What is the biggest challenge facing entrepreneurs who start small businesses?

Why we remove interest amount from 1 year amount?

Lynna [10]

The interest amount earned is removed from the accumulated amount of savings because the interest is simple interest.

<h3>What is Interest?</h3>

interest is the percentage amount earned over the savings made and deposited in the account, the interest is a basic market interest rate that is applied to the savings to calculate the amount of interest income for a given period of time.

The savings are deposited and they are applied for the interest rate the interest income is also included in the original savings, then for the next year the interest rate will again be only applied to the original savings amount and not the compounded amount that is the original amount of savings plus the interest earned in the first year.

That is why the interest earned in the first year is deducted from the total savings in the account to calculate the interest income for the second year.

Learn more about Interest at brainly.com/question/17072533

#SPJ1

7 0

2 years ago

Vertical Analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For Years Ended December 31

Alex73 [517]

Answer:

Cornea Company

Income Statements For Years Ended December 31

2019 2018

Amount Percent Amount Percent

Fees earned $680,000 100% $576,000 100%

Operating expenses <u>$482,800</u> 71% <u>$420,480</u> 73%

Operating income <u>$197,200</u> <u>29%</u> <u>$155,520</u> <u>27%</u>

<u></u>

Operating expense working

2019= 482,800/680,000 * 100/1= 71% = 0.71

2018= 420,480/576,000 * 100/1= 73% = 0.73

Operating Income working

2019= 1 - 0.71 = 0.29 = 29%

2018= 1 - 0.73 = 0.27= 27%

3 0

3 years ago

Suppose that you are hired by a producer of wooden pallets to determine what sort of competition the firm faces. Due to a accide

gulaghasi [49]

During this week of low production, the price for pallets does not change at all. Given this observation this firm likely faces Oligopoly. Below is further explanation on Oligopoly.

<h3>What is Oligopoly?</h3>

An oligopoly is a market featured by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power.

Therefore, the correct answer is Oligopoly.

learn more about Oligopoly: brainly.com/question/13658628

#SPJ1

4 0

3 years ago

Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club A. Wilson

Leto [7]

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.

In this situation, Wilson owns a club and works as an accountant in it.

This type of cost defines an Implicit cost for Wilson's health club.

5 0

3 years ago

Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open

harina [27]

Answer:

b. sole proprietorship.

Explanation:

A sole proprietorship is a single business entity that is responsible for all profits and losses and may use a sole name or a business name as a private company is known for its flexibility and thus does not need to take large loans from the government.

Have an advantage of less administrative paperwork and record-keeping than a corporation, have less risk of being stolen by investors.

6 0

3 years ago

What is the biggest challenge facing entrepreneurs who start small businesses?​

What is the biggest challenge facing entrepreneurs who start small businesses?