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Cerrena [4.2K]
3 years ago
12

Which one of the following would not be considered an advantage of the corporate form of organization?a. Limited liability of ow

nersb. Separate legal existencec. Continuous lifed. Government regulation
Business
1 answer:
solmaris [256]3 years ago
5 0

Answer:

Disadvantage of Corporate Form of Organization:

d. Government regulation

Explanation:

In recent times, government regulation of businesses appears to be regarded as a disadvantage of the corporate form of organizations.  Governments intervene and regulate corporate entities whenever they fail to be self-regulatory.  But, the regulations may appear to be so much that the corporate form of organization now looks like a disadvantage.  Given the many corporate scandals, collapses, and misapplications of resources by corporate entities that have become the order of the day, government regulation is very important.  Without government regulation, many corporate bodies will not be acting in the public interest.  This is more so with public entity corporate organizations with diverse stakeholders and corporate managers who act as if they were running their own autonomous governments.

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Most economists believe that in the long run, changes in the money supply Group of answer choices affect nominal but not real va
Ymorist [56]

Answer:

affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.

Explanation:

This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:

MV = PQ

  • M = quantity of money
  • V = velocity of money
  • P = price level
  • Q = quantity of goods

Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:

  1. the velocity of money has to be constant (AND IT IS NOT CONSTANT)
  2. real output is independent on money supply (NOT TRUE)
  3. causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)

5 0
3 years ago
Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no ot
Oduvanchick [21]

Answer:

  • The complete present value calcuation is below.

  • The net present value of this project is: $77,930.58 (assuming a value for the sale of the business equal to the purchase price).

Explanation:

For this problem, the first and basic question is:

  • <em>Prepare a net present value calculation for this project. What is the net present value of this project?</em>

<em />

<h2>Solution</h2>

The net present value is equal to: the present value of the future cash flows less present value of the investements.

<u>1. Present value of the future cash flows:</u>

The discount factor is equal to 1 / [1 + (1 + r)ⁿ]

Where:

  • r = 5% = 0.05
  • n = the number of year

Year     Cash flow     Discount factor     Present value

1            $30,000       1/(1 + 0.05)             $30,000/1.05 = $28,571.43

2           $30,000       1/(1 + 0.05)²           $30,000/(1.05)² = $27,210.88

3           $30,000       1/(1 + 0.05)³           $30,000/(1.05)³ = $25,915.13

4           $30,000       1/(1 + 0.05)⁴           $30,000/(1.05)⁴ = $24,681.07

5           $30,000       1/(1 + 0.05)⁵           $30,000/(1.05)⁵ = $23,505.78

5           $240,000*   1/(1 + 0.05)⁵           $240,000/(1.05)⁵ = $188,046.28

*For the year 5 you must also consider the value of the business, which is unknow. You should have some information about it. Although unrealistic, at this stage we can just assume a value: let's say it is the same purchase price: $240,000. That is what the last line shows:

The discount the value of the value of the business is:

  • $240,000 / (1.05)⁵ = $188,046.28

The total present value of the future cash flows is the sum of the present values of all the cash flows:

$28,571.43 + $27,210.88 + $25,915.13 + $24,681.07 + $23,505.78 + $188,046.28 = $317,930.58

<u>2. Calculate the net present value:</u>

  • Net present value =

                     = Total present value of future cash flows - investment

  • Net present value = $317,930.58 - $240,000 = $77,930.58
5 0
2 years ago
In a properly designed internal accounting control system, the same employee should not be permitted to:
yawa3891 [41]
In a business world, segregation of duties is important to have a sound internal control.  The employee handing cash/check collection is prohibited from updating its customer's subsidiary ledger and recording of transactions in the books.  This will eliminate fraud and misappropriation of funds.  
8 0
3 years ago
A company issued 6%, 10-year bonds with a face amount of $90 million. The market yield for bonds of similar risk and maturity is
Leviafan [203]

Answer:

The bonds sold at: $122,106,600 dollars

Explanation:

We will calculate the present value of the coupon payment and the maturirty at market rate of 7%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C         2.7(90 millions x 6% / 2 payment per year)

time 20  10 years and 2 payment per year

discounted at market rate: 7% divide by 2 payment per year:  0.035

2.7 \times \frac{1-(1+0.035)^{-20} }{0.035} = PV\\

PV 76.3551

Then present value of maturity:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   90.00

time            10 years

rate             0.07

\frac{90}{(1 + 0.07)^{10} } = PV  

PV   45.75

PV coupon  $76.3551

PV maturity  $45.7514

Total  $122.1066

7 0
3 years ago
The Waverly Company has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should e
MA_775_DIABLO [31]

The question is incomplete. The complete question is as follows,

The Waverly Company has budgeted sales for the year as follows:

Quarter sales in unit

1=12,000

2=14,000

3=18,000

4=16,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter (in units) is:

a.17,500 units.

b.16,500 units.

c.15,000 units.

d.13,000 units.

Answer:

Production = 15000 Units

Option C is the correct answer

Explanation:

To calculate the scheduled production for the second quarter, we first need to find the opening and ending inventory for the third quarter. The ending inventory for each quarter will become the opening inventory for next quarter. It is mentioned in the question that the ending inventory in each quarter is equal to 25% of the next quarter's budgeted sales. Then,

Ending Inventory First Quarter = 0.25 * 14000  =  3500 units

Ending Inventory Second Quarter = 0.25 * 18000  =  4500 units

The production of units in second quarter can be calculated as follows,

Budgeted Sales  =  Opening Inventory + Production - Closing Inventory

14000 = 3500 + Production - 4500

14000 + 4500 - 3500 = Production

Production = 15000 Units

5 0
3 years ago
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