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Damm [24]
3 years ago
13

What is a major disadvantige of a centrally planned economy

Business
1 answer:
cupoosta [38]3 years ago
6 0

Answer:

Lack of competition

Explanation:

A centrally planned economy lack competitiveness. The government decides what to produce, the price, and the distribution channel. Because of these restrictions, there is no motivation for profits. Without competition, a centrally planned economy will have the following features.

  1. There be a lot of inefficiency and wastefulness.
  2. Consumers will not have a variety of goods and services to choose from in the markets.
  3. Businesses will make low profits.
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A recent annual report for FedEx contained the following data:
Maru [420]

FedEx

Accounts Receivable Turnover

Numerator Net Credit Sales = 35,687 = 9.02 times

Denominator Average Accounts Receivable (4415+ 3495)/2

Average Daily Accounts Receivable Turnover

Numerator Days in 4 Years = 0.365 4 4 = 46 debt turnover ratio of 9.02

Credit is generally defined as an agreement between a lender and a borrower. Credit also refers to the creditworthiness or credit history of an individual or entity. In accounting, loans can reduce assets or increase liabilities, and can reduce expenses or increase income.

In personal banking or financial accounting, a credit is an entry indicating that money has been received. Normally, a checking account register has the balance (deposits) on the right and the debits (money spent) on the left. In a loan, all the requested amount is given at once at the time of lending, whereas in a loan, the bank uses the full amount of the loan to give the customer an amount that can be used as needed.

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7 0
1 year ago
Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2012. An additional 200,000 shares are issued on Apri
12345 [234]

Answer:

5,110,000 and 5,170,000.

Explanation:

earnings per share EPS = (net income - preferred dividends) / weighted average of outstanding shares

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weighted average outstanding shares = 4,800,000 + 150,00 + 160,000 = 5,110,000

diluted shares = ($6,000,000 / $1,000) x 40 x 3/12 = 60,000

diluted EPS = (net income - preferred dividends) / (weighted average of outstanding shares + diluted shares)

weighted average of outstanding shares + diluted shares = 5,110,000 + 60,000 = 5,170,000 shares

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