Answer:
In this case, the amount of $20,000 represents the owner's equity.
Explanation:
Assets:
Assets are the items that are own by a business. Examples of assets are inventory, machinery, company owned vehicles etc.
Liabilities:
Liabilities are the items a business owes to others. Examples of liabilities are bank dept, taxes, mortgage debt etc.
Equity:
Owner's equity is also known as net assets refer to the owner share of assets when the liabilities are paid off.
The relation between Assets, liabilities and owner equity are represented in a equation as:
Assets = Liabilities + Owner Equity
The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.
<h3>What are
systematic risk principles?</h3>
According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.
Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.
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Answer:
... whereas the fish in the private pond are <u>rival in consumption</u> and excludable.
... the fish in the river are an example of <u>common resource</u>, and the fish in the private pond are an example of <u>private good.</u>
<em>* the first sentence is wrong, the fish in the river are nonexcludable since anyone can fish on the river, or at least try to.</em>
Explanation:
If a good is rival in consumption, it means that if one person consumes it, it will lower the ability of another person to consume the good.
If a good is excludable, ten it can only be consumed by those that are willing and able to pay for it.
When a good is both nonexcludable and rival in consumption, it s a common resource.
A private good is both rival in consumption and excludable
Answer:
$191,500
Explanation:
If the item is not dropped:
Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses
= $923,000 - $405,500 - $337,000 - $244,000
= (63,500) loss
Fixed mfg. expenses remaining:
= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses
= $337,000 - $207,500
= $129,500
Fixed selling and administrative expenses remaining:
= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses
= $244,000 - $118,500
= $125,500
Loss in expenses remaining if item is dropped
:
= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining
= $129,500 + $125,500
= ($255,000)
Overall net operating income would decrease by:
= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped
= $255,000 - $63,500
= $191,500
<span>a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.</span>
