Answer: Companies in perfect competition do not usually apply "socially conscious" practices because their cost-benefit relationship does not justify it.
Generally, the administration of an oligopolistic company will carry out "socially conscious" practices, because this differentiation between the other companies would lead to higher than normal profits.
True, profits of a large corporation are taxed twice, once a corporate income and again as personal income of stockholders. This is because the corporation is taxed when they earn the profit but then the stockholders are taxed as it is paid out as income/earnings.
Answer:
$315,198
Explanation:
WACC = [ Equity / Total value ] * cost of equity + [ Debt / Total value ] * Cost of debt.
WACC = 11.5%
Exit multiple = Total cash outflow / Total cash inflow
Exit multiple = $120,000 / 36,000 = 3.3x
EBITDA of the company is $178,412.
Answer:
B. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.
Explanation:
As the barber is currently cutting hair for 50 clients per week and earns a profit. He is now considering expanding his operation in order to serve more clients. He should expand his business by considering the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. Marginal revenue and marginal cost has much importance here in order to make the decision. Marginal revenue is the profit which is obtained by selling one extra unit, here serving one more additional customer, whereas, the marginal cost is selling that one extra or additional unit/serving the customer. In this particular case, if the marginal revenues are greater than the marginal costs then he should definitely expand his operations, which means that move will bring more profits to his business.
Answer: An internal audit is being performed.
Explanation:
Internal Audit is a department or entity that provides structures, corporate organizations, and procedures for persons inside an organization with unbiased, objective assessments.
According to the Chartered Institute of Internal Auditors, the role of internal audit is to provide objective assurance that an organization's risk management, governance and internal control processes are operating effectively.
