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3 years ago

An economic system:

Business

1 answer:

seropon [69]3 years ago

5 0

Answer:

B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.

Explanation:

Economic system -

It is the system that is responsible for the resource allocation , production and the distribution of the services and goods , is known as an Economic system .

Economic system includes - the institutions of decision-making , agencies .

It works to deal with the problem related to the economy of a country or society .

Hence , the correct option is ( b ) .

You might be interested in

The ability to use technology and commitment to stay informed on the latest technological developments is calledb

cluponka [151]

Answer:

Management of organizations

3 0

3 years ago

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc

ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

Capital Expenditure = $450,000
Useful life of expenditure = 10 years
Annual return from expenditure = $70,000
Marginal cost of Capital = 8%

Step 1:

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0

3 years ago

Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 u

GuDViN [60]

Answer:

$16.20

Explanation:

Calculation for How much is the cost per equivalent unit for direct materials

Cost per equivalent unit for direct materials=($36,000+$186,000)/[11,000+(3,000*90%)]

Cost per equivalent unit for direct materials=$222,000/(11,000+2,700)

Cost per equivalent unit for direct materials=$222,000/13,700

Cost per equivalent unit for direct materials=$16.20

Therefore the the cost per equivalent unit for direct materials will be $16.20

7 0

2 years ago

A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources

PtichkaEL [24]

Answer:

is not attainable for this nation

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift

1. changes in technology.

2. changes in available resources.

3. changes in the labour force.

8 0

3 years ago

Which of the following statements is the most correct regarding errors and fraud? Group of answer choices Errors are always frau

Sergio039 [100]

Answer:

An error is unintentional, whereas fraud is intentional.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP).

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

Hence, the statement which is the most correct regarding errors and fraud is that, an error is an unintentional that can happen to any financial expert, whereas fraud is intentional.

3 0

2 years ago