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3 years ago

Typically, when a business is owed money by a company that files for bankruptcy, the business will...

1 answer:

4 0

When a company has filed bankruptcy and owes money to another business, the business will get very little money back. This will apply when the business is considered to be an unsecured creditor. However, if the business is a secured creditor they will usually receive all of the money owed to them. It will depend on the type of creditor that they are.

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List and explain ten factors to consider in preparing family income

aniked [119]

Answer:

1. Availability of Money:

The expenditure of a family depends upon the availability of money or total income of the family. It can afford to spend under various needs. In lower income group, families expenditure is more on food. Higher income group families spend more on recreation, education and luxuries etc.

2. The size and the composition of the family:

Expenditure depends upon the size and composition of the family. The size of the family means the number of adults and children. The more the mouths to eat the expenditure is more on food, clothing and shelter. With the growth of children, more will be spent on education and clothing. More will be spent towards transportation when the members go out of the house for work or study.

Composition of the family means the number of adults and children in the family. It also includes the number of males, females and old persons. For old persons, extra expenditure will be incurred towards health and medical expenses.

3. Stages of family life cycle:

Family life cycle plays an important role in spending money. At the beginning stage, most part of the family income is spent towards the establishment expenditure as a newly married couple starts their family life. In the expanding stage families need money for the children, their food, dress, education etc. Some families in the expanding stage spend more on purchasing durable household goods, furniture etc. In the contracting stage major expenditure is on wedding celebration of their children. During this stage, the family income is gradually reduced. So the expenditure should be cut short.

4. Occupation of the family members:

Sometimes expenditure of the family depends upon the occupation of the family members. In certain jobs, there are special benefits like free quarters, educational facilities for children, health and medical allowance, travelling allowance etc.

5. The needs and objectives of the family:

Expenditure will be done according to the needs and objectives of the family. For example, a family where young children are there, more will be spent for nutritious foods. Old people require health and medical expenses. Working women spend money for the servants as they do not find time to do the household work.

6. Resources:

Both human and material resources can make significant changes in the pattern of expenditure of a family. The abilities, skill, knowledge, interest, attitude and habits of the members of the family can be utilized for various purposes as supplementary income.

7. Locality of the family:

In rural areas more will be spent on food. But in urban areas the expenditure is more on education, recreation, transportation, accommodation etc.

8. Socio-economic status of the family:

The socio-economic status of the family is determined by its income, education level and occupation of the members. The higher the socio-economic status the expenditure will be more on interior decoration, higher education, club membership, accommodation, recreation etc. The total expenditure depends on the standard of living the family maintains.

9. Social and religious traditions:

Some families accept old and traditional values. So they spend more on marriages and religious festival.

10. Personal choice:

Expenditure depends upon the personal choice. For example, one person may have a liking for expensive perfumes and jewellery while another may have simple tastes. Expenditure is also affected by the measures taken in the family to make provision for the future like house building, higher education of children etc. The home-maker will be able to manage with her income by cutting out unnecessary and extravagant expenditure. “One must cut one’s coat according to his cloth.”

This saying is rightly proved in home management. Balancing of income and expenditure is the best way of money management. Whatever the income may be, the efficient management of money is a requisite for a happy, successful and peaceful family life.

8 0

3 years ago

Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. Thi

Marina CMI [18]

Answer:

other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.

Explanation:

This question is incomplete. Please check the attached image for a complete question.

A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.

The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.

I hope my answer helps you

3 0

3 years ago

Lindsey holt owns stock in the galloway gems company. she knows in advance that the dividend on this stock is a $1.50 per share.

solniwko [45]

According to the given statement Lindsey holt purchased preferred stock.

The correct option is B.

<h3>What is the preferred stock?</h3>

Preferred stock, which is a component of share capital and is commonly referred to as a combination indicator, is an asset that has any combination of features that common shares does not, such as those of an equity and a promissory note.

<h3>How do preferred stocks work?</h3>

securities with a repaired par value that pays dividends at a fixed rate, generally based on a proportion of the par value. The market price of preferred shares, like bonds, is dependent on changes in interest rates. When interest rates rise, the value of the preferred stock falls.

To know more about preferred stock visit:

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I understand that the question you are looking for is:

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share and that it is a promised or contractual and constant dividend . Given this, you know for sure that she purchased which type of stock?

A. Green chip

B. Preferred

C. Penny

D. Uncommon

E. Growth

4 0

1 year ago

One disadvantage of a functional structure is that it cannot be converted into an ambidextrous structure. frequently lacks effec

soldier1979 [14.2K]

Frequently lacks effective communication channels across departments. Communication between departments can be an issue in this structure.

8 0

3 years ago

Inferring Transactions from Financial Statements

denpristay [2]

Gap's cost of goods sold is $10,258 million and Cash paid to supplier is $10,447 million.

Let understand that Cost of good sold refers to amount of expenses incurred to produce the goods produced by a firm.

The formulae for deriving the Cost of Goods Sold is {Beginning Inventories + Purchases – Ending Inventories}.

Information given are Purchased inventories $10,392, Ending inventories $2,131 and Beginning inventories $1,997

Cost of goods sold = $1,997 + $10,392 - $2,131

Cost of goods sold = $10,258

In conclusion, the amount of Gap's cost of goods sold is $10,258

Let understand that Cash paid to accounts payable refers to net amount paid to supplier of goods.

The formulae for deriving the Cash paid to accounts payable is Beginning balance for 2015 + Purchases - Ending balance for 2015

Cash paid to accounts payable = $1,181 + $10,392 - $1,126

Cash paid to accounts payable = $10,447

In conclusion, the amount of Gap's Cash paid to supplier is $10,447

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6 0

2 years ago