Answer: direct and indirect
Explanation:
Right on Plato
Answer:
Explanation:
Effective interest rate = [(Interest value of loan / Amount of loan after payment of interest) * (Number of months annually / Number of months notes hold)] * 100
= [($5,830 / $100,170) * (12 / 6)] * 100
= 0.1164 * 100
= 11.64%
1.
Computation the interest value of loan is:
Interest value of loan = Amount of loan * 8 / 12 * Percentage of discount
= ($106,000 * 6/ 12 )* 0.11
= $5,830
2.
Amount of loan after payment of interest = Amount of loan - Interest value of loan
= $106,000 - $5,830
= $100,170
Answer:
- Threat of Substitutes
- Threat of New entrants/ Competitors
Explanation:
This question relates to Porter's five forces.
A patent on a good protects that good from being able to be copied or produced by other companies.
Should a company lose this protection, companies will be allowed to make substitutes to the products without running afoul of the law. The company will therefore face an increased threat from Substitutes.
Other companies will also be able to produce the goods or offer the services now which would mean that new entrants/ competitors can come into the market for that good or service.
Answer:
The correct answer is the last option: Escalation of commitment.
Explanation:
To begin with, the concept known as "Escalation of commitment" in the field of business management and behavioral science refers to the behavioral pattern that an individual has when it faces against a bad decision or situation and after that the person continues to having the same behavior so therefore it stays believing the same even though the increasingly negative outcome keeps on coming. That is why that in this case presented, Jake believes that at the long term the new product will have success even thought that now only bad numbers have been shown to the company.
Answer:
The company should recognize a gain on disposal of $29500
Explanation:
The straight line depreciation method charges a constant depreciation expense per year through out the estimated useful life of the asset.
The straight line depreciation expense per year is,
(Cost - salvage value) / estimated useful life
Depreciation expense = (910000 - 0) / 8 = $113750
The number of years till 31 December 2013 = 6 years
The accumulated depreciation till December 31, 2013 = 113750 * 6 = $682500
The carrying value of the asset at 31 December 2013 = 910000 - 682500 = $227500
The gain/loss on sale = 257000 - 227500 = $29500 gain
