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salantis [7]
3 years ago
13

A major reason Enron used special purpose entities was: a. To increase equity dilution b. To increase working capital c. Off-bal

ance-sheet reporting d. To increase pension plan funding levels
Business
1 answer:
Liono4ka [1.6K]3 years ago
7 0

Answer:

<h2>The correct answer here is option c. or Off balance sheet reporting.</h2>

Explanation:

The usage of special purpose entity(SPE) was a strategical move by Enron with the major objective to restrict or conceal the financial debt or the existing assets and avoid any responsibility of consequent financial liability that might reflect in the accounting books such as Balance Sheet.SPE basically constitutes a strategy for the company to conceal any financial risk or liability and avoid or hide any kind of financial debt in the accounting books to gain investor's trust and confidence.The company also allegedly used the same strategy to ensure book earnings and consistent operational cash flow.

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Choose the correct definition of purchasing power parity.
Elanso [62]
956-455-9448 call me please
8 0
3 years ago
Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con
Anastasy [175]

Here, we are decide the best option between making the part or buying the part.

a.                  Make or Buy Analysis

Particulars                              Make amount    Buy amount

Direct Materials                            $4.50

Direct Labor                                $1.00  

Overhead (80% of Direct Labor)    $0.80  

Cost to buy                            <u>              </u>            <u>$4.70</u>

Cost per unit                              <u>$5.70    </u>          <u>$4.70</u>

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

See similar solution about Analysis

<em>brainly.com/question/23287319</em>

3 0
2 years ago
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $ 3,500 winnings in the bank. The reserve requ
Katarina [22]

Answer:

$3,325

Explanation:

Reserves are maintained to fulfil the customers withdrawal requirement. It is imposed by the State bank over the Banks to hold a specific percent of cash as reserves. Bank hold the reserves and invest or utilize the residual in the market.

In this question 5% of $3,500 will be reserved and the remaining $3,325 will be available for the money supply in the market in different forms.

the maximum possible increase in the money supply as a result of your bank deposit is $3,325.

5 0
3 years ago
A tariff:_________.
Sergio [31]

Answer:

<h2>C. Makes domestic consumer worse off. </h2>

Explanation:

A tariff is levied on the exports and imports between two countries. It is meant to regulate the foreign trade and encourage the domestic industries and safeguard them from the competition of foreign goods. Tariffs are source of income for states. Tariffs and import export quotas are most used instruments of protectionism. Tariffs are fixed or variable.

It can put the domestic consumer in an advantageous position as due to tariffs they would not be able to get less costly products.

8 0
3 years ago
As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers.
likoan [24]

The answer in the space provided is hurt. It is because of their influence in the following factors such as the variety, quantity and the quality of products, the trade barriers will most likely hurt the domestic consumers involved in it.

5 0
4 years ago
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