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Veseljchak [2.6K]
3 years ago
13

When firms grow larger, they sometimes add many additional layers of managers between the top executives and the entry-level emp

loyees. Because these managers do not actually produce any output themselves, we expect more layers of management to lead to _____.(A) a diminishing marginal return.(B) increasing marginal returns.(C) diseconomies of scale(D) economies of sealed
Business
1 answer:
DiKsa [7]3 years ago
6 0

Answer:

The correct answer is letter "C": diseconomies of scale.

Explanation:

Diseconomies of scale is a point where a business no longer experiences a decrease in cost per unit of output. Rather, after this point cost per unit tend to increase. Typically, diseconomies of scale arise when the increase in production represents an increase in the average unit per cost.

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Bohemian Manufacturing Company has the following end-of-year balance sheet:
soldi70 [24.7K]

Answer:

<h2>Bohemian Manufacturing Company</h2>

1. Increase in Assets:

d. $540,00

2. Spontaneous Liabilities:

d. $72,000

3. Given the preceding information, Bohemian Manufacturing Company is expected to generate__$318,458 income from operations that will be added to retained earnings from the total net income of $513,000 ($450,000 x 1.18).

4. According to the AFN equation and projections for Bohemian Manufacturing Company, the firm's AFN is $__149,542__.

Explanation:

Solution

1. Additional Funds Needed = Increase in Assets − Increase in Liabilities – Increase in Retained Earnings, according to xplaind.com.

a) Increase in Assets

= Assets × sales growth rate

= $3,000,000 × 18%

= $540,000

Spontaneous Increase in Liabilities

= Liabilities × sales growth rate

= $400,000 × 18%

= $72,000

Increase in Retained Earnings

= Current sales × profit margin × retention rate

= Current sales × (1 + sales growth rate) × profit margin × retention rate

= $13,000,000 × (1 + 18%) × 3.46% × 60% = $318,458

Additional Funds Needed

= $540,000 - $72,000 - $318,458

= $149,542

2. Data:

Bohemian Manufacturing Company

Balance Sheet

For the Year Ended on December 31

Assets Liabilities

Current Assets:                                   Current Liabilities:

Cash and equivalents $150,000      Accounts payable            $250,000

Accounts receivable     400,000      Accrued liabilities               150,000

Inventories                    350,000      Notes payable                    100,000

Total Current Assets $900,000       Total Current Liabilities $500,000

Net Fixed Assets:                               Long-Term Bonds         1,000,000

Net plant & equipment $2,100,000 Total Debt                    $1,500,000

                                                           Common Equity

                                                           Common stock               800,000

                                                           Retained earnings          700,000

                                                         Total Common Equity $1,500,000

Total Assets         $3,000,000   Total Liabilities & Equity $3,000,000

3. Current profit margin = Net Income/Sales x 100 = $450,000/$13,000,000 x 100 = 3.46%

4. Retention Rate = (1 - dividend payout ratio) = (1 - 40%) = 60%

5. AFN = Additional Funds Needed.  AFN is the financial resources obtained from external sources to finance the increase in assets which supports the increased sales level.  Note that "Bohemian Manufacturing Company's assets are fully utilized," so we do not envisage the acquisition of more fixed assets.  In view of this, the liabilities that are expected to increase are only the Accounts Payable and Accrued Liabilities, two vital sources of supply chain funding.

3 0
3 years ago
When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the
Pie

Answer:

The correct answer is (A)

Explanation:

Nike and Adidas are considered as substitute goods that means they have positive cross elasticity of demand. When the price of Nike soccer balls fell, Rolando purchased more Nike balls compared to Adidas balls because of the substitution effect. The substitution effect led to this decision. A substitute effect is a change in the purchase decision, due to an increase in the price of one substitute good.

8 0
3 years ago
An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she
Mazyrski [523]
D. Accounting loss but not an economic loss
6 0
2 years ago
A corporation is authorized to sell 1,000,000 shares of common stock. Today there are 500,000 shares outstanding, and the board
Juliette [100K]

Answer:

35,000 stocks

Explanation:

Dividends can be either distributed in cash or distributed as new stock. In this case the company decided to issue stock instead of cash payments. Since the company has 500,000 outstanding and the board declared a 7% dividend, then 35,000 stocks should be issued (= 500,000 x 7%).

Whether shareholders receive money or stocks, they still have to include the dividends as part of their gross income.

4 0
3 years ago
Product Managers are expected to collaborate in planning the amount of upcoming Enabler work by establishing what? a. Accurate u
vaieri [72.5K]

Option D

Product Managers are expected to collaborate in planning the amount of upcoming Enabler work by establishing Completed epic acceptance criteria

<u>Explanation</u>:

Acceptance criteria are a formalized schedule of elements that assure that all user narratives are developed and complete synopses are carried into account. Acceptance Criteria are a collection of observations, respectively with a precise pass/fail outcome, that defines all specifications and are suitable at the Epic, Feature, and Story Level.

An epic is an excellent method to endure the trace of the huge idea in agile circumstances.  It enhances crews split their job while proceeding to operate towards a larger intention.

5 0
3 years ago
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