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If $500 cash and a $2,000 note are given in exchange for a delivery truck for use in a business ,The stockholders equity is increased.
Stockholders' equity, also referred to as shareholders' or owners' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders' equity might include common stock, paid-in capital, retained earnings, and treasury stock
Conceptually, stockholders' equity is useful as a means of judging the funds retained within a business. If this figure is negative, it may indicate an oncoming bankruptcy for that business, particularly if there exists a large debt liability as well.
- Stockholders' equity refers to the assets remaining in a business once all liabilities have been settled.
- This figure is calculated by subtracting total liabilities from total assets; alternatively, it can be calculated by taking the sum of share capital and retained earnings, less treasury stock.
- A negative stockholders' equity may indicate an impending bankruptcy.
Learn more about stockholders' equity here
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Answer:
Option(c) is the correct answer to the given question .
Explanation:
The minimum transfer price is the marginal cost of making one item.or we can say that The net price covers direct labor, direct inventory and direct operating costs but avoids the expenditures cost that would be sustained by the distribution hub .
- The minimum transfer price is equal to the variable cost So in the given question $90 is the variable cost from M to T therefore the minimum transfer price from M to T is $90 So that shareholder value is maximized.
- All the other option will not give the shareholder value maximization that's why they are incorrect option .
Answer:
Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.
Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).
During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.
Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment
Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.
Explanation:
The profit maximizing output level for a monopolist is where the MARGINAL REVENUE EQUALS THE MARGINAL COST.
In order for a monopolist to determine the profit maximizing level of output, he has to gather information about market demand, product price and cost of production for different level of output. The data gathered can then be used to determine the various types of cost that are expended by the company and this can be represented on a graph. The point at which the marginal revenue equals the marginal cost is the point of profit maximum level of output for the company.