Answer:
$20,000
Explanation:
For computing the Doug withdrawal amount, first, we have to compute the net income or net loss which is shown below:
Net income/loss = Revenue - expense
= $350,000 - $380,000
= -$30,000
Now Doug share in net loss = Net loss × (his share ÷ total share)
= - $30,000 × (2 ÷ 6)
= - $10,000
We knew that the Doug capital is $30,000 and his share in loss is $10,000
So, its withdrawal amount = $30,000 - $10,000 = $20,000
Answer:
Self-interest in a market system will automatically promote the public interest as well.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.
The "invisible hand" concept asserts that the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.
This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.
In conclusion, the invincible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.
a Development Financial institution (DFi) is defined as “an institution endorsed or supported by Government of india primarily to provide devel- opment/Project finance to one or more sectors or sub-sectors of the econ- omy. ... these DFis are also known as Development banks.
Answer:
a. 5.37%
b. 5.08%
Explanation:
Firstly, we need to calculate net profit before return on stockholder's equity
Sales. $4,430,000
Net income % on sales 2%
Net income. $88,600
We will also calculate total stockholder's equity
Sales. $4,430,000
Asset turnover ratio. 4.5
Total assets. $984,444
Less: current liab. ($167,000)
Less: long term liab. ($342,000)
Total stockholder's. $475,444
equity
a. Return on stockholder's equity
= Total stockholder's equity ÷ Net income
= $475,444 ÷ $88,600
= 5.37%
b. New return on stockholder's equity
Total assets $984,444
× Asset turnover ratio. 4.75
New total sales. $4,676,109
Net income % sales. 2%
Net income $93,522
Recall that total stockholder's equity = $475,444
Net income = $93,522
Therefore, New return on stockholder's
equity = Total stockholder's equity / Net income
= $475,444 ÷ $93,522
= 5.08%
Answer:
D. Land and construction costs are comparatively less expensive in Russia than in Canada
Explanation:
Option D would favor Russia ahead of Canada because of the fact that manufacturing costs are cheaper and they have easier access to Capital. I came to this conclusion since it has been stated that land and construction costs are cheaper in Russia.
In Economics the goal of every firm is to minimize cost and to maximize profit. Option D is cost minimizing for cool cars if they want to duplicate their overall success.
