Answer:
Competitive advantage
Explanation:
An entity can be distinguished from its competitors by having Competitive advantage. A company is favorable and superior in the market have the competitive edge over all other competitors.
A different different and better product from the competitors that customers find better than competitor's product e.g Brand names, product reliability, and services make the company competitive in the market
Answer:
Strong.
Explanation:
The employees of KLM Company have high attention to work towards mission and vision. The culture at KLM is strong because all employees clearly know the vision and mission of the company and they abide by all the values of the organization in work practices. Mission statement defines company's objectives and its goals. Vision defines where the company wants to see itself in future or its ultimate goal accomplishment.
Answer:
B-debit to Sales Discounts for $100
Explanation:
The journal entry is shown below to record the sale:
a. Accounts receivable A/c Dr $5,000
To Sales revenue $5,000
(Being merchandise is sold on a credit basis)
If the payment is made within 10 days, the journal entry would be
Cash A/c Dr $4,900
Sales discount A/c $100 ($5,000 x 2%)
To Accounts receivable A/c $5,000
(Being cash is received)
Complete Question:
Akram owns a small farm.He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbors farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares.
Requirement. Identity two types of short-term finance Akram could use when the farm income is low
Answer with its Explanation:
The two types of short term finances are as under:
- Merchant Cash Advance: It is also known as supplier payables but in fact it is actually an cash advance by supplier to promote its sales by allowing credit for a short term. It doesn't what level of profits the company is earning, the supplier always allow small period for payment of its goods.
- Invoice Financing: It helps the company borrow money from money lenders (mostly banks) against the debtors accounts. This is usually a short term loan with option to expand both time and money if the company has proven to growth and better credit control. The invoice finacing doesn't effect the borrowings in short term if the business profits are low because for qualifying for such loan the company must have better cash postion. Though higher profits might help in securing the short term loan by using invoice financing but cash generation is the key requirement here.