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3 years ago

Illustrate, using examples, different government methods of intervention to deal with the

Business

1 answer:

Wewaii [24]3 years ago

4 0

Explanation:

The negative externalities such as pollution which is the most common externalities of the companies is handled by the government using the pollution taxes. By increasing the taxes for companies making pollution the product prices will increase and the demand for those products will decrease.

Landfill is also increasing over the years by manufacturing companies. Government imposes landfill taxes to these companies. So the companies try to recycle the rubbish by themselves than dumping in public property.

Plastic bag tax is another tax that is implemented on the business providing free bags for the customers. This is an additional cost to business so they use recyclable bags or paper bags.

So by imposing regulations, taxes and laws government is able to control negative externalities.

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Assume a large corporation is experiencing the principal-agent problem. What could the corporation do to minimize this problem

EastWind [94]

Answer:

1) Structure rewards/pay to be based on performance

2)Make them stakeholders/shareholders of the principal

Explanation:

The major principal/agent problem is the agent not acting in the best interest of the principal. Taking the steps above could minimize the problem

7 0

3 years ago

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1

zepelin [54]

Answer:

These can be prepared as shown below:

Explanation:

1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.

To do this, the income statement is first prepared by ignoring tax as follows:

Fightin' Blue Hens Corporation

Income Statement

for the year ended December 31, 2018.

Details $

Service Revenue 300,000

Salaries Expense (200,000)

Rent Expense (10,000)

Depreciation Expense (20,000)

Interest Expense (3,000)

Earnings for the year  67,000 

Therefore, we have:

Fightin' Blue Hens Corporation

Statement of Stockholder Equity

for the year ends December 31, 2018

Details $

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

2. Prepare a classified balance sheet as of December 31, 2018.

A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:

Fightin' Blue Hens Corporation

Classified Balance Sheet

for the year ends December 31, 2018

Details $ $

Fixed Assets

Equipment 200,000

Accumulated Depreciation (115,000)

Net Fixed Assets 85,000

Current Assets

Cash 10,000

Accounts Receivable 130,000

Prepaid Rent 4,000

Supplies 20,000

Total current assets 164,000

Current Liabilities

Accounts Payable (10,000)

Salaries Payable (9,000)

Interest Payable (3,000)

Working capital 142,000

Long-term Liabilities

Notes Payable (due in two years) (20,000)

Net Total Assets  207,000

Financed by:

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.

6 0

3 years ago

Presented below is information for Ivanhoe Company for the month of January 2017. Cost of goods sold $221,000 Rent expense $33,5

anyanavicka [17]

Answer:

Sales revenue 392,500

Sales returns and allowances (20,000)

Sales discounts (8,600)

Net Sales: 363,900

COGS (221,000)

Gross Profit 142,900

Freight-out (9,700)

Salaries and wages expense (63,400)

Rent expense (33,500)

Insurance expense (14,600)

Earnings before taxes 21,700

Income tax expense (4,900)

Operating income 16,800

OCI 2,000

Net Income 18,800

Explanation:

First we solve for net sales.

Then we subtract COGS for Gross profit.

THen we subtract hte expenses and get hte earnings before taxes.

Next the inome tax expense and operationg income

then we put htis along with OCI for thenet income of the period.

3 0

3 years ago

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:

enot [183]

Answer:

a. clinic's projected P&L statement.

Revenues 400,000

Less Expenses:

Wages and benefits (220,000 )

Rent (5,000 )

Depreciation (30,000 )

Utilities (2,500 )

Medical supplies (50,000)

Administrative supplies (10,000)

Net Income or (loss) before tax 182,500

Income tax at 30% (54,750)

Income or (loss) 127,750

b. 9,184 visits

c. 12,125 visits

Explanation:

Fixed Costs = 220,000 + 5,000 + 30,000 + 2,500 + 54,750

= $312,250

Contribution = Sales - Variable Costs

= $400,000 - ($50,000+$10,000)

= $340,000

Contribution per unit = $340,000 / 10,000 visits

= $34

Break even point = Fixed Costs / Contribution per unit

= $312,250 / $34

= 9,184 visits

Units for a Profit target = Fixed Costs + Target Profit / Contribution per unit

= ($312,250 + $100,000) / $34

= 12,125 visits

7 0

3 years ago

In the majority of Fortune 500 companies, the head of the human resource department, usually a vice president, answers to the ch

Novosadov [1.4K]

Answer:

increasingly involved in their organization's strategic and policy-making activities.

Explanation:

Human resources managers also consult or sit with top executives regarding the organization’s strategic planning. They identify ways to increase the value of the organization’s employees and make sure that they are as efficient as possible. They are able to assess workers productivity and make changes to the organization’s structure to help it meet financial goals. They are able to make policies that affect the workers in an organization.

6 0

3 years ago