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3 years ago

What is not true about the profit business model?

2 answers:

8 0

The choices can be found elsewhere and as follows:

a.) The revenue is always more than the cost.
b.) Ideally, the cost will be less than the revenue.
<span>c.) The profit function can be represented by P(x)= R(x)-C(x).
</span>
I think the correct answer is option A. The revenue is always more than the cost is not a true statement. It does not necessarily always have to be in such way. Hope this answers the question.

valkas [14]3 years ago

3 0

I believe the answer is: The revenue is always more than the cost.

In a profit business model, organisations tend to create financial planning for their business expansion. This might cause them to allocate some of their money to be invested in buying necessary resources for their expansion which might cause their revenue to be lower than their overall cost.
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All the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT: Group

miv72 [106K]

Answer:

Policy loans are permitted on an interest-free basis.

Explanation:

The universal life insurance policy refers to a policy in which there is a component of an investment saving also it involves less premium that the person has to pay a low premium amount for continuing the policy. It could benefit the beneficiary after the death of the insured person

So according to the given situation ,for option B there is no flexibility available as no policy loans could be permitted without an interest

5 0

3 years ago

You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 equal annual installments. The first payme

EastWind [94]

The prize is really worth $1,006,512.21.

<h3>What is present value?</h3>

Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000

The present value can be determined using a financial calculator

Cash flow from year 1 to 10 = $150,000

Discount rate = 8%

Present value = $1,006,512.21

Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

3 0

2 years ago

On June 1, Parson Assoc. sold equipment to Arleo and agreed to accept a 3-month, $68,000, 10% interest-bearing note in payment a

nekit [7.7K]

Answer:

The interest revenue on note receivable that will be recognized at maturity is $1700.

Explanation:

The note is a three months note. So, the interest that will be charged on the note for the period the note was outstanding, i.e. three months from June to August. The rate that is given is an annual rate. Thus, the interest on note for three months period will be,

Interest revenue on note = 68000 * 0.1 * 3/12

Interest revenue on note = $1700

7 0

3 years ago

Identify whether each statement in the following table best illustrates the concept of consumers’ surplus, producers’ surplus, o

Blizzard [7]

Answer:

1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus

Explanation:

Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.

Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.

1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.

2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) & actual sale price ($199)

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4 years ago

A mining company declared a liquidating dividend. The journal entry to record the declaration must include a debit to1. Retained

gregori [183]

Answer: Option (2)

Explanation:

Paid in capital is referred to as or known as amount of the capital which is paid in by the investors during the preferred or common stock issuance, including par value of shares in addition to the amount in excess of the par value. The paid in capital tends to represent funds which are raised by organization through selling of equity.

6 0

3 years ago