Answer: Memorandum Of Understanding (MOU)
Explanation: A memorandum of understanding may be explained as a binding document between two or more parties usually employed to showcase an agreement in action, decision or intent of the parties involved. The memorandum of Understanding may be adopted to serve as a commitment to partner between two or more parties where the parties prefer to adopt a gentle or leave out legal procedure in their agreement deal.
In the scenario above, Bob will have to create a Memorandum of Understanding which will be signed by Bob's company and the third party to signify a convergence of will between them.
Answer:
$926,073
Explanation:
Enterprise value=market capitalization+value of debt-cash
value of the firm=price-earnings ratio=11.8
earnings=net income
net income=profit margin*sales
net income=$697,000*6.8%=$47,396
11.8=market capitalization/$47,396
market capitalzation=11.8*$47,396=$559,272.80
enterprise value=$559,272.80+$408,000-$41,200=$ 926,072.80 (approx $926,073)
Answer:
The journal entry which is to be recorded is shown below:
Explanation:
Contract Price A/c...................................Dr $500,000
Cost of constructionA/c.........................Dr $150,000
Revenue A/c................................Cr $2,000,000
As the company recording the revenue, so the revenue account is credited. It involves the cost of construction which is debited and the contract price account is debited.
Note: The options are missing. So, proving the journal entry in the answer.
Answer:
The options that are true regarding dividends include:
- A stock dividend increases the number of outstanding shares.
- A stock dividend commonly indicates management's confidence that the company is doing well.
Explanation:
A stock dividend is a payment to shareholders that is made in shares rather than in cash.
Once investors receive stock dividends, the number of their shares will increase. this validates the first statement
Secondly, stock dividends have a tax advantage for the investor. The share dividend, like any stock share, is not taxed until the investor sells it unless the company offers the option of taking the dividend as cash or in stock.
The stock dividend has the advantage of rewarding shareholders without reducing the company's cash balance thereby indicating management's confidence in the company is well-being.
Answer:
The correct answer is option b.
Explanation:
Positive economics is a branch of economics that is concerned with explanation of economic phenomena. It is based on facts and data. It answers to what is, what was.
Normative economics, on the other hand, is concerned with judgment. It answers to what should be or what ought to be.
Structural unemployment is caused because of a mismatch between the skills that the workers possess and the skills that the employers want.
Innovation and technological changes will always cause structural unemployment and create winners and losers. So the government should focus on helping the displaced workers in finding new jobs, instead of limiting innovation.
As this involves what should be done, it is a normative issue.
