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:
b. personal taxes increase the value of using corporate debt.
Explanation:
Since the interest on debt funding is excluded from corporate tax, the leverage may have a beneficial impact in increasing the valuation of a company. The value of the leveraged firm will also rise due to debt as compared with the value of the unlevered firm, since the unlevered firm does not benefit from the benefits of tax savings. When the debt increases, leverage gains increasing.
Hence, the correct option is b.
Answer:
both
Explanation:
there is not enough supply to fit the demand meaning said oil is more valuable so it is a good time to drill for more because it is more expensive and you know you can charge more because people will have no choice but to purchase it at your price until supply exceeds demand which will make it less valuable until the demand once again is higher than supply which will make it more valuable again.
Answer:
See below
Explanation:
Business refers to the practice of producing or purchasing goods and services for sale to make a profit. It is the act of engaging in commercial activities of buying and selling products and services for profits.
Business entails individuals and companies' activities of supplying desired products and services to customers with profit motives. A businessperson identifies a need in the community. He or she sells to the community goods or services that satisfy that need a higher price to make a profit.