A zero based budget <span>starts with the assumption that current activities in a company will not automatically continue in the next period.
Zero based budget is designed to justify all existing expense in order to find out the true value of a company, which means that this method will not recognize any form of earning and liabilities that haven't been actualized by the company.</span>
Answer:
Letter b is correct.<em> A monopolistically competitive firm faces competition from firms producing close substitutes.</em>
Explanation:
<u>Monopolistic competition</u> is an economic situation that occurs when companies exhibit imperfect competition, that is, companies market similar but not identical products, which characterize them as substitute but not perfect substitute products.
Products may have different variables, such as quality, price and reputation in the market. The greater the degree of product differentiation, the more price control the company will have.
Answer and Explanation:
The computation of the basic and diluted earning per share is given below:
For Basic EPS
Given that
Income for 2016 = 182,905
Income after 7% dividend on cumulatie peference share is
= 182,905 - ( 7% × 1,600,000)
= $ 70,905
And,
Outstanding shares is
= 100,000 - (26,000 × 10 ÷ 12) + ( 6,200 × 3 ÷12 )
= 79,884
So,
Basic earning per share is
= $70,905 ÷ 79,884
= $0.89 per share
For Diluted EPS
Outstanding shares is
= 79,884 + 10,000
= 89,884
So,
Diluted EPS is
= $70,905 ÷ 89,884
= $0.79 per share
Working note
Option to be exercised = 52,000 shares
So,
shares to be bought back with proceeds = (52,000 × 42) ÷ 52 = 42,000 shares
so difference should be of 10,000 shares
Answer: b. mind games and your money
Explanation:
This falls under Mental accounting where our minds play games with our money by dividing them into various accounts and uses based on our emotions.
Sunk costs play a big part in this because we get so attached to the accounts we have put a lot of effort in while neglecting those we have not or do not want to think about. Maria here is proud of her savings account so much so that she does not see the detrimental effect of not paying off the credit card debt which is rising rapidly.
Her savings account is now a sunk cost and she doesn't realize. This principle can help advise her so she understands the games her mind is playing on her and fix it before the damage gets worse.