1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maru [420]
3 years ago
7

Kurt leased a small building and converted it into a hockey supply shop. He had assumed that he could run a successful business

if he had enough money to get started. However, his business faces seasonal variations in sales. He now finds it difficult to meet the day-to-day expenses of the business. Which problem is Kurt's business facing?
a.competition

b.lack of startup capital

c.bureaucracy

d.inability to cope with growth

e.undercapitalization
Business
1 answer:
salantis [7]3 years ago
8 0

Answer:

The correct answer is letter "E": undercapitalization.

Explanation:

Undercapitalization refers to the situation in which an organization is unable to generate enough funds to cover its expenses. This leads to companies being unable to pay their creditors, thus, they have no other option but to request for loans to keep the business up and running. Small companies are frequently undercapitalized.

You might be interested in
Floors n’ More, Inc., hires Gordon to renovate Floors n’ Mores showroom. Gordon submits plans that Floors n’ More approves. Gord
gogolik [260]

Answer:

Yes Gordon can sue Floors n' Mores for the settlement of the contract keeping in mind that Gordon has made partial completion of the contract. Full payment would be determined based on the completion of the total work in line withe the plans submitted when the contract was signed

Explanation:

In order to understand the scenario in case if Gordon wants to sue Floors n Mores they can only be compensated for the amount of project completion in line to the expectations that matches to Floors n More.

For Example if 75% of the work is in line with the expectation of Floors N More then Gordon should be paid total amount payable multiply by 75%.

Usually in such cases if the contract is fulfilled to certain extent it is preferred to close the contract based on the %age of completion because major reconstruction, buying of fixtures and furniture was executed. Hence major risks and rewards were transferred to Floors n Mores.  

4 0
3 years ago
Economan has been infected by the free enterprise bug. He sets up a firm on extraterrestrial affairs. The rent of the building i
monitta

Answer:

There are two types of profit and costs in nay business, which are accounting costs/profit and the economic costs/profits.

Accounting costs include everything that is tangible or the monetary costs a firm pays, while the economic costs include the cost which is intangible(Opportunity costs) as well as tangible.

Here in this question, the profit of the firm therefore is,

a. From an accountant;s definition = 130000-(6000+42000+7000) = 75000.

b. From an economist's definition = 130000-(6000+42000+7000+65000+6000) = 4000.

Hope this helps you. Thankyou.

7 0
2 years ago
Read 2 more answers
When writing promotional messages for social media sites, how does the process change?
elixir [45]

Answer:

<u>The emphasis shifts to encouraging and participating in online conversations.</u>

Explanation:

The internet has revolutionized the way companies establish communication with consumers. In this scenario, there are social media, which are an important tool for an organization to implement its digital marketing strategy, which is increasingly popular in the business world, since it is a low-cost means of disseminating messages and content. High visibility, since most people today have access to social media.  There is also the measurement of accesses and results, which helps to align the strategy

Therefore, marketers must be analytical and accurate to achieve good results with digital marketing. Users of social media expect to have a deeper relationship with the company, as it is an easy and fast way to exchange messages, it is necessary that this relationship be prioritized in the development of promotional messages, they must present content that generates engagement and represents something meaningful to your target audience.

4 0
3 years ago
Explain errors are not detected by a trial balance ​
Paha777 [63]

Answer:

Errors not detected by a trial balance ​ are:

1. Posting to Wrong Account

2. Error of Amounts in Original Book

3. Compensating Errors

4. Errors of Principle

5. Errors of Omission

Explanation:

The Trial Balance does not provide absolute assurance of ledger account accuracy. It is just an evidence of the postings' arithmetical accuracy. Even though the amount of debits equals the amount of credits, there may be inaccuracies.

A trial balance will not reveal such errors, and they are:

1. Posting to Wrong Account: IF accidentally posted something to the wrong account, but it was on the right side, the Trial Balance agreement will not be affected. For example, if a $200 purchase from John was credited to Joshua instead of John. As a result, Trial Balance will miss such an error.

2. Error of Amounts in Original Book: The Trial Balance will come out appropriately if an invoice for $632 is filed in Sales Book as $623, because the debit and credit have been recorded as $623. The arithmetical precision is there, yet there is a flaw.

3. Compensating Errors: This occurs one mistake is offset by a similar mistake on the other side. These errors are cancelled if one account in the ledger is debited $500 less and another account in the ledger is credited $500 less.

4. Errors of Principle:  An errors of Principle is one that breaches the foundations of bookkeeping. Purchases of furniture, for example, are debited to the Purchase Account rather than the Furniture Account; wages paid for the erection of plant are debited to the Wages Account rather than the Plant Account; and the amount spent on a building extension is debited to the Repairs Account rather than the Building Account, and so on. These kind of errors do not alter the total debits and credits, but they do impair the bookkeeping principle.

5. Errors of Omission: There will be no effect on the Trial Balance if a transaction is completely omitted. An error of omission occurs when a transaction is fully unreported in both aspects, or when a transaction is documented in the books of primary entry but never entered in the ledger. For example, if a credit purchase is not recorded in the Purchase Day Book, it will not be posted to both the Purchase Account and the Supplier's Account. This error, on the other hand, will not cause Trial Balance to disagree.

7 0
3 years ago
Georgie has gross income of $5,000 from an activity that has been deemed to be a hobby by the IRS. Her expenses related to the a
Elina [12.6K]

Answer:

$5,000 Schedule A (Itemized Deductions)

Explanation:

Solution

We recall that:

George gas a gross income of =$5000

Property taxes =$3000

Operating expenses of =$1500

Deprecation expense of =$800

Now

Normally As per IRS, hobby expenses are normally subtracted up to the hobby income . hobby is pursued as enjoyment and not for making profits hence can not be termed as Profit and loss from business

Therefore George deductible expense for the year is $5,000 it would be taken from Schedule A (Itemized Deductions).

8 0
3 years ago
Other questions:
  • Select all that apply.
    7·1 answer
  • At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 918,000 Credit sales 31
    6·1 answer
  • [55 points] (public health) in 1972 a one-in-six random survey of the electoral roll | largely concerned with studying heart dis
    9·1 answer
  • Technological advancement creates unemployment in firms that shut down or labor that is laid off. Wealth in this case is a. ​Des
    12·1 answer
  • B2B markets differ from B2C markets because: Group of answer choices salespeople personally call on business customers to a far
    14·1 answer
  • The study of behavior in situations of interdependence is known as
    9·1 answer
  • Osage Corporation issued 3,350 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco
    13·1 answer
  • In what three ways does the government affect production of goods and services in the US economy?
    12·1 answer
  • A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 9.40%. (Do not round int
    6·1 answer
  • Explain project teams
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!