Answer:
The seller transfers title to the buyer once the merchandise is shipped
Explanation:
Free onboard shipping point refers to a practice where the buyer of a product takes responsibility of the good once it is shipped by the seller.
So when the supplier ships a product he can record a sale because the ownership of the good has been shifted to the seller abd he will be paid for services rendered.
The buyer will record an increase in his inventory at this point and make provision for risk of shipping along with shipping cost.
Answer:
b. An increase of $15 million
Explanation:
The computation of the cash impact of the change in working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
So, the change in working capital is
= Increase in current assets - increased in current liabilities
= $40 million - $25 million
= $15 million
Hence, the b option is correct
Answer:
a. Leslie, who is independent and self-confident. She doesn’t need people to tell her what to do.
b. Malcolm, who loves to play. His last boss says that Malcolm was the "chief kid" in his last office.
c. Frankie, who has been in the toy business for 10 years and who knows what he’s doing, but who always likes testing a new idea.
Explanation:
In this scenario the CEO of a start-up toy manufacturer wants to create at least 10 wildly different toys in the next three years.
He will primarily need people that are creative and are inclined to work with new ideas.
The wrong choice will be someone who follows the rules and is stable. Such a staff will not contribute new ideas that will move the company to make profits.
Leslie is confident and does not need to be told what to do, so she will take initiative to do new things.
Malcolm loves to play and this will boost creative ideas.
Frankie likes testing new ideas and will be comfortable working creatively.
Answer:
a. the portion of its marginal cost curve that lies above the AVC
Explanation:
In short run, a perfectly competitive produces as long as its price is above its AVC, so revenues can cover total variable cost. If price is below AVC, the firm has to shut down. Since such a firm maximizes profit by equating Price with MC, this condition means that firm's supply curve is its MC curve lying above the (minimum point of) AVC curve.
