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
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.

You might be interested in
Do you know why sustainable business is important?
guajiro [1.7K]

Answer:

In short, sustainability in business refers to the effect that companies have on the environment or society. A sustainable business strategy aims to positively impact one or both of those areas, thereby helping address some of the world's most pressing problems, such as climate change and income inequality.

Explanation:

yeah

8 0
3 years ago
According to the demand-pull theory, inflation is caused by:
Aliun [14]

Answer:

Understanding Demand-Pull Inflation

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Explanation:

hope it helps you

6 0
2 years ago
Capico is a pharmaceutical company. The company has its factory outlets in various countries and is currently not planning on an
Harman [31]

Capico will need credit for Research and development as it should research on the new drug and also study about its competitors

6 0
3 years ago
Read 2 more answers
if you followed the suggestions of robert m. mcmath, which of these provides the best advice for a marketer for colgate, when la
dimaraw [331]

Robert M. McMath, would be best  for a marketer like Colgate to launch a new consumer product like toothpaste Study past toothpaste product failures and learn from them.

What is Product launching?
A product launch involves multiple teams, including  sales teams, customer support teams, product teams, product marketing, event management, and even managers. Each team aligns and collaborates to maximize go-to-market potential, building anticipation, interest, brand awareness and momentum in the process. Some product launches are more memorable and successful than others. For example, when Apple releases a new iPhone, it circulates several press releases and articles before unveiling the new design at its annual conference. This creates so much excitement and hype that potential users line up at retail outlets overnight to get their hands on the device.

To learn more about Product launching
brainly.com/question/27960275
#SPJ4

5 0
1 year ago
If the financial statements include an income statement and a balance sheet but exclude the statement of cash flows, the auditor
USPshnik [31]

Answer:

The auditor should issue a qualified report for the departure from generally accepted accounting principles.

Explanation:

A qualified opinion can be understood as the statement given by an auditor in conjunction with a corporation's audited financial statements in an auditor's report. It was an auditor's judgement that implies a firm's earnings reporting was restricted in scope or that there was a substantial fault with the implementation of generally accepted accounting standards (GAAP)—but hardly one that was widespread.

3 0
3 years ago
Other questions:
  • The contingency theory of leadership assumed that there are two kinds of leaders: ________ and ________ leaders. future-oriented
    15·1 answer
  • Patricia deposited $350 in a savings account with two percent simple interest. If she keeps it in the account for one year, how
    15·1 answer
  • Salty Snacks Inc, markets a fish-shaped cracker. When Tasty Tidbits Inc. begins to sell a similar product, Salty files a suit ag
    12·1 answer
  • The three basic questions in Economics are all of these, except _____________________.
    7·2 answers
  • How do consumer expectations affect the demand for a product?
    7·2 answers
  • PB4.
    11·1 answer
  • When we watch a production of Hamlet, we know that the actors playing Gertrude and Hamlet will not actually die after being pois
    5·1 answer
  • People who use white hat SEO tactics try to trick the search engine into thinking a website has high-quality content, when in fa
    8·1 answer
  • Innovation and enterprise can help to develop new and niche markets - True or False?
    15·1 answer
  • Income which accrue or arise outside india and also received outside india is taxable in case of.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!