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Tcecarenko [31]
4 years ago
13

You and a friend want to open new pet-grooming and pet-services shop. Once established, you intend to open a second store in a l

arger town 20 miles away. If store number two is a success, you plan to start franchising your company. _____ will probably be the most important source of funds for your new business.
Business
1 answer:
Andreyy894 years ago
4 0

Answer:

Personal Assets

Explanation:

You and a friend want to open new pet-grooming and pet-services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. <u>Personal Assets</u> will probably be the most important source of funds for your new business.

<u>When starting a business as a sole proprietorship or partnership, the most likely source of start up fund is the converting your personal assets. </u>

<u>Personal assets are items of value that belong to an individual. They might be tangible personal assets like houses and cars, and also include such financial assets as savings accounts, checking accounts, and retirement accounts. </u>

<u>So in the scenario, the business is likely to start by a combination of savings of the two friends</u>

<u />

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There may be a maximum balance requirement for a savings account.<br> True<br> False
luda_lava [24]

Answer:

true

Explanation:

For example, if a bank account has a $100 minimum balance requirement, you want to make sure that you don't let your balance fall to $99.99 or less.

4 0
3 years ago
Baker Industries’ net income is $24,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $24,0
Lostsunrise [7]

Answer:

ROE = 9.23%

ROIC = 7.62%

Explanation:

Data:

Net Income NI = $24,000

Interest Expense IE = $5,000

Tax Rate T = 25% = 0.25

Notes Payable NP = $24,000

Long-term debt LTD = $80,000

Common Equity CE = $260,000

Return On Equity ROE = ?

Retrun On Invested Capital ROIC = ?

Earnings Before Taxes EBT = ?

Invested Capital IC = ?

Earnings Before Taxes and Interest EBIT = ?

Calculations:

ROE = \frac{NI}{CE}= \frac{24,000}{260,000}=0.0923 = 9.23%

EBT = \frac{NI}{1-T} = \frac{24,000}{1-0.25} = \frac{24,000}{0.75} = 32,000

EBIT = EBT+IE=32,000 + 5,000=37,000

IC =NP+LTD+CE=24,000+80,000+260,000=364,000

ROIC = \frac{EBIT*(1-T)}{IC} = \frac{37,000*(1-0.25)}{364,000}= \frac{37,000*(0.75)}{364,000}= \frac{27,750}{364,000}= 0.0762=7.62%

Hope this helps!

4 0
3 years ago
the inventory method that will always produce the same amount for the cost of goods sold in a periodic invenotry system as
liraira [26]

Answer:

FIFO.

Explanation:

Note: This question is not complete. The complete question is therefore given before answering the question as follows:

The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:

FIFO.

LIFO.

Weighted average.

None of these answer choices is correct.

The explanation to the answer is now given as follows:

First-in, first-out (FIFO) is an inventory method under which the oldest inventory items are recorded in the account as being issued or sold first.

A periodic inventory system refers to an inventory valuation method under which there is an update to the inventory account at the end of an accounting period instead of after every sale and purchase of inventory items.

A perpetual inventory system to an inventory valuation method under which there is an update to the inventory account after every sale and purchase of inventory items. This is done by using computer softwares such as computerized point-of-sale systems and enterprise asset management software.

When FIFO inventory method is being used, both the periodic inventory system and perpetual inventory system will always produce the same amount for cost of goods sold.

Based this explanation, the correct option for this question is FIFO.

4 0
4 years ago
When the government lowers income taxes, consumption is ______________, causing a __________ the ad curve?
xeze [42]
When the government lowers income taxes, consumption is Stimulated, causing a <span>rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.</span>
6 0
4 years ago
Question help using​ ________ may cause a manager to reject a project that may be profitable to the company as a whole
mr Goodwill [35]
The answer is <span>ROI
If the manager is evaluated based on Return on Investment, that manager will be very likely to reject every projeccts which return is below a certain departement standard no matter if that project is profitable for the company in the fear of being replaced by those who show better numbers.</span>
7 0
3 years ago
Read 2 more answers
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