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3 years ago

Firms prefer FDI to licensing because FDI_____.

Business

1 answer:

Neko [114]3 years ago

5 0

Answer:

B) provides the firm with direct ownership to its foreign assets

Explanation:

When a multinational enterprise (MNE) is considering investing in foreign country they usually decide to do it through foreign direct investment (FDI). They do this because FDI ensures that the MNE is the direct owner of the assets and can freely decide what to do with them.

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Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and

Tamiku [17]

Answer: D. $40,175

Explanation:

The balance in the Capital account reported on the Statement of Owner's Equity will include the Capital contributions of Andrea Apple to the business as well as the Net income from operations also known as Retained Earnings.

The Net Income for the month will be revenue less expenses.

Revenue

$5,700 cash and $2,750 on account for services provided in January.

Revenue is therefore,

= 5,700 + 2,750

= $8,450

Expenses

Expenses include the rent paid of $1,500 and the $275 paid for January Utilities.

= 1,500 + 275

= $1,775

Net Income = Revenue - Expenses

Net Income = 8,450 - 1,775

Net Income = $6,675

The Capital that Mr. Apple brought into the business refers to anything he contributed to the business whether in cash or otherwise.

The Capital therefore is,

- The $13,500 cash and the $20,000 worth of equipment.

The Capital Mr. Apple brought into the business is therefore,

= 13,500 + 20,000

= $33,500

The balance on the capital account will therefore be,

= Capital + Net Income

= 33,500 + 6,675

= $40,175

Option D. is correct.

3 0

3 years ago

At year end, Rebos Company's financial statements showed sales of $820 million, net income of $425 million, total assets of

Dafna11 [192]

Answer:

total sales $820 million

net income $425 million

total assets $750 million

total liabilities $735

1.2 million outstanding common stocks

an offer was made to buy their assets at $742.5 million

<u>company's book value per share:</u>

= (total assets - total liabilities) / total number of outstanding common stocks

= ($750,000,000 - $735,000,000) / 1,200,000 = $12.50 per stock

<u>company's liquidation value per share:</u>

= (total offer - total liabilities) / total number of outstanding common stocks

= ($742,500,000 - $735,000,000) / 1,200,000 = $6.25 per stock

4 0

3 years ago

Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership in

creativ13 [48]

Answer: Capital gain = $10,000 ; Ordinary income = $25,000

Explanation:

Here is the complete question:

The PLM Partnership balance sheet includes the following assets on December 31 of the current year:

Basis FMV

Cash $230,000 $230,000

Accounts receivable 0 75000

Land 70,000 100,000

Total $300,000 $405,000

Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership interest to Emma for $135,000 cash, how much capital gain and ordinary income must Pamela recognize from the sale?

The following can be calculated based on the question above:

Pamela's share of the unrealized receivables will be the ordinary income which will be the unrealized receivables of $75000 which is then multiplied by 1/3 which is the interest. This will be:

Ordinary income = 1/3 × $75,00

= $25,000

The capital gain will be the difference that occurs between total gain and ordinary income.

Total gain difference

= $135,000 - $100,000

= $35,000

Ordinary Income = $25,000

Capital gain = $35,000 - $25,000

= $10,000

5 0

3 years ago

Lapping is best described as the process of________.

Mamont248 [21]

Answer:

b. applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts is the correct answer.

Explanation:

Lapping is best described as the process of applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.

Lapping is an illegal mode of allotting one consumer's cash to another consumer's account.

Lapping usually occurs in smaller businesses where a single person manages payment receipts and consumer billing.

Companies can stop and check lapping through conducting regular inspections of payment receipts and also by dividing cashier and billing tasks.

5 0

3 years ago

How does the dynamic model of aggregate supply and aggregate demand explain inflation? A. by showing that if total spending in

boyakko [2]

Answer:

The correct answer is option A.

Explanation:

The dynamic model of aggregate supply and aggregate demand shows that if an economy the total spending in the economy increases faster than total production, there will be a shortage. This shortage will cause the price level to increase and will ultimately lead to inflation.

When the increase in aggregate demand is greater than the increase in aggregate supply, it will create a shortage in the economy. The demand for goods and services will be more than the supply of goods and services. This will cause the price level to increase.

4 0

3 years ago