Answer:
Political and Legal
Explanation:
Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S. This is an example of how <u>political and legal</u> forces affect the marketing environment.
Business organisations operate within a political system and legal framework. Political factors determine economic policies like taxation and regulations. Business decisions are subject to, and are affected by political and legal factors.
Governments formulate a series of legislations to monitor business activities and protect consumer and social interests.
Such laws would either create new opportunities or threats for the businesses in existence.
In the Scenario above Hoffman-LaRoche and BASF AG must have violated regulations that protect consumer interests put in place by the government by wanting consumers to pay too high for such necessities as vitamins and huge fines have been imposed on them.
Answer:
b. She receives $10,000
Explanation:
Taxes owed = (1/4 of income) - $15,000.
Taxes owed = (1/4 x 20,000) - $15,000.
= 5,000 - 15,000 => -10,000
Hence, she receives $10,000 from the government.
A negative income tax is a system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government.
Answer:
The present value of the future earnings is $51,981,214.36
Explanation:
The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.
Taking the value in millions,
Present Value = 1 * (1+0.3) / (1+0.08) + 1 * (1+0.3)^2 / (1+0.08)^2 +
1 * (1+0.3)^3 / (1+0.08)^3 + 1 * (1+0.3)^4 / (1+0.08)^4 + 1 * (1+0.3)^5 / (1+0.08)^5 + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]
Present value = $51.98121436 million or $51,981,214.36
