The mutual benefit that the American Clothing Company derives by partnering with a Chinese Manufacturer comes because <u>E. It is</u> an example of counter-trading ...
<h3>What is Counter-trading?</h3>
Counter-trading occurs when goods or services are exchanged for other goods or services rather than for hard currency. It is a reciprocal form of international trade in which, for example, the American Clothing Company brings in its technology while the Chinese Manufacturer provides cheap labor and other resources.
<h3>Answer Options:</h3>
A. It is a strategic alliance in which two countries share the risks and rewards of starting a new enterprise together in a foreign country.
B. It is a wholly owned subsidiary in which a foreign subsidiary is totally owned and controlled by an organization.
C. It is a greenfield venture in which owning the organization has been built from scratch.
D. It is an example of a franchise in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services.
E. It is an example of counter-trading in which the country is bartering for goods.
Thus, the counter-trade between these companies is mutually beneficial because of <u>Option E</u>.
Learn more about counter-trading at brainly.com/question/14659049
Automatic stabilizers are government programs that <span>exaggerate the ups and downs in aggregate demand without legislative action. By reducing the ups and downs to help the demand and supply of products, the government tries to create balance within the economy. Automatic stabilizers work so that the government doesn't have to intervene each time something is needed to help the demand.</span>
Whenever supply is higher than demand prices will drop or lower
Answer:
The ROE was 23.33%
Explanation:
To calculate the ROE, first we have to calculate the next:
1) Total asset turnover=Sales/Total assets
=(325000/250,000)=1.3
2) Debt to total asset=Debt/Total assets
Hence debt=0.675*$250,000=$168,750
3) Total assets=Total liabilities+Total equity
Total equity=($250,000-$168,750)=$81,250
4) Equity multiplier=Total assets/Equity
=$250,000/$81,250=3.07(Approx)
5) Profit margin=Net income/Sales
=(19000/325000)=5.84615385%(Approx)
Finally we have to calculate the ROE
ROE=Profit margin*Total asset turnover*Equity multiplier
=5.84615385*3.07*1.3
= 23.33% Approx
Answer:
a. $265,000
Explanation:
Process costing is one of method to assign cost to manufactured unit. This method is most commonly used for identical units produced.
Terada Corporation also uses process costing system. In April $241,000 units were transferred out of the department. To identify the total cost under weighted average method we can add up beginning work in process and units transferred out. We get $265,000 if we add up beginning work in process inventory and cost of units transferred out from the department.
= $24,000 + $241,000
= $265,000.
