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3 years ago

An example of opportunity cost:

Business

1 answer:

maria [59]3 years ago

8 0

Answer: b. Is the Chinese food that you gave up when you chose to eat Italian food.

Explanation: Opportunity cost refers to the cost of the next best alternative foregone or sacrificed. When an individual chooses to take a certain action, then his opportunity cost of doing that will be the alternatives that he has foregone.

IT can be expresses as,

$Opportunity cost = \frac{Units sacrificed}{Units Gained}$

When the individual chooses Chinese food when he could have choose to eat Italian food, his opportunity cost will be the Chinese food that you gave up.

For other options there is no information on what was given up.

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Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 2,000 shares of $

Evgen [1.6K]

Answer:

A. Dr Cash $24,000

Cr common stock $20,000

Cr paid in capital in excess of par-value common stock $4,000

B. Dr organization Expense $52,000

Cr common stock $5,000

Cr paid in capital in excess of par-value common stock $47,000

C. Dr organization expense $52,000

Cr Common Stock $52,000

D. Dr Cash $89,500

Cr Preferred stock $37,500

Cr paid in capital in excess of par-value common stock $52,000

Explanation:

Preparation of the journal entries to record each of the following four separate issuances of stock

A. Dr Cash $24,000

Cr common stock $20,000

(2000*10)

Cr paid in capital in excess of par-value common stock $4,000

($24,000-$20,000)

B. Dr organization Expense $52,000

Cr common stock $5,000

(1,000*$5)

Cr paid in capital in excess of par-value common stock $47,000

($52,000-$5,000)

C. Dr organization expense $52,000

Cr Common Stock $52,000

D. Dr Cash $89,500

Cr Preferred stock $37,500

(500*$75)

Cr paid in capital in excess of par-value common stock $52,000

($89,500-$37,500)

8 0

3 years ago

Delaney Company is considering replacing equipment that originally cost $600,000 and that has $420,000 accumulated depreciation

Annette [7]

Answer:

$180,000

Explanation:

A sunk cost refers to the cost that is incurred by the businesses but this cost cannot be recovered by the businesses.

Here, given that

Cost of equipment = $600,000

Accumulated depreciation = $420,000

Cost of new machine = $790,000

In this situation, the sunk cost is determined by subtracting the cost that are related to previous year from the cost of the equipment.

Sunk cost = Cost of equipment - Accumulated depreciation

= $600,000 - $420,000

= $180,000

3 0

3 years ago

A legal arrangement where two or more people share ownership of a business is called a ______. A. Corporation b. Sole proprietor

liubo4ka [24]

The correct statement is that a legal arrangement where two or more people share ownership of a business is called a partnership. So, the correct option is C.

A partnership may be started by two individuals with an intention to share the profits and losses of such business in a predetermined proportion.

<h3>Partnership Firm </h3>

A partnership firm is a form of business organization where at least two individuals put their resources and carry a legal business.

The individuals of a partnership firm are collectively known as partners, where they tend to share the profits and losses proportionately to their capital invested.

There exists vicarious liability among the partners, which means that all the partners are liable for the acts of one or more partner as per the legal contract.

A partnership firm may be terminated by lapse of time, dispute between the partners, dissolution, insolvency, but has a perpetual succession.

Hence, the correct option is C that legal arrangement where two or more people share ownership of a business is called a <u>partnership. </u>

<u></u>

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6 0

3 years ago

Which investment does not guarantee you will get your money back.

ddd [48]

Stock is the answer so b

5 0

3 years ago

Read 2 more answers

Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows t

irakobra [83]

The need that the electronic pencil fill is the need to erase errors associated with what has been written down digitally.

<h3>What is the potential market for the product?</h3>

The potential market for electronic pencil is the global digital pen market and the global market as a whole.

<h3>What type of consumer good is electronic pencil product?</h3>

The type of consumer good of electronic pencil product is Specialty products.

<h3> How will you distribute the product?</h3>

One can distribute the product via online platforms such as social media, online stores and marketplace, etc.

<h3> What are the other questions that need to be answered before a decision is made?</h3>

The lifespan of the product.
Does it have effect to the human skin
Is it feasible.

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7 0

2 years ago