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Dmitrij [34]
3 years ago
8

Entrepreneurs should base their market assessments, production schedules, inventory policies, and personnel decisions on

Business
1 answer:
Law Incorporation [45]3 years ago
4 0
It should be base on sales forecast because this will ensure or provide them sales in the future that they could estimate. This will help them to make business decisions for their company that will be of help for them to conclude the effect of these decisions. They are most likely using this forecast with the help of the assessment, policies or schedules in their business.
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Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the informa
Elena-2011 [213]

Answer:

The project to accept is:

e. E

Explanation:

a) Data and Calculations:

Cost of capital = 10%

Mutually Exclusive Projects:

                            A       B        C        E

Payback (years)   1        5        2        5

IRR                    18%   20%    20%    12%

NPV (Millions) $40    $75    $35   $100

b) Project E should be preferred over all the other projects.  It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital.  It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.

8 0
3 years ago
Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happ
4vir4ik [10]

Answer:

  • Equilibrium wage increase
  • Level of employment increase

Explanation:

A shift rightward in the labor market of a single employer would imply that the employer wants more labor. They will therefore increase the wages that they are paying their labor to entice more labor and the level of employment in the industry will increase as the employer hires more people.

Graphically speaking, when the labor demand curve shifts right, it will intersect with the labor supply curve at a higher equilibrium wage. The quantity of labor will also increase as it goes to a new equilibrium point.

7 0
3 years ago
Fairfax Pizza borrowed 745,000 dollars to build a new restaurant for 745,000 dollars. The decision to spend 745,000 dollars on t
EastWind [94]

Answer:

Financing decision

Explanation:

Financing decision is concerned with borrowing and allocating funds for investments.

As such, the decision to borrowed 745,000 dollars and use the fund to build a new restaurant for 745,000 dollars is a financing decision.

Capital Budgeting decision-making process involves plans around any long term capital expenditures whose returns (cash inflows and outflow) are expected to be earned in more than a year.

8 0
3 years ago
1. Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.
Oksana_A [137]

Answer:

1. False

2. False

3. False

4. True

5. True

Explanation:

1.

Sarbanes-Oxley Act was a federal law that was established by congress to sweep auditing and financial statements for public companies. The main aim for this was to improve the investor confidence by improving reliability in accounting statements. Errors in the financial statements for the public companies were to be minimized following this law especially in the wake of numerous cases of corporate crime. This law was never passed to ensure that investors only invest in companies that will be profitable, since the choice of which company to invest in is exclusively left to the investor. So the above statement is false.

2.

Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.

3.

The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting.  Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.

4.

The historical cost principle suggests that the companies record assets cost at their original cost and continue to report them at their original cost over the time the asset is held. The historical cost principle is a generally accepted accounting principle that has been in use for a long time. The definition about the historical cost principle in the question above is therefor true.

5.

The monetary unit assumption dictates that business related activities be converted to monetary units. There are some business transactions that are however quite difficult to convert into monetary units, therefor the accountant in using this principle is only obliged to record only the transactions that can be measured in money terms. The statement about monetary units in the question above is thus true.

8 0
3 years ago
Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and
alisha [4.7K]

Answer:

The correct word for the blank space is: public.

Explanation:

A public corporation has sold stock through an<em> Initial Public Offering </em>(IPO) to the public and that stock is currently traded on a <em>public stock exchange</em> or the <em>Over-The-Counter</em> (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.

5 0
3 years ago
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