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gayaneshka [121]
3 years ago
11

By shutting​ down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

sly earned profits. C. stops receiving revenue but continues to pay variable costs. D. avoids its sunk costs as well as its variable costs. g
Business
1 answer:
wel3 years ago
4 0

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

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Please determine which economic feature is described by the statements below. A __________ occurs as the result of a significant
Dafna11 [192]

Answer: Recession; Depression; Peak ; Trough

Explanation:

The business cycle is the short-term movement of the economy as it goes in and out of recession.

A recession is the significant decline in the national output. Die to recession, there are less consumption by consumers and this negatively affects the national output.

A depression is a lengthy and deep decline in the output of an economy. When there's a long time contractions in economic activities, depression has taken place.

A peak is the highest point of output before the start of a recession. It is when growth and reached its maximum rate in an economy.

Trough is the lowest point of output when there is a recession. It is the lowest point when there's a decline in economic activities.

4 0
3 years ago
Read 2 more answers
Union Local School District has bonds outstanding with a coupon rate of 4.9 percent paid semiannually and 20 years to maturity.
RUDIKE [14]

Answer:

Ans. Price of the bond is $9,250.57

Explanation:

Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)

Coupon=10000*(4.9%/2)= $245

To turn the annaul YTM to semi-annual, we have to use the following equation

YTM(semi-annual)=(1+YTM)^{\frac{1}{2} } -1

YTM(semi-annual)=(1+0.056)^{\frac{1}{2} } -1=0.0276

After all this, we are ready to find the price, here is the math of this.

Price=\frac{245((1+0.0276)^{39}-1) }{0.0276(1+0.0276)^{39} } +\frac{(245+10000)}{(1+0.0276)^{40} } =9250.57

Best of luck.

4 0
3 years ago
Sunland Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $31
Alinara [238K]

Answer: $15,500

Explanation:

First we calculate the estimated Uncollecteble debt,

= 6% of 310,000

= 0.06 (310,000)

= $18,600

We will then subtract the existing $3,100 to find out how much we will send to the Bad Debt Expense account because the amount already in the account needs to be included in the $18,600.

= 18,600 - 3,100

= $15,500

We will therefore Debit the Bad Debt Expense account with $15,500 and Credit the Allowance for Doubtful Accounts with the same amount.

If you need any clarification do react or comment.

5 0
3 years ago
Read 2 more answers
Kathy has $50,000 to invest today and would like to determine whether it is realistic for her to achieve her goal of buying a ho
Tresset [83]

Answer:

So she must achieve about 11.61 %

Explanation:

Amount invest by Kathy = $50000

She wanted to buy a home for $150000

Time of investment = 10 years

We have to find the return which she received

Let she receives x return

So according to question 50000\times (1+x)^{10}=150000

(1+x)^{10}=3

(1+x)=3^{0.1}

(1+x)=1.1161

x=0.1161=11.61%

So she must achieve about 11.61 %

4 0
3 years ago
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Blababa [14]

Answer:

The first part of the question is missing:

"We all learn values from sources such as family, religion, and school. Why might these..."

To be honest, most of the time business decisions are not clean cut ethical or unethical, even if you are not doing anything wrong or illegal. When you are doing business you will try to make the largest possible profit and money doesn't just appear from no where, if you earn money, you will be taking it away from someone else. In the best case scenario, you will be giving that customer a higher perceived value than the cost of your product or service, so everyone wins.

But many times, not everyone wins. E.g. you manage a construction company and you will bid for a project, hopefully you will win and make money, but others will lose. Empathy is good for marketing, but very bad for finances.

When thousands of jobs are replaced not by Chinese workers, but instead by computers and robots, it's just bad luck for the unemployed. When large stores like Sears go bankrupt while Amazon surges, good for Amazon, bad for Sears.

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3 years ago
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