Answer:
Explanation:
Balance sheet presentation :
Long term liabilties
Bonds payable 500000
Add: Premium on bonds payable 10000
Carrying value of bonds 510000
Answer:
The own price elasticity is 0.28.
The demand for good a is inelastic.
Explanation:
The price elasticity of demand for a product is the change in the quantity demanded of a product due to a change in its price.
When the price of good A increases by 7% the quantity demanded of that product decreases by 2%.
The own price elasticity of demand
= 
= 
= 0.28
The elasticity of demand is less than 1, this implies that demand is inelastic.
A greater change in price is leading to a smaller change in quantity demanded.
Answer:
Related diversification strategy
Explanation:
The related diversification is when the company enters the samilar industry like Sony enter Camera market which was similar to its television industry, it is known as related diversification. And the strategy that the company follows to generate 70% of revenue from a similar investment like its core operation, then the company is following related diversified strategy.