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BaLLatris [955]
3 years ago
9

By shutting​ down, a firm A. can avoid paying taxes on its previously earned profits. B. stops receiving revenue but continues t

o pay variable costs. C. stops receiving revenue and is stuck with its fixed costs. D. avoids its sunk costs as well as its variable costs.
Business
1 answer:
stiv31 [10]3 years ago
4 0

Answer:

<h2>C. Stops  receiving revenue and is stuck with its fixed costs  </h2>

Explanation:

Shut down means that a firm is temporarily suspending the production but not exiting the industry or going out o business and the firm would start production if the market improves. It is a short-run decision.  A firm that has been shut down generates zero revenue and doesn't incurs variable costs, but does incurs the fixed costs. Its profits is equal to the negative of fixed costs. R<em>ents and other business costs that remains constant regardless of the good and services produced is called fixed costs</em>.

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The answer might be option no C

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LO 8.5When might an unfavorable variance be a good outcome?
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Answer: An unfavorable variance can be used to detect a drop in estimated income early, and then solutions to the challenge can be identified.

Explanation:

An unfavorable variance is the difference between a company's projected expectation and the actual outcome of a financial activity of the company, where the actual outcome is less favorable than the projected expectation.

The information from an unfavorable variance can help alert a company to a negative outcome early, and the company's leadership can then find ways of solving the cause of the negative outcome.

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hailey corporation pays a constant $13.50 dividend on its stock. the company will maintain this dividend for the next 8 years an
Elena-2011 [213]

The current share price is approximately $69.47

<h3>What is the Share price?</h3>
  • The cost of one share of a group of marketable equity shares of a firm is known as the share price.
  • Simply put, the stock price is either the lowest possible price or the maximum price someone is ready to pay for the stock.
  • Analysts estimate the behavior of asset prices, especially share prices in stock markets, using random walk approaches in economics and financial theory.
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  • In such a scenario, the price is influenced by all available information and is only subject to alteration in response to the release of new information.

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Hence, the current share price is approximately $69.47

To learn more about Share price from the given link

brainly.com/question/28546868

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5 0
1 year ago
Suppose an economy has a law that requires all wages to be adjusted quarterly to reflect changes in the general price level. Thi
8_murik_8 [283]

Answer:

economic (or business) cycles are less severe.

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If the wages follow the general price level, it means that they will follow the inflation rate. When the economy is strong and inflation might rise, then the wages should increase accordingly. When the economy is starting to enter a recession then the inflation rate will reduce, so wages will not increase as much (if any increase at all).

This type of economic policy favors expansion cycles since private consumption is the main component of the GDP and also helps when the economy enters a recession because the wages will follow inflation rate which will help make the recession less severe and hopefully shorter.

One basic concept for this to work is that inflation is always a positive number, countries rarely (if ever) go through deflation processes.

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