In the product markets of the circular flow model, households provide <u>Consumption Spending (or Revenues) </u>to the business sector in exchange for goods and services.
Consumer spending is the total amount of the money spent by people and families in an economy on finished goods and services for their own use and enjoyment. All private purchases of durable, nondurable, and service products are included in modern measurements of consumer spending.
To help estimate and plan investment and policy decisions, investors, corporations, and regulators regularly monitor published statistics and reports on consumer spending.
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It is a way of managing a companies relationship with current and future relationships. Keeping a good name with your customers treating them right, in most business the customer is always right even if they are wrong.
Answer:
a. $8,000 gain
Explanation:
The face value of the bonds purchased by Pluto Corporation are $120,000. The bonds are purchased at discount of $1,980. The bonds have carrying value of $126,019 at the time of purchase. The net gain or loss is calculated by the difference between two values.
$120,000 - $126,019 - $6,019
The discount amount of the bond was $1,980.
Total gain on the bonds approximately ($6,019 + $1,980) = $8,000
Answer:
Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
Explanation:
Answer:
The answer is: Rose will be taxed as receiving a $15,000 dividend distribution.
Explanation:
Since Parent Corporation owns 70% of Child Corporation, for tax purposes they are considered as one single firm. Rose is the main stockholder of Parent Co. so for tax purposes she is also a stockholder in Child Co. When Child Co. gives her $15,000 in exchange for Parent Co. stock, this would be considered as a dividend distribution rather a stock sale.
