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3 years ago

Which one of the following is true?

Business

1 answer:

Sedaia [141]3 years ago

7 0

Answer:

Option A is correct

Explanation:

Customer are defined by the purchase because purchase is the attribute that makes a person or people a customer to a particular product for sale, it can also be refered to as business to customer relationship.

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A firm has adopted a policy whereby it will not seek any additional external financing. Given this, what is the maximum growth r

dlinn [17]

Answer:

Explanation:

Given:

The net income = $12,000

Total equity = $40,000

Total assets = $80,000

Dividend payout ratio = 40%

Now,

Internal rate of return, r = $\frac{\textup{Net Income}}{\textup{Total Equity}}\times100\%$

Internal rate of return, r = $\frac{\textup{12,000}}{\textup{80,000}}\times100\%$

Internal rate of return, r = 15%

and,

Retention ratio = 1 - Dividend payout ratio

= 1 - 0.40

= 0.60 or 60%

Now,

Growth rate = Retention ratio × Internal rate of return

Growth rate = 0.60 × 0.15

Growth rate = 0.09

Growth rate = 9%

7 0

2 years ago

On October 1, 2017 Bartley Corporation issued 5%, 10-year bonds with a face value of $8,000,000 at 103. Interest is paid on Octo

loris [4]

Answer and Explanation:

The journal entry to record the issuance of the bonds is shown below:

Cash Dr ($8,000,000 × 1.03) $8,240,000

To Bond payable $8,000,000

To Premium on bond payable $240,000

(Being issuance of the bond is recorded)

Here cash is debited as it increased the asset and credited the bond payable and the premium on bond payable as it increased the liabilities

Hence, the same is to be considered

6 0

2 years ago

How do horizontally organized companies differ from traditionally organized companies

GenaCL600 [577]

Horizontally organised companies do not have a strict hierarchy of posts with increasing importance and allow more freedom to the employees.

Explanation:

Horizontally organised companies function very differently from traditional companies as the traditional structure is a pyramidal vertical structure.

<u>In this structure people at the top are few and are at higher positions and issue orders which are distributed by managers to employees.</u>

<u>In the horizontal structure the managers are taken out of play and even the employees make important decisions for the company.</u> This allows for greater morale and freedom but can only work for small and medium sized businesses in certain niches.

7 0

3 years ago

West Company paid cash for dividend. With respect to this event, indicate whether the following statement is______________.

Alinara [238K]

Answer:

True

Explanation:

A public limited company can pay cash dividends to its shareholders for their contribution to the company. Therefore, the statement "West Company paid cash for dividend" is correct.

No other form of organization cannot pay dividends. They can pay a share of profit or extra benefits. Only in the corporation, especially in public limited, shareholders are given a cash dividend by its management body.

8 0

3 years ago

The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service de

hichkok12 [17]

Explanation:

The computation is shown below:

For return on investment

Return on investment = Income from operations ÷ invested assets

= $13,200,000 ÷ $55,000,000

= 0.24 or 24%

For Investment turnover

Investment turnover = Sales ÷ Invested assets

= $82,500,000 ÷ $55,000,000

= 1.5

For Profit margin

Profit Margin = Income from operations ÷ Sales

= $13,200,000 ÷ $82,500,000

= 0.16 or 16%

The return on investment

= Profit margin × investment turnover

= 16% × 1.5

= 24%

4 0

3 years ago

Which one of the following is​ true?

Which one of the following is true?