Select the correct text in the passage given below. Which sentence identifies a factor that affects demand for a car manufacture
r? A car manufacturer intends to lead in terms of market share. The company ensures that it caters to multiple consumer segments, and thus has a broad product portfolio. The production technology that the manufacturer uses is efficient and the company intends to raise the production by 25 percent. The production team concentrates on constant innovation. However, raw materials like metals have gone up in price, which is a pressing concern for the company. Worldwide constraints on crude oil have caused an increase in the price of gas, which car owners must also purchase. Thus, the marketing team is working on new activities to increase sale opportunities. They constantly monitor market trends through surveys and feedbacks.
<u>Answer:</u>Worldwide constraints on crude oil have caused an increase in the price of gas, which car owners must also purchase. This statement affects the demand.
<u>Explanation:</u>
In the given passage only the sentence which is about the price of gas affects the demand of the product. When the price of gas increases the demand for the product decreases. Though gas is not a direct product of the company one has to purchase gas when he owns a car.
The other factors are related to company decision making and policies it affects the manufacturing of the car for company. Those factors do not affect the demand for car.
Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000
Explanation:
The liability refers to the obligations of the firm which are certain is going to make payment as compensation.
The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.
The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.
The answer is 'it increases the number of shares outstanding'
Explanation:
Stock split increases the number of shares outstanding. It causes dilution of earnings per share.
For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.
This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)
