The basic principles of human relations approach are :- Human beings are not interested only in financial gains. They also need recognition and appreciation. Workers are human beings. So they must be treated like human beings and not like machines.
I would suggest it would most likely to be either A or B or both, however if I had to pick one I would go for A.
A - The question suggests you may have been putting more effort and <span>enthusiasm</span> into sales of the products for your new business "<span>you were so excited about the large volume of orders you had" which may mean after your first year of business you may have started to slack of or get complacent with putting you business out there marketing wise, also when launching a product for the first time people are interested in the new and latest thing (such as a new business) after a while people start to forget unless you have marketing and advertising to remind them.
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B - If the product you offer is unique and you were the first business to sale this / these items then after a year it is possible other competitors have started to copy you however this would completely depend on the products you sale.
C - Given you already had large orders in the first year people are happy to pay for the products you offer so this would exclude C.
D - If you have already had many orders in the first year people obviously want the products you sale even if you only sale 1 or 2 things so unlikely to be D.
Answer:
Explanation:
Given that:
annual demand = 7800 units
wholesale price = $325
retail price = 399
The per-unit cost for each item = $399 per unit
The annual cost to purchase the items = Annual demand × wholesale price
= annual demand × price of the wholesales
= 7800 × 325
= $2535000
Answer:
Option (B) is correct.
Explanation:
Cost of Equity (Ke) = Rf + Beta ( Rp)
where,
Rf = risk free rate
Rp = Market risk premium
Hence,
Beta systematic risk
:
= 7% + 1.7 (6%)
= 7% + 10.2%
= 17.2%
Post Tax cost of debt:
= Kd ( 1 - T)
where,
Kd = cost of debt
T = tax rate
= 20% * (1-0.4)
= 12%
WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]
where,
We = weight of equity
Wd = weight of debt
= [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]
= 10.32% + 4.80%
= 15.12%
Answer:
Goodwill is:
The excess of the fair value of a business over the fair value of all net identifiable assets.
Explanation:
This definition of Goodwill implies that it is usually acquired by the purchaser of another business, when it pays a price higher than the fair market value of the other company's net assets. It is not a physical asset like property, plant, and equipment, but intangible.
Goodwill arises from a company's good reputation, loyal customers or clientele base, brand identity, talented workforce, and proprietary technology.
Goodwill does not have a definite life and under US GAAP and IFRS standards. Therefore, it is not amortized like other intangible assets but is evaluated for impairment every year.
