Answer:
True
Explanation:
The three main sources of assets for a business are:
- investments by owners (total paid in capital), refers to the money that the owners are willing to invest in the company and it should be used to finance operating activities.
-
borrowing from creditors, refers to both long term and short liabilities that allow the company to increase their assets, e.g. merchandise or equipment purchased on credit, or a loan.
- earnings activities, refers to the company's retained earnings from previous years that is reinvested in new or existing projects.
Answer: An escalation of commitment
Explanation:
Carrying out projects can be capital, time and energy intensive. Most times they could result to a positive progress or result and other times they may not but the area of changing minds on a project that has had a great ton of investment is usually hard except there is nothing that would be gotten from it. When so much time and resources has been put into a project and there is no plan for a change such commitment is called an escalation of commitment
Answer:
<u>The correct answer is:</u> e. a public relations strategy and resulting publicity.
Explanation:
In the scenario exemplified above, it can be considered that in terms of the promotional mix, the Iraqi Peachtree race was an example of a public relations strategy, as the function of these professionals is to promote an event, brand or company with the objective of attracting positive publicity. , which was what happened in the case of the race.
Public relations activities helped to generate publicity for the event through television media reports.
Answer:
The firm paid taxes of $0.5 million
Explanation:
Profit margin is the percentage of net income to its sales. It is calculated as follow:
Profit Margin = ( Net profit / Sales ) x 100
20% = (Net profit / 5 million) x 100
(20/100) x 5 million = Net profit
Net profit = 1 million
EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.
net income is calculates from EBIT as follow
Net Income = EBIT - Interest expense - Tax
1 = 1.5 - $0 - Tax (ignoring the effect of financing)
Tax = $1.5 - $1
Tax = $0.5 million
