Answer:
This is very simple, they should start billing their clients right away.
You don't have to bill your clients for the full legal expenses, but they for sure need to start making some money.
It is very normal that new businesses don't get enough revenue to cover their operation expenses right away. Even for big corporations, like Amazon and FB, it may take years to reach the break even point.
When you open a business you have to keep some money as reserve to cover some expenses for at least a few months.
Answer:
The correct answer is B)$3600 U.
Explanation:
The labor quantity variance is difference between actual hours consumed to produce the product and standard hour that should be taken to produce the product. The detail calculation are given below.
labor quantity variance= Standard rate (Standard quantity - actual quantity)
= 18 (4,000-4,200)
= $ 3,600 un-favorable
Labor quantity variance is un-favorable. Which means more labor cost due to more labor hour comsumed.
Answer:
D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.
Explanation:
As with the threat of takeover, there comes the risk of losing control, power, monetary benefits, the stockholder's tend to agree with managers, and the manager's tend to agree with stockholders.
As both aims for no takeover of the company, both work in for each other, agreeing to the suggestions placed.
There is no dis-regard to any of the suggestions paid by any of the party. This threat actually creates moral harmony and unity among stakeholders and management.
Therefore, correct answer is:
D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.
Answer:
<u>Financial reward</u> is not a typical challenge
Explanation: