Answer:
The highest net loss of $1,562.50 (i.e. – $1,562.50)
Explanation:
This can be calculated using the following equation:
Highest net profit possible = British pounds put option price per unit × Units of the pound option
= $0.05 x 31,250
Highest net profit possible = $1,562.50
However, based on the information provided in the question, the option will not be exercised and this will result into the highest net loss of $1,562.50 (i.e. – $1,562.50).
The journal entry of a building being purchased will be, a debit in the building account by $60,000; and the cash account and payables account will be credited by $20,000 and $40,000 respectively.
<h3>What is a Journal Entry?</h3>
A method of recording the monetary transactions of a business firm throughout a financial period, in such a way that effects of the same are reflected in the financial statements, is known as recording of journal entries.
Hence, the effect of the journal entry has been given above, and an image is also provided for better understanding of the concept for the readers.
Learn more about journal entry here:
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Answer:
A
Explanation:
As it is already mentioned that both businesses are different from each other, therefore, managing these two different business by having a one organizational structure will lead to confusion as in the case of question.
When two different business merge together this is called conglomerate integration.
Business merge together in order to enjoy the benefit of the term 'synergy' that means the whole is greater than sum of its parts. That bring definitely some advantages for the merged businesses.
But that too have disadvantages when the merged businesses failed to get benefits of the concept of synergy. That is, large businesses are difficult to manage, two different businesses require different set of management, and strategies.
