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3 years ago

A business becoming incorporated is an example of risk ____.

Business

1 answer:

Scilla [17]3 years ago

5 0

<span>A business becoming incorporated is an example of risk management.</span>

When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.

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If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded increases from 190 bags to 210

sertanlavr [38]

Answer:Price elasticity of demand = -0.05

Explanation:

Price elasticity of demand using the midpoint method= $\frac{(Q2- Q1)/(Q2+Q1)/2}{(P2- P1)/(P2+P1)/2}$

where Q =Quantity demanded

P = Price

Price elasticity of demand = ( $\frac{(210-190/210+190)/2}{0.90-1.10/ 0.90+1.10)/2}$

= $\frac{20/400)/2 }{ -0.2/2)/2}$

0.025/ -0.05 = -0.05

Price elasticity of demand = -0.05

The Price elasticity of demand tells us how much quantity demanded changes in response to a change in price. Here the Demand for a good is inelastic because the PED coefficient is less than one -0.05

8 0

4 years ago

Read 2 more answers

Gauge Construction Company is making adjusting entries for the year ended March 31 of the current year. In developing informatio

Natasha_Volkova [10]

Answer:

1. Record the adjusting entry for advertisements at March 31 of the current year.

advertisement expense per month = $3,900 / 6 months = $650

$650 x 3 months = $1,950

Dr Advertising expense 1,950

Cr Prepaid advertising 1,950

2. Record the adjusting entry for the use of construction equipment during of the current year.

Dr Depreciation expense 42,400

Cr Accumulated depreciation - equipment 42,400

3. What amount should be reported on the current year's income statement for Advertising Expense?

$1,950

For Depreciation Expense?

$42,400

4. What amount should be reported on the current year's balance sheet for Prepaid Advertising?

$1,950 (= $3,900 - $1,950)

For Construction Equipment (at net book value)?

$358,800 (= $550,000 - $191,200)

Explanation:

Accrual accounting principle states that both revenues and expenses must be recognized during the periods that they effectively occur. They are not necessarily recorded during the periods in which they were collected or paid for.

7 0

3 years ago

Read 2 more answers

Musical Charts just paid an annual dividend of $1.84 per share. This dividend is expected to increase by 2.1 percent annually. C

Ksenya-84 [330]

Answer:

Ke = Rf + β(Rm - Rf)

Ke = 4.3 + 1.12(13.2 - 4.3)

Ke = 4.3 + 1.12(8.9)

Ke = 4.3 + 9.968

Ke = 14.268%

Explanation:

In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.

5 0

4 years ago

Vaughn Manufacturing produced 290000 units in 135000 direct labor hours. Production for the period was estimated at 300000 units

PIT_PIT [208]

Answer:

Actual level of activity which is 290,000 units

Explanation:

Although budgeted was 300,000 units, in order to understand the efficiency of labour in terms of the number of direct labour hours used, it must be flexed in order for it to be comparable.

for example they used only 135,000 units instead of budgeted which is 150,000 but although that is good, it does not tell us all the story, we will also consider the fact that they produced lesser quantities than planned which is 290,000 rather than 300,000.

8 0

3 years ago

Cabinet Division would like to purchase 11,900 units from the Handle Division at a price of $130 per unit. Handle Division has n

crimeas [40]

Missing information:

Selling price to outside customers $155

Variable cost per unit $70

Fixed cost per unit (based on capacity) $40

Capacity (in units) 62,000

Answer:

the company as a whole will be worse off by $178,500

Explanation:

since the Handle Division has no spare capacity to handle the order from Cabinet Division, it must treat this order as any common sale to an outside client.

outside Cabinet differential

customers Division amount

sales revenue $1,844,500 $1,547,000 ($297,500)

variable costs $833,000 $833,000 $0

<u>fixed costs $476,000 $476,000 $0</u>

total ($297,500)

Handle Division will be worse off by $297,500

Cabinet Division will be better off by = ($140 - $130) x 11,900 = $119,000

net effect on the company = worse off by $178,500

6 0

3 years ago