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marta [7]
3 years ago
5

Many corporations allow CEOs to use their​ firm's corporate jet for personal travel. The Internal Revenue Service​ (IRS) require

s that the firm report personal use of its corporate jet as taxable executive​ income, and the Securities and Exchange Commission​ (SEC) requires that publicly traded corporations report the value of this benefit to shareholders. A firm may use any of three valuation techniques. The IRS values a​ CEO's personal flight at or below the price of a​ first-class ticket. The SEC values the flight at the​ "incremental" cost of the​ flight: the additional costs to the corporation of the flight. The third alternative is the market value of chartering an aircraft. Of the three​ methods, the​ first-class ticket is least expensive and the chartered flight is most expensive. What factors​ (such as​ fuel) determine the marginal explicit cost to a corporation of an​ executive's personal​ flight? Explicit costs to a corporation of an​ executive's personal flight include.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

The explicit cost of flight includes cost of fuel, maintenance cost, payment to pilot.

Explanation:

The explicit costs are the direct costs incurred during the process of production or business. Here, the payments made to the pilot will be a variable cost, the cost of fuel, etc will be explicit cost.  

The marginal explicit cost is the increase in the explicit cost with an additional output. The incremental cost of flight correctly determines the marginal explicit cost.  

Opportunity cost is the cost of sacrificing the alternative. Here, the marginal opportunity cost will be the revenue that the firm would have earned by renting the flight to other firms or individuals.

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From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom
notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

4 0
3 years ago
Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite ac
Ratling [72]

Answer:

Explanation:

:

Sharon and Amy are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Sharon takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Amy takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza.  

a. What is each roommate’s opportunity cost of making a pizza?

Each room mates opportunity cost of making pizza is the beer they would have made with the time spent on making pizza which is

Sharon = 2/4 gallon of beer or 0.5 gallon of beer

Amy = 4/6 gallon of beer or 0.67 gallon of beer

Who has the absolute advantage in making pizza?  

Sharon arguably has absolute advantage because she has comparative advantage in producing both items because she spends less time producing both however she spends half the time of Amy in producing Pizza in particular

Who has the comparative advantage in making pizza?  

Sharon because she spends half the time of Amy in producing Pizza  

b. If Sharon and Amy trade foods with each other, who will trade away pizza in exchange for root beer? Amy will trade pizza for root beer because she has a greater disadvantage in Pizza production in relation to root beer when compared to Sharon. She spends double the time of Sharon in making Pizza but less than double the time of Sharon in making root beer

c. The price of pizza can be expressed in terms of gallons of root beer.  

Sharon = 2 hours/4 hours gallon of beer or 0.5 gallon of beer per pizza

Amy = 4 hours/6 hours gallon of beer or 0.67 gallon of beer per pizza

What is the highest price at which pizza can be traded that would make both roommates better off?  

That price should be lower than Amy's cost but higher than Sharon's cost, so they can both make profits. = (0.5+0.67)/2 = 0.585 gallon of root beer

What is the lowest price? Explain.

The lowest price will be the opportunity cost of Sharon which is 0.5 gallon of root beer because if the price is lower it becomes a loss to Sharon

3 0
3 years ago
Read the thesis statement from a historical essay. Determine which type of claim the author is making (claim of fact, definition
mafiozo [28]

Answer:

im not 100% but think this is right

Explanation:

the author is making a claim of fact, because he is claiming that  provides no economic benefits.  im not sure about the second part

5 0
2 years ago
Bill Wessels has reviewed the strategic plan from corporate headquarters and is considering how to develop an annual business pl
LekaFEV [45]

Answer:

Bill is probably a(n)

SBU manager.

Explanation:

Bill Wessels, as a strategic business unit (SBU) manager, is responsible for strategic planning, profitability, and performance of his business unit.  The  SBU is a separate identifiable business unit in an entity with other SBUs. It has a manager, who is largely autonomous in pursuing the business mission of the unit.  It manages and accounts for its resource utilization separately from other units.  Its performance is evaulated based on set criteria.

5 0
2 years ago
If Sue, owner of Camp Bow Wow in Boulder, Colorado, says Heidi Granahl, CEO and founder of Camp Bow Wow, is a leader who establi
sashaice [31]

Answer:

the correct answer to this question is the "Country Club Leadership Style". However, what you should remember is that you might come across different names for this such as "Laizes Faire Leadership", etc...

Explanation:

In this style of leadership, the main assumption is that wen the employee are happy, they will naturally work better for the company. However, lack of regulation and guidance may end up with a not-so-well disciplined work force and usually this style does not work with every type of employees.

Moreover, this style focuses more on creating a safe working environment with minimal conflict.

6 0
3 years ago
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