Answer: cost
Explanation: In a market economy, the price of the product or service offered are determined by the market forces of demand and supply. Govt. intervention in regulating the market forces is minimal in such markets.
Thus, if the entrepreneurs produce goods at a low cost they will price it low leading to high demand for their product. Thus, they will be compensated well if they cost their product lower than others.
Answer:
C)The claims of creditors are reported as liabilities while the claims of investors are recorded as stockholders' equity.
Explanation:
In a businesses balance sheet, Creditors claims are shown as liabilities. Liabilities show the amount of financing that creditors provided which could be in the form of debts or obligation. Debtors owe creditors an obligation, and this obligation is to pay back. Investors claim are recorded as stockholders equity
Answer:
Explanation:
- The bond was issued under this conditions:
$25,000,000 7.8%
Period Capital Interest
2017.I $25,000.000 $ 975.000
2017.II $25,000.000 $ 975.000
- But the market accept under this conditions.
$24,505,180 8%
Period Capital Interest
2017.I $24,505,181 $ 980,207
2017.II $24,505,181 $ 980,207 $1,960,414
- The company recognized interes by $1,960,414
Answer:
Option B is correct ( Will any of the fixed costs go away? If yes, ignore them in the decision process)
Explanation: