Which element of a business does the following statement represent?

The process in which entrepreneurs test their business models on a small scale before committing serious resources to launch a b

Artist 52 [7]

Answer: Business Prototyping

Explanation:

The business prototyping is one of the concept that helps in understanding all the industrial standard procedural by applying the similar type of method and ideas in the business organization.

In the inventing process it is essential for creating the business prototyping process based on the specific vision.

According to the given question, the business prototyping is used by the entrepreneurs for the purpose of testing the business model before their launch on very small scale.

Therefore, Business prototyping is the correct answer.

8 0

3 years ago

Billy's is currently an all equity firm that has 115000 shares of stock outstanding at a market price of $36.22 a share. The fir

Len [333]

Answer:

So, Break-even EBIT is $265,643.45

Explanation:

Let Break-even EBIT be $x

Number of shares outstanding = 150,000

Current Price of share = $39.36

EPS = EBIT / Number of shares outstanding

EPS = $x / 150,000

Levered Plan:

Value of Debt = $100,000

Interest Rate = 9.6%

Interest Expense = 9.6% *$100,000 = $9600

Number of shares repurchased = $100,000 / $39.36

Number of shares repurchased = $2,541

Number of shares outstanding = 150,000 - 2,541

Number of shares outstanding = 147,459

EPS = (EBIT - Interest Expense) / Number of shares outstanding

EPS = ($x - $9600) / 147,459

EPS under All equity plan = EPS under levered plan

$x / 150,000 = ($x - $9600) / 147,459

147,459 * $x = 150,000 * $x - $675,000,000

$675,000,000 = 2,541 * $x

$x = $265,643.45

So, Break-even EBIT is $265,643.45

3 0

4 years ago

On August 15, it sold 30 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after

kirill [66]

Answer: $210

Explanation:

When using the First In First Out (FIFO) method of Inventory Valuation, the company sells the goods that it acquired earliest first and then sells the goods acquired later last.

This company sold 30 units on August 15.

That would mean that using FIFO, the company sold all of its August opening inventory of 15 units. It also sold all 10 units purchased on August 5th and then sold 5 units from the August 12th purchase of 20 units.

= 15 + 10 + 5

= 30 units

This means that the only units left are;

= 20 - 5

= 15 units of the August 12th purchase are left.

Units cost $14 each.

Value of Inventory after sale = 15 units * 14

= $210

6 0

3 years ago

The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over

Lostsunrise [7]

Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).

Explanation:

Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.

The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.

7 0

4 years ago

The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting ent

Anarel [89]

Answer:

a. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Explanation:

Before adjustment at the end of the year, the balance in the prepaid insurance account is $27,000

a. The amount of insurance expired during the year is $20,250. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The amount of unexpired insurance applicable to future periods is $6,750. The amount of insurance expired during the year = $27,000 - $6,750 = $20,250

The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

8 0

3 years ago