Answer:
Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.
Explanation:
Data provided:
Interest rates = 7.85 %
The rate of inflation = 12.3 %
Now,
The Real interest rate is calculated as :
Real interest rate = Nominal interest rate - Inflation rate
on substituting the respective values, we get
Real interest rate = 7.85% - 12.3%
Or
The real interest rate = - 4.45%
Here,
Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.
Answer:
Please see the answer below:
Explanation:
Purchase of equipment for cash (b)
Payment of employee salaries (a)
Collection of cash from customers (a)
Cash proceeds from a note payable (a)
Purchase of common stock of another corporation for cash (b)
Issuance of common stock for cash (c)
Sale of equipment for cash (a)
Payment of interest on note payable (a)
Issuance of bonds payable in exchange for land and building (d)
Payment of cash dividends to shareholders (c)
Payment of principal on note payable (c)
Answer: the correct option is 2. raise the wages of unionized workers and reduce unemployment.
Explanation: Unions are organizations that negotiate with corporations, business establishments, and other organizations on behalf of the members of their union.
Over time, Unions have often been credited with helping their members secure favorable working conditions, and increment in wages.
Unions have also been known to influence the demand and supply of labour, depending on the level of wage that corporations are willing to operate on. Unions will usually bargain for higher wage levels for their members, and proceed to supply labour if corporations agree.
Answer:
(a) S-Type
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
A company with single taxation is called S-Type i.e sole proprietorship.
Basically, a sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.
Answer:
The Gold Division’s break-even sales is closest to $102,174
Explanation:
Break even point is the level of sales at which business has no profit no loss position. At this level of sales business covers all the variable and fixed costs as well.
Gold Division
Sales $131,000
Contribution margin $60,260
Contribution Margin Ratio 46%
Traceable fixed expenses $47,000
Break-even Sales $102,174
Common fixed cost will not be added in calculation of divisional break-even.
Working
Contribution margin ratio = Contribution margin / Sales = 60260 / 131,000 = 46%
Break-even Sales = Fixed cost of division / Contribution margin of division = $47,000 / 46% = $102,174