Answer:
d. the business judgment rule will not apply.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.
A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.
Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.
In Business management, if a court of competent jurisdiction determines that a manager's corporate decision amounted to self-dealing i.e putting his or her own interests first, the business judgment rule will not apply.
Generally, in order for the business judgement rule to apply, it is expected or required that a manager should act in the best interest of a corporation.
Answer:
exist 139,200
Explanation:
Assume that Pell allocates manufacturing overhead based on machine hours, estimated 10,000 machine hours and exist 87,000 that implies that the standard cost per machine hour = exist 87,000 / 10,000 = 8.7 exist
Therefore the manufacturing overhead costs if Pell actually used 16,000 machine hours will be: 16000 x 8.7 = exist 139,200
Answer:
Required 1
<u>January 1</u>
Cash $340,000 (debit)
Note Payable $340,000 (credit)
Required 2
$27,200 goes toward interest expense.
Explanation:
<u>Issuance of the Note :</u>
Assets of Cash are increasing, the Liabilities are also increasing.
<u>Payment at December 31 :</u>
The Annual Payment comprises of Capital Repayment and Interest Expense.
Prepare an amortization schedule using the details of the Note highlighted below to separate the Capital Repayment and Interest Expense Component :
PV = $340,000
PMT = - $85,155
N = 5
i = 8%
P/yr = 1
FV = $0
Note Schedule is attached !
Answer:
102.47 and 20
Explanation:
What is economic order quantity?
EOQ or the economic order quantity is the level of inventory which is the most optimal level for reducing inventory costs. It assumes that the supplier will supply as and when required and follows a just in time policy.
Now that we are familiar with the concept, let's recall the formula:
EOQ= SQRT( 2* D *k /h)
D - Annual demand, which is 700
k - Replenishment cost, which is $15
h - holding cost, which is 10% of inventory value = 0.1 × $20 = $2
So, EOQ = SQRT(2 * 700 * 15/2) = 102.47 units
Reorder point = daily demand * lead time + safety stock = 700/365*5+10=20 Units
