Answer: d)Firms have to pay more to attract inputs, as these inputs have to share the risk.
Explanation: When the market system tries to put restriction on the business risk to owner and other investors , the firms have to give more payment to attract them to market business.
The chances of risk have have to be shared by both the parties so the owners or investors are going to indulge in the business when they gain some benefit e.g.-more payment.
Other options are incorrect because entrepreneurship will not be encouraged through this process. Incomes will not be distributed equally and neither the prudent risk management will be aimed.Thus, the correct option is option(d).
Answer:
Explanation:
30 - 21 = 9 years
r = 3% inflation
FV = 25,000
We know that FV = PV(1+r)^n
25,000 = PV(1+0.03)^9
PV = 25,000/ 1.3047731
PV = 19,160.42, this is how much it worth today
Answer:
The correct option is B, bounded rationality
Explanation:
An ethical dilemma occurs when there is a conflict between one's interest and the interest of the organization leaving one with making choices between serving in the interest one the company or feathering one's nest.
Groupthink implies giving credence to the decision of a group over individual's thinking and creativity.
Bounded rationality is theme that was introduced by Herbert Simon which refers to the fact that making a rational decision is sometimes limited to the information at one's disposal as well as one's mental prowess.
Answer:
The ending total asset is $3,800
Explanation:
Lisa Inc raises $3,000 of shareholders’ equity. This movement increase the assets, because the $3,000 increase in the shareholders’ equity will affect the asset
Lisa Inc purchases a building worth $300 for cash. Won´t modifies the assets , decrease cash but increase buildings
Lisa Inc takes out a loan for $500 and receives cash. Increase assets (cash) , increase Liabilities (Accounts Payable)
Lisa Inc purchases $300 of inventories, the supplier gives her credit. Increase assets (inventory) , increase Liabilities (Notes Payable)
Asset= $3,000+$500+$300=$3,800
Answer:
c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.
Explanation:
As for the information provided,
outstanding balance of accounts receivables = $344,000
Also that the uncollectible balance of accounts receivables is estimated = 5% of outstanding balance.
Therefore, balance at year end of allowance for uncollectible shall be = $344,000 
5% = $17,200
Provided existing balance of allowance = $2,600
Thus, entry shall be for amounting = $17,200 - $2,600 = $14,600.
