Answer:
True.
Explanation:
When companies are initiating measures to boost profits for public interest, the public social welfare is increased. Companies do represent that the purpose of their business is not only to raise profits but also to serve society and their welfare. The statement is therefore true corporate social responsibility is not relevant when profits of organizations are aligned to the public interests.
Answer:
The key factors that the owner should look at are:
- Estimated budget for opening the new restaurant. The owner has to pay for each franchise restaurant, plus the equipment, furniture, and rent.
- Target market and potential demand. The restaurant current demand is very high, but will it be high if another restaurant opens.
- Location is extremely important for any business, and a restaurant is not the exception.
Answer:
$ 75 000
Explanation:
Economic profit = total revenue from sales - ( total expenses + opportunity cost) = $ 600000 - ( $ 200000 + $ 175 000 + $ 45000 + $ 105000) = $ 75 000
Answer: It would not appear on the statement of cash flows but rather on a schedule of noncash investing and financing activities.
Explanation:
The Statement of Cashflows only contains transactions that spent or brought in cash. It therefore only deals with cash transactions. This is a noncash investing and financing activity and so it will not be recorded in the Cashflow statement.
The way to record this transaction would be to either record it on a schedule of noncash investing and financing activities or it can be included as a footnote at the bottom of the Cashflow statement.