Answer:
Prosecutors of this case can use the net worth method to determine the extent these executives have been receiving illegal incomes by computing their wealth at the beginning and at the end of the period under investigation.
There will be an increase in the executives wealth, and since this increase cannot be traced to any legal income source, it will become taxable income, with the calculated penalties and fines.
Explanation:
The net worth method specifies that any increase in wealth, which is not traced to non-taxable sources, should be determined as a taxable income for the period under review. Ordinarily, the net worth is the difference between assets and liabilities. Since the executives use the money personally at their convenience, this will increase their personal wealth.
Answer:
d) Purchasing $18,000 (000) worth of plant and equipment
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
Explanation:
<em>Missing information:</em>
a) A $5 dividend
b) Liquidate the entire inventory
c) Retiring the oldest bond
d) Purchasing $18,000 (000) worth of plant and equipment
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A) dividends would not be the cause as they are determinated by the company they can chose not to declare it.
B) lquidate the inventory means selling and not replenish. This generates cash it doesn't use cash
C) re-rolling the debt (by issuing new bonds) is a course of action planned and that in hte end will not affect the cash of the company as will be paying the bonds and receiving from the new bonds thus the changes in cash would be controlled.
D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.
Answer:
b. The competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage.
Explanation:
The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.
The Porter's five forces of competition framework are:
1. The bargaining power of suppliers.
2. The bargaining power of customers.
3. Threat posed by substitute products.
4. Threats posed by new entrants.
5. Threats posed by existing rivals in the industry.
The most powerful of the five competitive forces is usually the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. When the amount of competitors (sellers), as well as the quantity of goods and services they provide are large, the lesser their competitive strengths or advantage in the market because the customers have a large pool of finished goods and services to choose from and vice-versa.
Answer: True
Explanation:
Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.
This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.