Answer:
The lower than expected inflation would benefit the union and not benefit Friendly Airlines.
B. Variable inflation is associated with high transaction costs
Explanation:
Inflation is a persistent rise in the general price levels.
It was expected that inflation would increase by 3% and because of that expectation, wages were increased by 5%.
As it turns out, inflation only increased by 2%. If employers were aware that inflation would increase by only 2%, the increase in income would have been 4%.
As a result of this, the company ends up paying more to workers and workers and up earning more. So, the union benefits while the airline is at a disadvantage.
Because of the uncertainty of inflation, the union dedicates high amount of resources to monitor its movements. This shows that there is a high cost associated with the uncertainty of inflation.
I hope my answer helps you
Answer:
Return on Investment
The statement that is true is:
b) If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $600,000 (30% of $2,000,000).
Explanation:
The company's Return on Investment is a financial performance measure that calculates the efficiency of the use of investment resources by dividing the returns generated by an investment by the cost of the investment during a period of time. It can be used to evaluate a divisional manager's performance based on the returns generated from the investments made in the division.
Answer:
Rent expense of $2,000
Prepaid rent of $22,000
Explanation:
Since we were told that On November 1,2019 Movers Inc., paid the amount of $24,000 for a 2 years' rent which will start or begin on November 1 which means Movers' year-end financial statements as of December 31,2019 will show:
Rent expense of $2,000
Prepaid rent of $22,000
The rent expense of $2,000 is calculated as
(1÷12*$24,000)=$2,000
The prepaid rent of $22,000 is calculated as
$24,000-$2,000
$22,000
Answer:
The correct option is that the company receives nothing.
Explanation:
Secondary market stock transactions take place between investors who already hold the stock and the other one who is willing to buy the stock,the company whose stocks are being traded is not a party to the transactions,as a result,would receive nothing from such secondary market stock transactions.
The company would have receive cash if the it had issued shares to new investors for the first time through investment banks ,which is initial public offer,or if shares were issued to existing stockholders,the rights issue
