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3 years ago

Describe at least three risks a company might face if it participates in global trade.

Business

2 answers:

Yuri [45]3 years ago

7 0

Answer:

Explanation: Because of the complexes presented by global trade, a company that participated in it could face the following risks:

1. Risk in the transport of products: If the company markets products abroad, transport is a determining risk factor since there is usually a greater distance and there could be several inconveniences in the delivery of the products.

2. Customer dissatisfaction with the merchandise delivered since it could not be liked because the characteristics presented vary from those presented previously.

3. Risk in the use of international trade laws: This is one of the factors in which greater care is due, since each country has a different regulation and if it is not known, infraction could be committed.

AleksAgata [21]3 years ago

6 0

1. ignorance of laws/statutes/regulations in each country and communication issues

2. vulnerability of being a new entry in global competition

3. off-site business, finding trustworthy trade partners whom you've never met

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Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-st

Katarina [22]

Answer:

MULTI-STEP

Sales Revenue 96,948.00

Sales commissions (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

Operating Income 7,680.00 

Rent revenue 17,678.00

Interest expense (2,308.00)

Non-Operating 15,370.00

Earning Before Taxes 23,050.00

Income Tax (9,518.00)

Net Income 13,532.00

Shares 40,550

EPS 0.33

ONE-STEP

Sales Revenue 96,948.00

Sales commissiones (8,428.00)

Net Sales 88,520.00

COGS (61,018.00)

Gross Profit 27,502.00

Rent Revenue 17,678.00

Depreciation (11,336.00)

Delivery Expense (3,138.00)

Salaries expense (5,348.00)

Interest expense (2,308.00)

EBT 23,050.00

Income Tax (9,518.00)

Net Income 13,532.00

Explanation:

The multi-steps calcualte the operating income and the non-operating income (from other activities and interest which aren't directly linked to the main activity of the company) While the one step just calcualte directly through earnings before taxes after solving gross profit.

6 0

3 years ago

Read 2 more answers

Scenario

aalyn [17]

Answer:

GBI

a. Journal Entries

Feb. 2

Debit Supplies Expense $800

Credit Payables-Misc. account $800

To record the purchase of supplies on account.

Feb. 4

Debit Accounts Payable $800

Credit CAsh $800

To record the payment on account.

b. The resulting document numbers are:

FI document number 1: __________ 100001

FI document number 2: __________ 100002

Explanation:

The journal entries are made to initially record the transactions in the books of GBI. Journal entries identify the accounts involved in every transaction. They add some brief narrations of the transaction.

4 0

3 years ago

The net present value (NPV) method estimates how much a potential project will contribute to

lapo4ka [179]

This answer requires that we fill in the blanks

The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealth
The larger the NPV, the more value the project adds; and added value means a higher stock price.
The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC
When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project.
When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.

What is the NPV?

In order to get the NPV we have to make the following calculations for the projects A and B.

This is calculated as

Project A

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= $355. 237

For the project B

We would have to perform similar calculation

Hence we would have

-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴

= 378.98

From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.