answer:
The correct answer would be Differentiation Strategy.
Explanation:
There are three generic strategies of Porter. One is Cost Leadership, other is Differentiation and the last one is Focus.
Among these strategies, Differentiation is the strategy which is used by the bank in this question. Differentiation is a strategy used by the companies to make them unique in the industry through some dimensions which are highly valued by the customers or clients of that company. For Example in this question, the bank provides the facility of transferring money in an account by just snapping a shot of check and depositing it into that account. This feature make them unique in the banking sector. So this is called the differentiation strategy.
Answer:
D) inflation.
Explanation:
Inflation is a persistent rise in general price levels. It is when too much money is chasing few goods.
Increasing the discount rate and reserve requirement are forms of contractionary monetary policies.
Contractionary monetary policies are usually embarked upon when the Fed wants to reduce the money supply in the economy.
Reducing the money supply helps reduce the inflationary pressures.
I hope my answer helps you.