Answer:
Option D is correct.
Explanation:
Both company will have same Equity multiplier as total assets and equity are same of both companies. So Option A and B is incorrect.
Option C is also incorrect because there is no difference between the sales and total assets of both companies.
Option D is correct because the return on equity of the company LD is higher as the Net profit which is profit after interest and tax is higher than the profit after interest and tax of the company HD.
ROE = PAIT / Equity
Option E is wrong because when we say ROA is same this means that the operating income is same.
ROA = Operating profit / Total assets
Remember that the operating profit is earnings before interest and tax.
Answer:
Depending on the reason why Sidney requested the appraisal, she has two options:
- If Sidney got the appraisal because she thought her property taxes were too high, she can file a complaint with her local board of assessment review (BAR) in order to get her taxes reduced.
- Or if Sidney wants to sell her house she could appeal the appraisal amount and request a reconsideration of value.
Answer:
The answer is letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.
Explanation:
Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.
It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.
Answer:
The correct answer is letter "A": Lose their personal assets as the result of their company's financial problems.
Explanation:
A general partnership is the type of business that is set in a form in which all the individuals involved in the ownership of the business share the assets, profits, and legal liabilities. General partnerships are said to be <em>unlimited liable </em>since the <em>personal assets of the individuals involved can be taken into consideration in front of business obligations</em>.
Answer:
The correct answer is b. It makes a company more susceptible to competitive inroads.
Explanation:
Market segmentation is essential to know how is the public that makes up the market in which we are. There are a number of advantages and disadvantages of market segmentation that you should keep in mind, before venturing into such a study for your company.
Errors when establishing the segment
The first and main disadvantage of including market segmentation techniques is the wrong selection of a segment.
Keep in mind that if the company chooses a wrong market fraction, too small or irrelevant for the company's business, then the business will find it difficult to market its product.
Commercial Saturation Issues
Another drawback derived from this strategy is to enter a market segment in which there is strong competition and saturation. When we are about to create a company or product we must take into account the development possibilities we have in that market.
