Answer: a. the purchase of a personal automobile by the owner using personal funds.
Explanation:
If the owner of a business purchases a car with their own funds, this does not impart equity or indeed any other portion of the business as this is a personal transaction that does not involve the business.
Purchasing a car for the owner's son with cash generated for the business will affect Equity by reducing it. Investment by owners will increase equity and a sale of goods will increase revenue which will affect equity via the net income.
Answer:
The management of ABTronics firm seeks to convince its employees of their stake in the prosperity of the firm. How can they best accomplish this?
There are various ways to accomplish such which involves;
Increase salary of their employees
Giving of bonus on those that work on excessive hours, festival bonus among others
Opening of more branches
Improve welfare packages in diverse means
Reduction of workload by employing more hands to engage in the job
Explanation:
Answer:
The correct answer is strategic business unit.
Explanation:
Strategic business unit refers to the set of activities carried out by a company for which a common and different strategy can be established from the rest of the company's activities. This strategy is autonomous from the rest, but it is not entirely independent since all the strategies of the different strategic business units are linked within the company's global plans.
Answer:
Goodwill = 25,000
Explanation:
Goodwill is an intangible asset, is the differential reflected in a consolidated balance sheet immediately after the business combination between the purchase price of a company and the fair market value of identifiable assets and liabilities. Goodwill is recorded when the purchase price is higher than the sum of the fair value of all identifiable tangible and intangible assets purchased in the acquisition and the liabilities assumed in the process.
In this case:
Goodwill = Purchse Price - Net assets fair value
Goodwill = 340,000 - 315,000
Goodwill = 25,000
The difference between the book value and fair value of the acquired company are adjustments to the amount presented in the consolidated balance sheet.
Increases in the price of the good measured on the horizontal axis will make the horizontal intercept *smaller in value* and make the budget line *steeper*.