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3 years ago

Describe at least two advantages a large company has over a smaller company. (1-4 sentences.

2 answers:

4 0

A larger company can benefit from economies of scale, meaning they can get discounts by purchasing and producing in bulk which a smaller company wouldn't have the ability to do. A larger store also has the potential for higher revenue because they have more goods and services to sell.

timurjin [86]3 years ago

4 0

There are many advantages of having a large company over a smaller one.

As asked in the question, two main, of the many, advantages are described below.

Large companies are established companies. They have usually large number of stakeholders. So they are financially sound companies. They are usually not in a threat of being bankrupt. And they have a greater access to funding.

Secondly, they can somehow lower their costs when they are having huge sales volumes. This cannot be done by smaller companies.

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A decrease in the price of a good will lead to:_______

butalik [34]

Answer:

C. a movement down along the supply curve for that good.

Explanation:

A decrease in price would lead to a decrease in the quantity supplied and a movement down along the supply curve.

This is in accordance to the law of supply which says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

6 0

3 years ago

Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3. To maximize uti

IrinaVladis [17]

Answer:

Make no change in Y and Z.

Explanation:

It was assumed that consumer purchases the combination of two goods, Y and Z.

$\frac{MU_{Y} }{P_{Y}}= \frac{30}{2} = 15$

$\frac{MU_{Z}}{P_{Z}}=\frac{45}{3}=15$

For maximizing the utility of the consumer, the ratio of marginal utilities must be equal to the price ratio of the products.

We can see that the ratio of marginal utilities is equal to the price ratio of the products. Hence, the consumer should not make any changes to the combination of products.

7 0

3 years ago

A company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to

asambeis [7]

Answer:

Replacing the old machine would produce a net saving of $1,300

The sunk cost in this situation is the purchase cost (i.e $105,000) of the old machine.

Explanation:

Differential Analysis

Purchase cost of the new machine (83,000)

Savings from annual variable cost(8500×8) 68,000

Variable cost of running the new machine (5,000×8) (40,000)

Scrap value of the old machine 56,300

Differential savings 1,300

Replacing the old machine would produce a net saving of $1,300

The sunk cost in this situation is the purchase cost (i.e $105,000) of the old machine. It is a past cost incurred as a result old decision.

7 0

3 years ago

Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer with a fair value o

UNO [17]

Answer:

Dr Computer $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset $20,000

Cr Gain on disposal of truck (Balancing Figure) $800

Cr Cash Account $500

Explanation:

The disposal of a Fixed asset is a three step procedure and is given as under:

Remove the Accumulated depreciation and the cost of the fixed asset
Record the receipt of the consideration at Fair Value
Record the payment or receipt of the cash

Always remember that the balancing figure will go to Profit and loss statement.

Step1: Remove the Accumulated depreciation and the cost of the fixed asset

The asset value and the accumulated depreciation would be removed from the books of accounts and the balance figure would be transfered to profit and loss account.

Dr Accumulated Depreciation $18,000

Dr Profit & Loss Account $2,000

Cr Truck - Fixed Asset $20,000

Step2: Record the receipt of the consideration at Fair Value

Dr Computer - Fixed Asset $3,300

Cr Profit and Loss Account $3,300

Step3: Record the payment or receipt of the cash

The receipt of the payment will treated as:

Dr Profit and loss Account $500

Cr Cash Account $500

The aggregate Effect if I summarizee would be:

Dr Computer $3,300

Dr Accumulated depreciation-Truck $18,000

Cr Truck - Fixed Asset $20,000

Cr Gain on disposal of truck (Balancing Figure) $800

Cr Cash Account $500

8 0

3 years ago

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his c

qaws [65]

Answer: $106,250

Explanation: Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05).

He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

4 0

3 years ago