Answer:
C. decreased by $40 billion
Explanation:
For computing the lending ability, first we have to determine the money multiplier which is shown below:
We know that
Money multiplier = 1 ÷ reserve ratio
= 1 ÷ 20%
= 5
So, the total cash would be
= $10 billion × $5
= $50 million
Now the lending ability would be
=$50 billion × (1 - 20%)
= $50 billion × 0.80
= $40 billion
Answer:
False
Explanation:
Suppose a firm's CFO thinks that an externality is present in a project, but that it cannot be quantified with any precision ¾ estimates of its effect would really just be guesses. In this case, the externality should be ignored ¾ i.e., not considered at all ¾ because if it were considered it would make the analysis appear more precise than it really is. This is a false statement.
Answer:
Factors to consider:
1. Specialisation role
2. Complexity of sales process
3.Tenure
4.Geographical coverage
5. Sales Representative leadership
6. Support network
7. Internal Bureaucracy
8. Value add of managers
Factors not to consider;
1. Market share
2. Production process
3. Distribution process
4. Personal affiliation, race or religion
Explanation:
When considering a company's span of control, which simply means the number of junior staff a manager should manage, it is important to note factors relating to geographical coverage, a wide coverage can create difficulties in supervision to a manager. Consequently reducing the span of control.
Specialisation also help in ensuring the manager is an expert in the area he or she supervise. Experienced manager with good understanding of the tasks, good knowledge of the workers and good relationships with the workers, will be able to supervise more workers
The complexity of a sale process can affect a manager's supervision performance. if the sale process for example require an online payment to a final user who may not be physically available. Supervising such sales requires adequate training.
Other factors like; Tenure, Sales Representative leadership, Support network, Internal Bureaucracy, Value add of managers are paramount in determining span of control. However, market share, production process, distribution process and personal affiliation, race and religion should not affect the span of control.
Answer:
$24,990
Explanation:
2/15 net 45 means that if the customer pays within the period of 15 days, he will get the discount of 2% of invoice amount, otherwise he has to pay the whole amount of invoice within the period of 45 days.
In the given scenario, since the Pound Co. has paid the invoice within the discount period, so therefore, the Pound Co. has availed the discount of 2% and accordingly the sales amount shall be recorded as follows:
Sales amount=Invoice amount*98%
=$25,500*98%
=$24,990
