When an industry is a natural monopoly:

If property rights are not well enforced, all of the following are likely to occur except;_________

aleksandrvk [35]

Answer:

If property rights are not well enforced, all of the following are likely to occur except;_________

A. a significant number of people will be willing to risk their funds by investing them in local businesses.

Explanation:

Other options are likely to occur, except option A. Investors cannot risk their capital investing in the local economy. This is the fate of an economy where property rights are not protected. This also underlines the need for each government to ensure that property rights are recognized and legally protected.

8 0

2 years ago

How physical asset valuation (PAV) and research and

stellarik [79]

Answer:

We'll take this one after the other.

A. First Physical Asset Valuation (PAV) refers to the act of writing up or writing down the carrying value of an organisations assets in its balance sheet.

In simple terms, it refers to increasing upwards or downwards the value of an organisations asset in its balance sheet.

When assets are written down, the following are likely to occur:

Critical changes to an organization’s business model or strategy, such as termination of the business and loss of a regulatory licence;

A significant reduction in the cash flow or bottom line of the business;

when the long term growth rates, interest rates or other financial factors such as prices or value of currencies, upon which a business valuation based decline, this impacts the valuation of an asset negatively.

B. Research and Development (R&D)

R&D refers to all the studies, scientific investigations and experiments carried out to enable the discovery and creation of a new or innovative product or service that is more efficient and effective.

The reason there is a risk associated with R&D is that there are usually many elements of uncertainty.

The ideas being tested are usually novel and have not been tried before.

Some of the risks associated with R&D are:

the possibility that the new product will fail in the market;

a new product or service that is does not work

the possibility of cost creep. That is a situation where the cost of the R&D outweighs the potential profit from the product or service.

Cheers!

6 0

2 years ago

E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8

coldgirl [10]

Answer:

A. Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

B.Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital $5,692,500

Explanation:

(a) Preparation of the journal entry to record the original issuance of the convertible debentures

Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

($10,000,000*8/100=$800,000)

(Being issue of share on convertible debenture)

b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method

Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital$5,692,500

($3,000,000+$2,700,000-$7,500)

(Being maintain the record of outstanding conversation of debenture)

Calculation for for BONDS CONVERTED

First step is to calculate the amortization for 2013

Amortization for 2013=$10,000,000/20

Amortization for 2013=$500,000

Second step is to calculate the amortization for 2014

Amortization for 2014=$10,000,000/20

Amortization for 2014=$500,000

Third step is to Calculate the premium on bonds payable

Premium on bonds payable=$10,000,000−($500,000+$500,000)

Premium on bonds payable=$9,000,000

Now let calculate the bonds converted

Bonds converted=$9,000,000×30/100

Bonds converted=$2,700,000

Calculation for COMMON STOCK

First step is to calculate the number of bonds

Number of bonds=$10,000,000/1000

Number of bonds=10,000

Second step is to calculate Price for the bond

Price for the bond=10,000×5

Price for the bond=50,000

Third step is to Calculate for Stock Split

Stock Split=50,000/2

Stock Split=25,000

Now let calculate the common stock

Common stock=25,000×30/100

Common stock=7,500

Calculation for BONDS PAYABLE

Bonds Payable=10,000,000×30/100

Bonds Payable=3,000,000

6 0

2 years ago

Read 2 more answers

If the same number of units of good Y must be given up as each successive unit of good X is produced, then the PPF for these two

andrey2020 [161]

Answer:

PPF : Downward Sloping Straight Line

Explanation:

PPF is the locus of product combinations that an economy can produce, given resources & technology.

It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.

Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.

∆ Good sacrifised / ∆ Good gained

If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line

Eg : Good1 Good2 MOC [∆Good2/∆Good1]

0 20 _

10 10 -10/10 = -1 (10-20)/(10-0)

20 0 -10/10 = -1 (0-10)(/20-10)

So , same (1) good 2 is sacrifised to attain a good 1 each time.

However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.

5 0

3 years ago

If a customer credit score is within 2 points of the minimum of what the business will accept, should the business extend credit

Eduardwww [97]

Answer:

Explanation:

I wouldn't.

The business has drawn a rigid line in the sand. It has to maintain its standard. I might try and make a deal with the customer. "Come up with x% for a down payment."

If the score is high (like over 750), I would likely stretch my standard. 750 is a pretty high score and if you have that kind of a number, you know how to pay things back.

5 0

2 years ago