Answer:
George
Explanation:
Both price ceilings and price floors can cause economic shortages, because they are government imposed distortions to prices. In other words, they do not allow prices to adjust supply and demand.
George knows this because he is probably an economist, and that is why he does not recommend neither price ceilings nor price floors.
Answer:
B. sales volume changes
Explanation:
Operating leverage measures the effect of fixed cost on operating income when volume of sales change.
Operating leverage is created when a firm has fixed operational expenses. E.g. depreciation.
The degree of operating leverage = percentage change in operating income/ percentage change in unit sold
Operational income = Revenue - operating expenses - Cost of goods sold.
Answer:
d.
Explanation:
Based on the scenario being described within the question it can be said that In this case, MegaFurnishings must give a reasonable time, with notice, to wind up the business. This is a mandatory requirement when terminating the franchisee contract, and is done in order for the franchisee to become aware of the situation and have a chance to take appropriate actions regarding the event.
Answer:
The correct answer is letter "B": Project's expected cash flows.
Explanation:
Capital budgeting is a planning method used by businesses to decide which new projects to invest in and how to fund them. The types of projects evaluated in capital budgeting include large expenditures such as the <em>construction of a new factory, the acquisition of new equipment, the development of a new product </em>or <em>the purchasing of another company</em>.
<em>In the beginning, it is crucial to </em>estimate the firm's cash flows<em> to determine how much funds will be available for investing and covering expenses. If insufficient, the company must look for forms of raising capital such as issuing investment vehicles such as stock or bonds or relying on financial institutions through loans.</em>
Answer:
The journal entry for the sale of the shares is as:
Explanation:
Cash A/c.......................Dr $4,000
Treasury Stock A/c......Cr $4,000
As there is sale of stock, so the corporation is receiving the cash and any increase in the asset is debited. Therefore, the cash account is debited. And the stock is going out of the business, then decrease in stock is credited. Therefore, the treasury stock account is credited.
Working Note:
Cash = Number of Shares × Price per share
= 1,000 × $4
= $4,000