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shusha [124]
3 years ago
11

An asset is purchased by a calendar or fiscal year firm for $60,000 on October 1, 1997. The asset has a useful life of four year

s and salvage value of $10,000. Depreciation for 1998 under the double declining balance method is $26,250.1. True2. False
Business
1 answer:
emmasim [6.3K]3 years ago
5 0

Answer:

1. True

Explanation:

The computation of the depreciation for 1998  under the double declining balance method is shown below:

First we have to find the depreciation rate which is

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $60,000, so the depreciation is $7,500 after applying the 50% depreciation rate  and the 3 months

And, in year 2, the depreciation expense is

= ($60,000 - $7,500) × 50%

= $26,250

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Answer:

It is Franchising (B)

Explanation:

Option (A) False.

Licensing is  contractual  transaction  where  the  company (licensor) offers  some  proprietary  assets   to  foreign company (licensee) in exchange for royalty fees .

Licensing  is considered a low involvement and low-control entry strategy, since it does not necessarily entail equity participation, and because control over operations and strategy is granted to the licensee in exchange for a lump-sum payment,   and  a  commitment  to  abide  by  any  terms  set out  in  the  licensing  contract.

Option (B) True.

A franchise agreement is a contractual arrangement between two independent firms, whereby the franchisee pays the  franchisor  for  the  right  to  sell  the  franchisor's  product  and/or  the  right  to  use  the  franchisor's  trademark  at  a given place and for a certain period  of time.

Franchisors  typically   offer   managerial  assistance and exercises  substantial  control  over the franchisee.

Option (C) False

Exporting- here the  company  becomes  directly  involved  in  marketing  its  products  in  foreign  markets.  Although  the associated cost  and  risks  are  greater,  so are the profits too ,all things being equal.

Option (D) False

This is when two or more independent companies create a separate entity but still still maintain their former entity . As a penetration strategy, it does not only reduced risks but also decreases individual involvement.

It can also be used to eliminate risk of entry barriers for a new entrant in an existing market.

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3 years ago
Stroome, the focus on the opening feature for Chapter 6, has developed a new Web-based service for editing and remixing video. S
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A freemium pricing model is based on offering a service with a few basic features for free, while also offering a premium service with enhanced features for a fee.

White labeling happens when a company's product or service is sold by another retailer using its own brand instead of the original producer's brand.

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Answer:

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