I think the answer is <span>unit-elastic over this price range. This happens when a company earns the same revenue even with some slight changes on the prices. It means that slight increase or even decrease in price does not affect the revenue of the company.</span>
Answer:
$7,500
Explanation:
Lee, Inc. acquired 30% of Polk Corp.'s voting stock on January 1, Year 1 for $100,000.
During Year 1, Polk earned $40,000 and paid dividends of $25,000.
Therefore Lee's dividend income = 0.3 x 25,000 = $7,500
Before income taxes, the amount that Lee should include in its Year 1 Income Statement as a result of the investment will be the dividend earned in year 1 which is $7,500
The question is incomplete, it lacks option.
A) Brand loyalty
B) Demographic forces
C) Political forces
D) Brand positioning
E) Economies of scale
Answer:
Economies of scale
Explanation:
Economies of scale can be described as a reduction in cost, this occurs when companies increases the rate of their production.
Economies of scale can also be reffered to as a process whereby an organization becomes more efficient and therefore reduces the costs of their products.
Economies of scale can be greatly influenced by a large amount of capital which is made available to companies to improve their various operations.
Noncontrolling interests are entitled to preference in dividends and payouts in liquidation is not a correct statement about noncontrolling interest.
Option B
<u>Explanation:
</u>
Non-controlling interest (NCI) is the part of the equity in a corporation not directly related to a parental company that has a controlling interest (above 50% but below 100%) and strengthens the financial results of the corporation with its own.
Suppose, for example, that Alpha acquires 80 percent of Sierra's outstanding stock. As Alpha controls over 50% of the Sierra region, Alpha consolidates the financial performance of Sierra that has its own financial results.
Alpha's balance sheet reports as NCI 20 percent of the Sierra equity which Alpha does not own. In proportion to their amounts of holding, the Incorporated Net Income is assigned to parental and non-controlling interest parties (minority shareholders); 80% to Alpha and, in this situation, 20% to un-controlling interest.
Demand curve shows how quantity demanded changes as the price changes. It implies that price and quantity demanded are inversely proportional and also inversely related.
<h3>What is demand?</h3>
Demand refers to the amount of the money spent on the purchase of the commodity for the particular period of time. It is willingness as well as ability to purchase the product.
It includes the demand of the consumer goods, imports, and government spending.
The demand curve depicts how the quantity required fluctuates in response to price variations. It means that price and amount requested are both inversely proportional and connected.
Learn more about demand here:
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