Answer:
a) Limited liability company
Explanation:
Considering the options given, as an advisor the form of business that I would recommend is: limited liability company that is a structure in which the owners are not responsible with their personal assets for the company's debts as the three owners are concerned about this risk.
I would not advise the other forms of business because the sole proprietorship is a firm that is run by one person, the general partnership is a structure in which two or more people agree to share unlimited liability which means that they share all their personal assets and are responsible for any debt the company has with them and the master limited partnership is a company that trades securities in the market.
Answer:
The correct answer is option d.
Explanation:
When there is an increase in the government expenditures, the income in the economy will increase. As a result, the demand will increase. The increase in demand will increase the price level.
The suppliers will produce more. To increase output more capital investment will be required. This will further cause an increase in the demand of loan-able funds. So, the interest rate will increase as well.
With the increase in interest rates, the cost of borrowing will increase. This will lead to lesser capital investment and as a result the aggregate demand will be smaller, because of lower production and thus lower income.
Answer:
Explanation:
Dividends through year 1 to 5:
D1 = 2.15*(1+0.30)^1 = 2.80
D2 = 2.15*(1+0.30)^2 = 3.63
D3 = 2.15*(1+0.30)^2 * (1+0.18)^1 = 4.29
D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58
D5 = 2.15*(1+0.30)^2 * (1+0.18)^3 = 12.86
PV (D1) = 2.80
PV (D2) = 3.63 *PVIF = 3.63 * 0.87719 = 3.19
PV (D3) = 4.29 * 0.76947 = 3.30
PV (D4) = 8.58 * 0.67497 = 5.79
PV (D5) = 12.86 * 0.59208 = 7.62
Total of all PV's = 22.69
Explanation:
The computation of the activity rate for each activity is shown below:
As we know that
Activity Rate = Expected rate ÷ Activity Driver
For Handling material = $650,000 ÷ 100,000 = $6.50 per part
For Inspecting product = $925,000 ÷ 1,500 parts = $616.67 per batch
For Processing purchase orders = $130,000 ÷ 700 = $185.72 per orders
Paying supplies = $200,000 ÷ 500 = 400 per invoices
Insuring the factory = $325,000 ÷ $40,000 = $8.125 per square foot
Designing packaging = $100,000 ÷ 2 models = 50,000 per models
Companies may try to lower their labor costs by laying off higher paid workers.
Typically the higher paid workers will be professionals who have worked their way up over time and tend to be older, while younger workers fresh out of school and looking for their first jobs will be more willing to take lower salaries.
