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3 years ago

2. How does a command economy differ from a market economy?

1 answer:

7 0

I'm not sure if the answer is supposed to be multiple choice but In a command economy the government decides how resources are used and what goods and service are produced. In a market individuals make the decisions about how resources are used and what gods and services to provide.

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Anderson Company acquires Thompson Company by paying $30 million in cash. The fair value of the identifiable assets acquired is

bonufazy [111]

Answer:

The fair value of the assets of the identifiable assets of Thompson company are $38 million and the fair value of identifiable liabilities is $6 million. So if we were to find the value of Thompson company just on the basis of identifiable assets and identifiable liabilities we would subtract the identifiable liabilities from the identifiable assets.

38-6= $32 million.

This means that on the basis of Identifiable assets and identifiable liabilities the value of Thompson company is $32 million but they Anderson Company $ 30 million for the company which means that the company has a negative goodwill. The negative good will is the price paid - the fair value.

30 million - 32 million = -2 million

This means that Anderson Company will record -2 million as negative goodwill and this implies a bargain purchase which means Anderson company will record this 2 million as a gain on their income statement.

Explanation:

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3 years ago

Think of a business idea that offers opportunity for customer credit. Assuming that you want to adopt this idea, what criteria w

mezya [45]

Answer:

an example for a company that offers back customers credit is Jimmy Johns, they have online rewards that you can sign up with you or phone number or online to earn points for your meals. When you sign up they promote you to go buy a sandwich for your first free sandwich, after that every time you come back and buy something you will be racking up points for free things like sandwiches, chips, cookies, pickles, and drinks.They also have special offers like on your birthday you get a free sub (and after you sign up). If I wanted to do something similar with my business I make would make a rewards systems where you earn points for discounts.

Explanation:

Identify a business idea with which you can proceed. For example, you start a business that designs and creates landscaping for customers (front garden space, back patio, and so on).

This type of business provides opportunity for consumer credit, as most people would not want to pay a huge amount upfront in cash or even through credit cards.

Since the only other way is to offer credit facility, you will have to make a list of questions. You will then have to research the customer’s credit worthiness.

Check for the customer’s credit rating with the credit- and information-management companies, such as TransUnion or Equifax.

Check for the customers’ current financial positions. You can do so by finding out whether they have a secure job or a well-performing business, number of earning members in the family, and so on.

Depending on the information you acquire, you may decide either to offer complete credit, with a relatively shorter credit period, or only offer a certain percentage of credit spread across a wider credit period.

7 0

3 years ago

The rapid spread of brand communities has been one of the major impacts of social media. the harley davidson owners group is one

Bingel [31]

These brand communities are effective because they provide a community for people belong to to feel part of things larger than themselves. They then help support the brand by sharing it with others who have similar interests and form an identity.

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4 years ago

According to the textbook, globalization involves international exchange. included in this exchange is trade in goods and servic

Bogdan [553]

I think it might be C, I'm not sure but I think it is.

Hope this helped. Have a great day! :D

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3 years ago

The following expenditures relating to plant assets were made by Prather Company during the first 2 months of 2020. Opposite eac

hammer [34]

Answer: Please refer to Explanation

Explanation:

1.Paid $5,000 of accrued taxes at time plant site was acquired.

LAND ACCOUNT because it is to be capitalized as it was part of the Acquisition Cost.

2.Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.

EQUIPMENT ACCOUNT as it is part of Acquisition Cost.

3.Paid $850 sales taxes on new delivery truck.

EQUIPMENT ACCOUNT as it is again part of Acquisition Cost.

4.Paid $17,500 for parking lots and driveways on new plant site.

LAND IMPROVEMENT ACCOUNT

5.Paid $250 to have company name and advertising slogan painted on new delivery truck.

EQUIPMENT ACCOUNT as it is a cost of setting the PPE up.

6.Paid $8,000 for installation of new factory machinery.

EQUIPMENT ACCOUNT as this expense is again part of setting the equipment up.

7.Paid $900 for one-year accident insurance policy on new delivery truck.

PREPAID INSURANCE because this is a periodic cost and those are not capitalized as they provide only a short term benefit.

8.Paid $75 motor vehicle license fee on the new truck.

LICENSE EXPENSE because it is also a period cost.

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3 years ago