Answer:
The correct answer is letter "D": The corporate tax rate increases.
Explanation:
In case the government decides to increase the corporate tax rates, companies will have to invest more in their production process so the output will be higher as long as the revenues so that extra profit could cushion the increase in the levies. However, <em>if companies do not have enough reserves to invest, they are likely to request loans</em> that will increment the firm's debt in the long run.
Answer:
The team has completed 'developing alternatives' step in decision making process
Explanation:
Decision making is a very crucial activity carried out by a manager. Various strategies are adopted in the decision making process so as to to come arrive at an appropriate decision.
One of the stages in decision making process is 'developing alternatives' as a prospective course of action. Out of these alternatives, the best one is chosen based on various analysis.
Here, after brainstorming session, the team came up with three ideas to avoid future crashes. These three ideas represent alternatives. Out of these three ideas, the best idea or alternative would be selected.
So, team has completed 'developing alternative' stage in decision making process.
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
<span>An human resources manager may hire more workers and encourage current workers to put in extra hours. The human resources department is responsible for hiring people and firing employees, so the hr manager is capable of hiring more workers if they need to. They are responsible for payroll and the employees's well-being, so if the manager feels that he or she can pay the workers for the extra hours they should.</span>
Answer:
Henson’s retained earnings at the end of the year was $410,000
Explanation:
Ending balance in retained earnings is calculated by using following formula:
Ending balance in retained earnings = Beginning balance in retained earnings + Net income - Cash dividends - Stock dividends
Henson Company began the year with retained earnings of $330,000.
The company paid dividends of $40,000
Henson's Net income = Revenues - Expenses = $500,000 - $380,000 = $120,000
Ending balance in retained earnings = $330,000 + $120,000 - $40,000 = $410,000
