Answer:
B
Explanation:
Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.
It is expressed in years and fraction of years.
Initial investment 20,000
Year 1 3000 17000
Year 2 8000 9000
Year 3 15,000
9000/15000= 0.6 years
The payback period = 2.6 years
Answer: a. Demographic and Economic .
Explanation:
In Mayor's clinic analysis of the future, it was stated that both the economic and demographic trends looked bleak.
Answer:
A major problem with the implementation of an annually balanced budget is that it magnifies the fluctuations in the business cycle.
Answer:
$306.67
Explanation:
The accrued interest is of 23 days which must be accounted for in the books of accounts.
The interest for 120 days = $80,000 * 6% * 120 / 360 = $1600
Now we will find interest for 23 days (July 31 MINUS 8 July).
Interest for 23 days = $1600 * 23 / 120 = $306.67
So the interest that has accrued at the end of the year is of 23 days and is $306.67.
Answer:
Diverstiture or Selling assets from another division to pay for Bryan Food
Explanation:
Divestiture
This is the process of disposing a company's business unit or assets through bankruptcy, closure, exchange or sale for different purposes.
Reasons for DIvestiture
1. To sell off redundant business units - business units that are not being used or not generating income but are incurring expenses can be sold off to get some gains.
2. To generate funds - Selling a business unit for cash is a source of income. This is the choice or last resort of Sara Lee to acquire Bryan Foods
3. To ensure business survival or stability- Can be an option to declaring complete bankruptcy or closing off business completely
4. To increase resale value- Selling individual unit assets of a business is more profitable than selling the organisation assets en-mass or as a whole piece
Sara Lee Corporation and Bryan Foods
Sara Lee already has a variety of industries, apparently from these variety there are those ones that after much consideration could be redundant units or a not generating as much income or profit as expected.
Because Bryan Foods represents 'a tremedous' opportunity, with the potential to make Sara Lee more successful, the last resort is to pick assets or business units in Sara Lee that may be redundant or potentially generate less than Bryan Foods will and sell them in order to acquire Bryan Foods.
This is the last resort for Sara Lee.
