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3 years ago

A disadvantage of contingency funds is:

Business

1 answer:

kramer3 years ago

4 0

Answer: B) it is difficult to ascertain across what project activities contingency funds should be applied.

Explanation:

Contingency funds are needed to make sure that a company remains stable by being able to use these funds to take care of emergency needs as opposed to getting loans at short notice.

Contingency funds however have the disadvantage of being difficult to apply because it is difficult to ascertain across what project activities contingency funds should be applied.

If a project is going awry, determining exactly which part to apply the contingency funds has always been a hassle because knowing exactly where to apply the funds to, to get the project stable is not an easy task abd one could end up applying it to the song part therefore bringing doom to the project.

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Based on the following information for Montana Investments, Inc., compute the rate of return on total assets. (Round the perce

11Alexandr11 [23.1K]

Answer:

Return on Total asset is 16.18%.

Explanation:

Total Assets, December 31, 2019 $195,000

Total Assets, December 31, 2018 $151,000 For Year Ended December 31, 2019

Interest Expense $7,000

Net Income $28,000

Return on Total Asset = Net Income / Average total Assets

Return on Total Asset = $28,000 / $173,000

Return on Total Asset = 0.1618 = 16.18%

Average total Assets = ( Beginning Assets balance + Ending total Assets balance ) / 2

Average total Assets = ( 151,000 + 195,000 ) / 2 = $173,000

3 0

3 years ago

When diversification combines two businesses in different industrial sectors, the key determinant of whether the diversification

Anton [14]

, the key determinant of whether the diversification creates value would be: whether the diversification <span>enhances the competitive advantage of either or both of the two businesses

Here is an example of business combination in different sectors that create a value.

Let's say that a mobile manufacturer called company x (from electronic sector) combines its-self with an animation company (from entertainment sector).

Company x could obtain value from this combination by rewarding free movie/tv shows subscription for every mobile phone that they sold. By doing this, the sales in both sectors will be increased

</span>

4 0

4 years ago

At a Schlage Lock factory, many employees are needed to use tiny screwdrivers and other tools to carefully assemble the inner wo

ELEN [110]

Answer: (A) Labor-intensive technology

Explanation:

The labor- intensive technology is one of the type of process in which an organization or any type of industry require maximum labors for producing the various types of products and the services.

The main objective of the labor-intensive technology is that expanding the business and this type of industry is basically determine by the actual requirement of the capital for producing the maximum goods and the services.

According to the given question, the given production process of the Schlage lock factory is best describe as the labor intensive technology process. Therefore, Option (A) is correct answer.

3 0

4 years ago

When you purchase an existing business why is it important to know the owners reason for selling

Neporo4naja [7]

Because maybe they were problem with the business like they might need reapairs or a bad location to make porfit.Or he just want to get rid of it to make it someone else problem

5 0

3 years ago

Compute the selling price of a bottle of laundry detergent that has a cost of $8.75 and a markup percentage of 40%

blondinia [14]

There are different methods of pricing. One method is cost based pricing. The other methods are market based pricing such as competitor pricing, penetration pricing and psychological pricing. The given question is based on cost-based pricing which involves adding a mark-up. In the given the case mark up is $3.5 ($8.75 x 40%). Hence the selling price of the detergent would be $12.25 ($8.75+$3.5)

5 0

4 years ago