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blondinia [14]
4 years ago
14

Explain two barriers to entry for a new business

Business
2 answers:
Marianna [84]4 years ago
6 0

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). <em>Government regulation</em>- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). <em>Economies of scale</em>- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.


sp2606 [1]4 years ago
4 0
For the answer tot he questions above, one of the barriers to entry is CAPITAL REQUIREMENTS. the financial resources required for infrastructure, machinery, R&D and advertising. Startups may get around capital requirements by outsourcing parts of the operation to companies that can leverage existing investments.
The other one is ACCESS TO DISTRIBUTION CHANNELS. This can be a barrier if logical distribution channels have been locked up by incumbents.
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On December 1, Christy Co. accepted a 60-day, 6%, $1,000 note due January 30. On December 31, the appropriate year-end adjusting
muminat

Answer:

Entry for the repayment involve a Debit of Note Payable of $1,060 and a Credit of Cash of $1,060.

Explanation:

By January 30 , 2 months interest would have expired and the journal entries are as follows :

December 31

Interest expense $30 (debit)

Note Payable $30 (credit)

January 30

Interest expense $30 (debit)

Note Payable $30 (credit)

Thus the <em>repayment will be at the carrying cost </em>of the note payable as follows :

Note Payable $1,060 (debit)

Cash $1,060 (credit)

Conclusion :

Entry for the repayment involve a Debit of Note Payable of $1,060 and a credit of Cash of $1,060.

3 0
3 years ago
The claim is that the proportion of peas with yellow pods is equal to 0.25 (or 25%). The sample statistics from one experiment i
kobusy [5.1K]

Answer:

2.361

Explanation:

Calculation to Find the value of the test statistic

Based on the given information let our:

p=0.25

x = 159

n = 540

Since our p is 0.25 the first step is to find q using this formula

q = 1 - p

Let plug in the formula

q = 1-0.25

q= 0.75

Second step is to find the psample using this formula

psample= x/n

Let plug in the formula

psample= 159/540

psample = 0.294

Last step is to find the value of the test statistic

Using this formula

z= (psample - p) / √(pq/n)

Let plug in the formula

z = (0.294 - 0.25) / √(0.25×0.75/540)

z=0.044/√(0.1875/540)

z=0.044/√(0.000347222222)

z=0.044/0.01863389

z=2.361

Therefore the value of the test statistic will be 2.361

5 0
3 years ago
Suppose you bought a bond with an annual coupon rate of 7.4 percent one year ago for $897. The bond sells for $926 today. a. Ass
stiv31 [10]

Answer:

Total dollar return is $103.00

Explanation:

The total dollar return on the investment comprises of the increase in price as well as the annual coupon of 7.4% of face value received over the holding period of one year.

annual coupon=face value*coupon rate=$1000*7.4%=$74.00

increase in bond's price=$926-$897=$29.00  

Total dollar return on investment=$74.00+$29.00  

Total dollar return on investment=$103

8 0
3 years ago
In 1895, the first Putting Green Championship was held. The winner’s prize money was $170. In 2016, the winner’s check was $1,39
Gre4nikov [31]

Answer:

a. The percentage increase per year in the winner’s check over this period was 7,73%

b. The winners prize at 2046 will be $12,975,215,98

Explanation:

a.

\sqrt[(2016-1895)]{(1390000/170)}

\sqrt[121]{8176,47}

0.0772965

b.

FC=IC*(1+0,0773)^{30}

FC=1,390,000*(1+0,0773)^{30}

5 0
3 years ago
A company's 5-year bonds are yielding 7.75% per year. treasury bonds with the same maturity are yielding 5.2% per year, and the
dangina [55]

Answer: The default risk premium on corporate bonds is 1.55%.

The  nominal rate of return on bonds can be expressed as a sum of the premiums on the many types risks associated with corporate bonds.

The nominal interest rate (r) formula is:

mathbf{r = r^{*}+IP+DRP+MRP+LP}

where

r is the nominal rate of interest

r* is the real interest rate

IP is the average inflation risk premium

DRP is default risk premium

MRP is the maturity risk premium and

LP is liquidity premium

Substituting the values we get

7.75 = 2.3+2.5+DRP+0.1(5-1)+1

7.75 = 6.2+DRP

7.75 -6.2 = DRP

\mathbf{DRP = 1.55}

8 0
3 years ago
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