A tax that can be passed onto someone else is known as a/an ______

If a utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investme

Firlakuza [10]

Question:

If an utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investment, this sector would result in the smallest change in quantity demanded in the long run and thus higher profits. True or false?

Answer:

The answer is True.

Explanation:

Change in the demand for gasoline and or electricity is primarily set by the number of industrial or bulk users.

Scarce goods are allocated though the help of prices. It is important to note that demand for gasoline or electricity is more elastic in the long term, so small changes in price will alter supply and demand in either direction in the shortrun.

The demand for gas or electricity are by nature inelastic. This means that when prices go up, demand goes down but not by much.

It means that in the short term, the individuals cannot alter their lifestyle immediately to adjust for the hike in prices.

To adjust they would have to probably purchase new devices which or cars which consume less gas or electricity.

The effect this has for the company on the overall is that they are able to achieve their aim of recouping their capital investments from the planned increase in price.

Cheers!

8 0

3 years ago

ABC Corporation has E & P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) t

stealth61 [152]

Answer: Paul has a taxable dividend of $15,000.

Explanation:

From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.

The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:

= $70,000 - $55,000

= $15,000

Therefore, Paul has a taxable dividend of $15,000.

5 0

2 years ago

What is the uses of trading, profit and lost account

Len [333]

The profit and loss account is used to determine the net profit of the business. The starting point for the profit and loss account is the balance carries down from the trading account which is the gross profit of business. Hope this helped you out...

4 0

3 years ago

You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use

Jobisdone [24]

Answer:

$17,167

Explanation:

The first step is to calculate amount of cash that would be charged

For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.

Present value is = 2,221

Then

The present value of the payment options is =

($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))

$520 * 22.396 + $10,000 * 0.5521

$11646 + $ 5521

$17,167

Therefore the amount of cash the car dealer would charge is $17,167

7 0

2 years ago

______ ratios measure how much operating income an organization is able to generate relative to assets, owners' equity, and sale

tankabanditka [31]

According to business strategy, the Profitability ratios measure how much-operating income an organization can generate relative to assets, owners' equity, and sales.

<h3>What are Profitability ratios?</h3>

Profitability ratios s a form of financial method or procedure in which firms assess or evaluate the ability to generate income or revenue based on the capacity and resources.

<h3>Different types or methods of Profitability ratios:</h3>

Gross Profit Ratio
Operating Ratio
Operating Profit Ratio
Net Profit Ratio
Return on Investment

Hence, in this case, it is concluded that the correct answer is "Profitability ratio."

Learn more about the Profitability ratio here: brainly.com/question/25253887

4 0

2 years ago

A tax that can be passed onto someone else is known as a/an _______ tax.