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3 years ago

Explain how incentives and the limited role of government function in a free enterprise system.

Business

1 answer:

Degger [83]3 years ago

3 0

Answer:

The government has two major roles;

a. The role of a rule maker.

b. The role of an umpire.

Explanation:

A free enterprise system is an economic model where the prices and quantities produced are determined by the market rather than the government. The government usually has limited or no control on the market forces. In other words, a free enterprise system is an ideology where the market is majorly controlled by private businesses. The foundation for free markets are; voluntary trade, private ownership of property and competition in bidding. However, a government controlled economy usually has the following properties, namely; all property is publicly owned, trade is coerced and there is limited competitive bidding. Even though the government has a limited role in a free enterprise system it still has a role in allowing individuals to operate freely in the market. The roles of the government are; rule maker and umpire.

In a free enterprise system, individuals are allowed to do their transactions without any restrictions. Even though individuals are free to operate, there needs to be rules to make sure that the transactions are in deed free. This is where the government comes in to enforce the laws that govern the smooth running of a free enterprise system. The government's role as an umpire means that the government has the authority to solve disputes resulting from different interruptions of the law.

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Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a

Irina18 [472]

Answer:

The market value of this firm is $980,744

Explanation:

The computation of the market value is shown below:

= Current value of building + current value of building + market value of inventory + accounts receivable + cash balance - owing balance

= $1,480,000 + $507,000 + $225,000 ($450,000 × 50%) + $237,844 ($245,200 × 98%) + $10,900 - $1,480,000

= $980,744

We take the market value instead cost value, as question has asked for the market value of the firm

8 0

3 years ago

Ski resorts are interested in the mean age that children take their first ski and snowboard lessons. They need this information

Setler79 [48]

Answer:

The answer is B: The population is all of the children taking skiing or snowboarding lessons

Explanation:

The population of a group is usually a group having something in common. For a research study, the population is always a large collection of people with a feature. From the population, the sample is selected. For example, all patients with mental disorder in a hospital can be the population, while patient with schizophrenia would be the sample. Thus in the example above, the population is all of the children taking skiing or snowboarding lessons.

3 0

3 years ago

Accounts Receivable has a $2,300 balance, and the Allowance for Doubtful Accounts has a $200 credit balance. An $80 account rece

stealth61 [152]

Answer:

The net realizable value after the write-off equals is;

B). $2,100

Explanation:

Since and amount of $80 has been written off, this means that this amounts needs to be debited from the accounts receivable while at the same time debiting the accounts credit balance. To determine the net receivables, we can form the expression below;

N=(R-W)-(C-W)

where;

N=net realizable value

R=accounts receivable

W=written off accounts receivables

C=credit balance

In our case;

N=unknown

R=$2,300

W=$80

C=$200

replacing;

N=(2,300-80)-(200-80)

N=(2,220-120)=2,100

N=$2,100

The net realizable value after the write-off equals=$2,100

6 0

3 years ago

The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over

Lostsunrise [7]

Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).

Explanation:

Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.

The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.

7 0

3 years ago

In 2021, management discovered that Dietlikon Production had debited expense for the full cost of an asset purchased on January

RoseWind [281]

Answer:

The correct answer is Option B.

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($36,000,000 - $0) / 5 years = $7,200,000 yearly depreciation expense.

Accumulated depreciation expense by straight-line in 2021 will be (3 years): $7,200,000 x 3 years = $21,600,000.

The correcting journal entries will be:

Debit Fixed asset cost $36,000,000

Credit Operating expense $36,000,000

<em>(Reversal of wrong posting)</em>

Debit Depreciation expense $21,600,000

Credit Accumulated depreciation $21,600,000

<em>(Being depreciation charge for 3 years)</em>

8 0

3 years ago