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vagabundo [1.1K]
3 years ago
12

Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract c

apital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the __________. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.
Business
1 answer:
Arturiano [62]3 years ago
7 0

Answer:

Interest rate

Explanation:

Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the <u>Interest rate</u>. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.

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Creating a different and unique product is called a
polet [3.4K]

Answer:

Product Differentiation

Explanation:

This is simply a strategy used by marketers to make their product different from that of their competitors.

Product Differentiation aims to make a product different so that potential buyers would identify the uniqueness of the product from other similar products.

4 0
3 years ago
Sabrina owns a cosmetics company. her company has recently developed a range of beachwear make-up products. when the marketing d
Verdich [7]

Answer:

Noise

Explanation:

In advertising, "noise" is something that distracts from your message. The beaches are noise because Sabrina feels that they distract from showing the makeup products.

6 0
3 years ago
On January 2, 20Y4, Whitworth Company acquired 40% of the
Gelneren [198K]

Answer:

Journal entries needed for:

a. Purchase of stock

b. Share of Aloof income

c. Dividend

d. Sale of Aloof company stock

a. Purchase of stock

Date                  Account Title                                   Debit                      Credit

Jan 2, 20Y4      Investment in Aloof company       $340,000

                          stock

                         Cash                                                                          $340,000

b. Share of Aloof income

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024     Investment in Aloof company       $72,000

                          stock

                         Income of Aloof Company                                        $72,000

<u>Working:</u>

= 40% * 180,000 income

= $72,000

c. Dividend

Date                  Account Title                                   Debit                   Credit

Dec 31, 2024     Cash                                             $4,000

                         Investment in Aloof company                                  $4,000

                         stock

<u>Working:</u>

= 40% * 10,000 dividend

= $4,000

d. Sale of stock  

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024    Cash                                             $405,000

                          Loss on sales of Aloof                 $3,000

                         company stock

                         Investment in Aloof company                                  $408,000

                         stock

<u>Working:</u>

Value of stock = Purchase price + share of Aloof income - Share of dividend

= 340,000 + 72,000 - 4,000

= $408,000

6 0
2 years ago
Under perpetual inventory system, in addition to making the entry to record a sale, an entity would
kolezko [41]

Answer:

record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.

Explanation:

The perpetual inventory system maintains records of inventory movement and changes at the time of an inventory transaction, purchase, sale, or return using the inventory and cost of goods sold accounts instead of purchases account used under the periodic inventory system.  An inventory purchase increases the value of inventory while a sale reduces it, and adjustments are made for returns.  When goods are purchased or returned by customers, the inventory account is debited.  When goods are returned to suppliers or sold, the account is credited.

5 0
3 years ago
Which type of variance causes operating income to be greater than the budgeted operating income?
ivann1987 [24]

Favorable variance is the variance causes operating income to be greater than the budgeted operating income.

A favorable variance is wherein real income is greater than budget, or real expenditure is less than budget. That is similar to a surplus in which expenditure is much less than the available earnings.

Is Favorable variance usually accurate?

Favorable variances are defined as either generating greater revenue than expected or incurring fewer fees than expected. Damaging variances are the other. Much less revenue is generated or greater prices incurred. Either may be correct or terrible, as these variances are based on a budgeted amount.

How do you inform if a variance is favorable variance or destructive?

If sales have been better than expected, or expenses were decrease, the variance is  favorable variance. If sales have been decrease than budgeted or costs were better, the variance is detrimental.

Learn more about  favorable variance here:- brainly.com/question/28268911

#SPJ4

7 0
1 year ago
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