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topjm [15]
3 years ago
8

Why should firms with promising investment opportunities strive to maintain a conservative capital structure, i.e., limited leve

rage? Why do you think many promising small businesses apparently do not follow this recommendation and are heavily indebted?
Business
1 answer:
Crazy boy [7]3 years ago
7 0

Answer:

The answer is to assure funding for future assets.

The answer is because of lack of sufficient operating cash flow.

Explanation:

Companies with promising investments opportunity typically have valuable intangible assets whose value would decline sharply if the company would go into financial difficulty, its important for such company to maintain a financial flexibility that comes with a conservative capital structure to assure funding for future assets.

   Poor cash flow is when the income cash flow is insufficient to meet the outgoing cash flow needs of a business and this can also lead to inability to raise additional equity force.

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g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it emplo
UNO [17]

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100                          

7 0
2 years ago
Annual Dividends<br><br> Question 4 Attached
WARRIOR [948]

Answer:

no it's was not because we don't add

6 0
2 years ago
Hyde's Headphones sells deluxe headphones for $90 each. Unit variable expenses total $70. The breakeven sales in units is 1000 a
crimeas [40]

Answer:

0.7835 or 78.35%

Explanation:

Budgeted Sales = $90 per unit x 4620 units = $415,800

Break-Even Sales (Revenue) = 1000 units x $90 per unit = $90,000 units

Margin of safety = (Budgeted Sales - Break-Even Sales) ÷ Budgeted Sales

Margin of Safety = ($415,800 - $90,000) ÷ $415,800 = 0.7835 or 78.35%

3 0
3 years ago
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
gogolik [260]

Answer:

2080 dollars

Explanation:

Given that Cardinal Industries purchased a generator that cost $11,000

cost of generator = 11000

Estimated life       = 5 years

Residual value     =1000

Hours                    =5000

Depreciation per unit hour = (Cost - residual value)/total lifetime hours

=\frac{11000-1000}{5000} \\=2

For first year the generator was used for 1,040 hours.

Hence depreciation to be charged in I year

= 1040(2)\\=2080

answer is 2080 dollars.

3 0
3 years ago
Xeon Inc., a maker of chocolate products, assigns its packaging and labeling to First Choice U.S.A., a firm that specializes in
Ray Of Light [21]

Answer:

c. outsourcing

Explanation:

Outsourcing -

It refers to the process of hiring another company , which is responsible for some external project or task , is referred to as outsourcing .

It can be a short term process of hiring , it may also require transferring the employees to another firm internally .

Hence , from the given scenario of the question ,

Hiring the packaging firm by another company , showcases the method of outsourcing .

5 0
3 years ago
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