Are yall doing anything for summer vacation?

Durable ceramics, inc., provides inexpensive ceramic tile to builders of institutional buildings such as schools, prisons, and p

anzhelika [568]

Answer:

d. cost-less will go out of business, and durable will gain higher power over its customers.

Explanation:

Durable ceramics, inc will only reduce its prices if this is to its advantage. We live in a capitalist world where companies make decisions based on their own benefits. In this case, in order for Durable ceramics, inc to lower its prices and have no losses, it would expand its sales. In this way, Durable ceramics, inc would be able to capture customers from its competitors, and could make them go bankrupt.

Thus, we can conclude that if Durable ceramics, inc reduced its prices, Cost-Less would go out of business and Durable would gain greater power over its customers.

5 0

3 years ago

How do banks create money?

Dafna11 [192]

Answer:

Commercial banks, required reserve, loans, deposits, create.

Explanation:

The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.

The major function of commercial banks is

1. Accepting deposits from people and business organzations.

2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.

Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.

Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.

5 0

3 years ago

Whispering Winds Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to

k0ka [10]

Answer:

Aug. 1 Issues shares of common stock to investors in exchange for $10,800.

Accounting equation:

Asset + 10,800

Equity +10,800

Journal entry:

cash 18,000 debit

common stock 18,000 credit

Aug. 4 Pays insurance in advance for 3 months, $1,200.

Accounting equation:

Asset + 1,200

Assets - 1,200

Net 0

Journal entry:

prepaid rent 1,200 debit

cash 1,200 credit

Aug. 16 Receives $730 from clients for services rendered.

Accounting equation:

Asset + 730

Equity +730

Journal entry:

cash 730 debit

revenues 730 credit

Aug. 27 Pays the secretary $580 salary

Accounting equation:

Asset - 580

Equity - 580

Journal entry:

salaries expense 580 debit

cash 580 credit

Explanation:

We need to disclose how the impact in the accounting equation and the journal entry should be done:

Aug 1st the common stock is an equity account that is increasing

we receive cash that is an asset

August 4th we are using our cash to pay in advance the rent.

this gives a right to use the rental space for 3-months thus, it is not an expense is a new asset. There is no change in the accounting equation only the composition of assets changed.

August 16th we recognize earnings through revenues account this increases the equity of the company as well as assets.

August 27th in this case we pay the salaries which are an incurred cost, therefore, expense. This decreases equity.

We also use cash making assets to decrease as well.

6 0

3 years ago

Equilibrium in the market-place means that quantity supplied 'Qs' equals quantity demanded 'Qd'.

steposvetlana [31]

Answer:

P = 380

Explanation:

At equilibrium, we have:

Qs = Qd

Since Qs = 1,050 and Qd = 2,000 – 2.5P, we therefore have:

1,050 = 2,000 – 2.5P

We now proceed to rearrange and solve for P as follows:

1,050 - 2000 + 2.5P = 0

2.5P = 2,000 - 1,050

2.5P = 950

P = 950 / 2.5 = 950 ÷ 2.5

P = 380

Therefore, the equilibrium price 'P' is equal to 380.

5 0

3 years ago

What is the pattern of development in which houses, town houses, condominiums, and two- to six-story apartments are built on par

rodikova [14]

Cluster Development. It is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter.

3 0

3 years ago