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3 years ago

5

My Work Ramon works for a large company that is considering starting a new business unit to sell personalized coffee mugs. He ha

s been tasked with the preliminary research for the industry analysis. His analysis should begin with:

1 answer:

aleksandrvk [35]3 years ago

8 0

Defining the new company's industry and strategic group

Explanation:

Benefits of Strategic Group Analysis:

Identify direct competitors and the basis of competition.

Movement of other organizations from one strategic group to another
Identify opportunities
Identify problems

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A ________ is a network of activities for accomplishing a business function.

xeze [42]

Answer:

busness process

Explanation:

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2 years ago

Which of the following could result in the termination and liquidation of a partnership?1) Partners are incompatible and choose

Natalka [10]

Answer:

E) 1, 2, and 3

Explanation:

A partnership is a very flexible business which is very easy to set up but has some disadvantages also and they include:

partners have unlimited liability.- if losses are expected to continue, then the partners will probably decide to liquidate the partnership.
risks of disagreements between the partners.- if the partners are incompatible and cannot agree upon the decisions that need to be made, the partnership will probably be liquidated
if the partners decide to leave because they retire then the partnership will probably have to be liquidated unless a new partner replaces the one that leaves or the other partners buy his/her share of the partnership.

8 0

3 years ago

Why net profit will be higher if increases average prices to customers?

vampirchik [111]

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

6 0

3 years ago

You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your

soldi70 [24.7K]

Answer:

XYZ

a. The Effect on Income Before Taxes of the Change of Ageing Analysis:

The Income before Taxes would be $45,000 ($180,000 - $20,000) - ($135,000 - 20,000) more than the income that should have been reported. Assuming the Income Taxes were to be based on the increased income figure, XYZ would have an increased tax liability by say $18,000 (45,000 x 40%). This reduces the Retained Earnings (or Stockholders Equity) by $18,000. The company would in actual fact, be reporting a net income of $27,000 more than it should have reported. This is very deceptive for all those who would be using the reported financial statement in making their decisions. Unfortunately, we would have showed the affected customer that we are dubious in our business practise, further jeopardizing the chance of full recovery of the debt. This is apart from taking into consideration the type of customer that would be ready to accept a revised invoice that was formerly past due.

b. The ethical dilemma is doing the right thing according to Rights Theory. We cannot say we have adhered to a set of rules (the U.S GAAP or the IFRS) when in fact we are violating an important rule of fair presentation of the elements of the financial statement.

I would try to convince the controller to rescind his suggestion and follow the rules. We understand that making allowance for uncollectibles is an estimate based on judgement. However, since we have established the basis and even stated it in the notes to the financial statements, I think that we should follow through.

Explanation:

The year's Uncollectible Expense should be $160,000 ($180,000 - $20,000). If the allowance for the year were to be adjusted from $180,000 to $135,000, it means that the Uncollectible Expense would then be $115,000 ($135,000 - $20,000). We will be under-reporting the Uncollectible Expense by a difference of $45,000 ($160,000 - $115,000), thereby boosting the net income before tax by $45,000.

4 0

3 years ago

Jing Company was started on January 1, Year 1 when it issued common stock for $28,000 cash. Also, on January 1, Year 1 the compa

denpristay [2]

Answer:

5,280 net income for the Year 3

Explanation:

This would be the situation:

17,400 revenue

11,000 expenses

gain/loss on sale of equipment

= net income year 3

To know the result of the sale of equipment we have to do

sales price - book value = gain/loss on sale of equipment

8900 - book value = gain/loss

We have to determinate the book value.

book value = adquisition cost - acumulated depreciation

The equipment cost 15,200 + 1,300 transportation cost = <u>16,500 Adquisition Cost</u>

acumulated depreciation = depreciation per year * 3 years

and depreciation per year is:

$\ $ depreciation per year $= \frac{Adquisition Value - Salvage Value }{Useful Life}$

Here we have all the values, so we stop digging and start solving.

<em>depreciation </em>= (16,500-5,700)/5 = 2,160

<em>acumulated depreciation</em> = 2,160 * 3 = 6,480

<em>book value</em> = 16,500 - 6,480 = 10,020

<em>gain/loss </em>= 8,900 - 10,020 = -1,120 LOSS on sale of Equipment

net income = 17,400 - 11,000 - 1,120 = 5,280 net income for the Year 3

6 0

3 years ago