When managers are evaluated on residual income, rather than on return on investment (ROI), they will be more likely to pursue projects that will benefit the entire company.
Explanation:
The most rising profitable formula is return on investments or ROI. There are several methods of calculating ROI, but dividing net income by total assets is the most common process.
If you have $100,000 net profits and $300,000 in cash, the ROI is $300,000. Thirty-three or three percent.
Due to its flexibility and simplicity, ROI is a common metric. In general, ROI can be used as a basic measure of the viability of an project. It may be the ROI for a capital sale, a company's ROI for an extension of a factory or ROI for an immobilisation operation.
Answer:
Dr Organization costs ($12,000 + $3,000) 15,000
Dr Patent ($20,000 + $2,000) 22,000
Dr Equipment 30,000
Dr Preopening expenses 40,000
Cr Cash 107,000
Explanation:
Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.
Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.
According the utilitarian approach actions and plans should be taken<span> in a way that will produce the greatest benefit to society and produce the least harm at lowest cost and</span> judged by their consequences. The utilitarian approach proposes that actions and plans should be judged by their consequences. research reveals that stakeholders who have the ability to affect the company have the most power; whereas stakeholders that have legitimacy have a legal or moral claim on company resources.
Answer: Corporate charter
Explanation:
The corporate charter is also referred to as the articles of incorporation. It is a document that contains the major components that make up a company, like the objectives of the company, the structure of the company, the number of shares the company has for sale and the planned operations of the company.
When a corporate charter is approved by the state, then the company will become a legal corporation. The corporate charter also contains the names of the people that are involved in its formation.
