A sole proprietorship has the single owner of the business and the main goal of the owner is to increase the value of his capital invested in the business which is also called as Equity.
The objective of maximization include the maximization of net income given the current resources of the firm
A proprietorship has only one owner so there is no need to decrease long-term debt to reduce the risk to the owner.
The proprietor wants to earn more income and he will have to pay more taxes so the goal is not to minimize the tax impact on the proprietor.
Similarly, the goal is also not to minimize the reliance on fixed costs.
Hence the correct answer is:
Maximize the market value of the equity
Answer:
No, Hines is not guilty of unlawful price descrimination
Explanation:
Hines actions has not meet the criteria for price discrimination which include giving different prices based on gender, race or religion and never prevented the resale of product and the product package for sale never indicated the inclusion of free demonstrator and free advertising material.
Answer:
-$7,621
Explanation:
Calculation to determine the net present value of the machine
Using this formula
Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested
Let plug in the formula
Net present value of the machine=($2,800+$26000*2.4437)-$78,000
Net present value of the machine=($28,800*2.4437)-78,000
Net present value of the machine=$70,379-$78,000
Net present value of the machine=-$7,621
Therefore the Net present value of the machine is -$7,621
