Answer:
a. Is JV a variable interest entity (VIE)?
Yes, JV should be considered a variable interest entity. Basically both AutoCo and ElectricCo share JV's board, but ElectricCo didn't have the money to start a company or even be part of a joint venture. ElectricCo's equity is financed by AutoCo, so ElectricCo has basically no no equity at risk. Even the debt acquired by JV is backed by AutoCo, but AutoCo does not control JV on its own.
Basically ElectricCo's contribution is technology, and AutoCo provides everything else, but both control the company with one side (ElectricCo) not having enough money to invest but doing so through financing.
b. Which entity, if any, should consolidate JV?
AutoCo must include JV in its consolidated balance sheet since it owns 60% of the company and the products manufactured by JV are sold under AutoCo's brand.
Answer:
<u>$4387 b</u> but Real Income GDP will be <u>$4500 b</u> ..
Explanation:
This nominal GDP signifies the worth of all those ultimate assets including assistance that economics performed throughout a provided year. The aforementioned is calibrated by implementing the uses that remain contemporary throughout the year while which that output is generated. Meanwhile, in economics, a nominal worth is formulated into monetary sessions.
This is essential to identify amidst the nominal and real value of a nation's internal production including profit. Real GDP estimates a specific amount of production. An expansion in real production signifies that AD has grown quicker than this rate of inflation moreover this prosperity is encountering assertive germination. So according to the above eplaination the answer is mentioned below.
AS/AD model – If an aforementioned administration maintains equanimity into Year 5 including a Value Level concerning $2.54, later Nominal Earnings GDP will remain <u>$4387 b</u> still Real Income GDP will remain <u>$4500 b</u> ..
When new firms have an incentive to enter a competitive market, their entry will BRING DOWN PROFITS OF EXISTING FIRMS IN THE MARKET.
This is because, those customers who are patronizing the existing firms before will start patronizing the new firms.
Answer:
the number of units to be produced is 214,800 units
Explanation:
The computation of the number of units to be produced is given below;
= Budgeted units sales + required ending inventory - opening inventory
= 204,000 units + (240,000 units × 30%) - 61,200 units
= 204,000 units + 72,000 units - 61,200 units
= 214,800 units
Hence, the number of units to be produced is 214,800 units
We simply applied the above formula so that the correct units could come
Certificates of deposit is considered a low-risk investment.
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Explanation:
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CD s or Certificates of Deposits are the accounts for making deposits and are offered by banks. These funds that you deposit in this account will be safer and it should be deposited for some specific time period. There will not be any uncertainty associated with this type of investments.
The interest rates will not be change based on any factors.But the advantage is that if you want to withdraw the invested amount before the maturity period there should be some penalties associated with that. So we can have several CD account to withdraw during the maturity dates.
