Answer:
1. Private ownership of factors of production
2. Freedom to engage in commercial activities
Explanation:
<u>1. Private ownership of factors of production</u>
In the US, individuals and firms are allowed to own properties. A significant percentage of the factors of production are in the hands of the private sector. Firms and individual influences the production of goods and services because they allocate resources to meet market demand.
<u>2. Freedom to engage in commercial activities</u>
Entrepreneurs have the freedom to choose the type of business they want to start. They can also select the location and the time they want to operate. There are no upper limits to firms that can participate in the market. Consumers are free to choose their suppliers. The market presents a variety of goods and services to consumers to pick from.
Answer:
b. capitalized
Explanation:
The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.
Answer:
Purchase Price Variance (PPV)
Explanation:
Answer:
Present Value 5,715,331.32
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company
Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.
Explanation:
We are going to discount the yearly cash-flow at the given rate of 12.50%
then, the terminal value which is the present value of the future period will also be discounted at this rate.
The sum of all this will be the present value of the firm.
![\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%24Year%26%24Cash%20Flow%26%24Discounted%5C%5C1%26575000%26511111.11%5C%5C2%26625000%26493827.16%5C%5C3%26650000%26456515.77%5C%5C4%26725000%26452613.93%5C%5C5%26850000%26471689.61%5C%5C%24terminal%266000000%263329573.74%5C%5CPresent%26Value%265715331.32%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The formula we use the present value of a lump sum:
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company
Answer:
The correct answer is d) Controls
The goal of Control in an organization is making sure that the company's procedures meet the required criteria of a particular standard. A company needs to have accounting standards, production standards, and management standards, and it is through control processes that those standards are met.
