According to the theory of the invisible hand, when there is competition, self-interested decisions advance the society interests.
<h3>What is the invisible hand theory?</h3>
Adam Smith, a Scottish philosopher and economist, popularized the metaphor of the "invisible hand" to describe the processes by which positive social and economic consequences may result from the collective self-interested acts of individuals, none of whom intend to produce such outcomes.
<h3>How is Adam Smith's invisible hand idea still applicable today?</h3>
An important economic idea that is still relevant today is the invisible hand theory. It may provide insight into the operation of free markets and consumer behavior. Although the idea is significant, it is frequently applied in ways that are inconsistent with Smith's original text or out of context.
<h3>What exactly is the "invisible hand" and why is it significant?</h3>
The term "invisible hand" describes how an individual's self-interests help society as a whole. In other words, through pursuing the profit motive, individuals are required to offer commodities at a cost that others are prepared to pay. Society gains as a result since those goods might not have been created otherwise.
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Answer: Foreign Direct Investment
Explanation:
Foreign Direct Investment is a type of investment into a country where the foreign investor establishes a presence by actually running and operating a company in the domestic country.
This is what the large theme park wants to do in Pantay. By making a commitment and hiring hundreds of locals, the company is intent on running a company on the island so this is Foreign Direct Investment.
Answer:
June 1 2020
No entry
September 1, 2020
Dr Cash $1,980
Dr Accounts receivable $300
Cr Sales revenue $1,730
Cr Unearned sales revenue $550
September 1, 2020
Dr Cost of goods sold $1,140
Cr Inventory $1,140
October 15 2020
Dr Cash $300
Dr Unearned service revenue $550
Cr Accounts receivable $300
Cr Service Revenue $550
Explanation:
Preparation of the journal entries for Geraths in 2020
June 1 2020
No entry
September 1, 2020
Dr Cash $1,980
Dr Accounts receivable $300
($1,730+$550+$1,980)
Cr Sales revenue $1,730
($1,980/$2,610*$2,280)
($1,980+$630=$2,610)
Cr Unearned sales revenue $550 ($630/$2,610*$2,280)
September 1, 2020
Dr Cost of goods sold $1,140
Cr Inventory $1,140
October 15 2020
Dr Cash $300
Dr Unearned service revenue $550
Cr Accounts receivable $300
Cr Service Revenue $550
Answer:
$18.33
Explanation:
The company just paid an annual dividend of $2.24
The dividend increase by 2.3% annually
= 2.3/100
= 0.023
The required return is 14.8%
= 14.8/100
= 0.148
Therefore the price that will be paid for one share of LBM stock can be calculated as follows
= 2.24 × (1+0.023)/(0.148-0.023)
= 2.24 × 1.023/0.125
= 2.29153/0.125
= $18.33
Hence $18.33 will be paid for one share of LBM stock
Answer:
(a) $210,000
(b) $351,500
Explanation:
(a) Given that,
Fair value of equipment = $1,440,000
Face Amount of the note = $1,230,000
Gain on sale:
= Fair value of equipment - Face Amount of the note
= $1,440,000 - $1,230,000
= $210,000
(b) Given that,
Accrued Interest Payable = $290,000
Interest rate = 5%
Gain on the partial settlement and restructure of the debt:
= Accrued Interest Payable + (Face amount of note × Interest rate)
= $290,000 + ($1,230,000 × 5%)
= $290,000 + $61,500
= $351,500