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3 years ago

Which statement is true?

Business

1 answer:

Umnica [9.8K]3 years ago

3 0

Answer:

-All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity.

Explanation:

An annuity refers to payments received at a regular interval, e.g. monthly or yearly payments. Annuities can be divided into two types:

annuity due: payment is received at the beginning of the time period, e.g. rent received at the beginning of the month
ordinary annuity: payment is received at the end of the time period, e.g. you receive your salary at the end of the month

in order to calculate the present value of any future cash flow (including an annuity payment), you can use the present value formula for each individual payment ⇒ PV = FV / (1 + r)ⁿ. The higher the discount rate r, the lower the present value. When you want to calculate the future value, the opposite happens, the higher the r, the higher the future value.

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A new business has been formed and anticipates raising equity investment from more than 100 individual investors, none of whom a

KatRina [158]

Answer:

The correct answer is letter "D": Limited liability company.

Explanation:

Limited Liability Companies or LLCs are entities where the owners are not personally liable for the debt of the company. Owners are taxed on the company's profits when they receive them only and they are not subject to file an individual tax return for it.

In case the company decides to become public, several standards must be met according to the <em>Securities and Exchange Commission</em> (SEC) for the firm to issue shares of stock or another type of investment vehicle.

5 0

3 years ago

One factor that allows saudi arabia to successfully use strategic trade protectionism to increase oil revenues is that?

enyata [817]

Nations are unable to react by placing limitations on other imports from Saudi Arabia.

What is Strategic Trade?
Strategic commerce refers to the management of certain commodities' export, import, international transit, and transhipment to specific recipients, for specific end-uses/end-users, and under specific conditions. Dual-use drugs and technologies that have both acceptable commercial uses and sensitive uses that could support actions that hurt people or states are those that are listed as subject to UN Security Council Resolution 1540 (2004) and other UN embargoes and penalties. Controlling these commodities requires a balanced strategy; dual-use products, parts, and raw materials must be seen as strategically traded in order to prevent them from moving farther into criminal usages.

To learn more about Strategic Trade
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5 0

2 years ago

Spontaneous funds are generally defined as follows: Select one:

MA_775_DIABLO [31]

Answer:

The correct answer is letter "C": Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include immediate increases in accounts payable, accrued wages, and accrued taxes.

Explanation:

Spontaneous funds are all those incomes that a company receives without expecting them. The money can be received from different internal and external sources but they imply obligations. It means taxes are likely to be deducted after reporting the income in the firm's accounting books.

5 0

4 years ago

Concord Corporation sells radios for $50 per unit. The fixed costs are $665000 and the variable costs are 60% of the selling pri

Bumek [7]

Answer:

Break-even point= 34,400 units

Explanation:

Giving the following information:

Concord Corporation sells radios for $50 per unit.

The fixed costs= $665000

The variable costs= are 60% of the selling price.

New costs:

Increase in fixed costs= 195,000

Variable costs will be 50% of the selling price.

First, we need to determine the new total fixed costs and unitary variable cost:

Fixed cost= 665,000 + 195,000= $860,000

Unitary variable cost= $25

Now, we can calculate the new break-even point in units:

Break-even point= fixed costs/ contribution margin

Break-even point= 860,000 / (50 - 25)

Break-even point= 34,400 units

6 0

3 years ago

Opal Production Company uses a standard costing system. The following information pertains to the current year: Actual factory o

Mariulka [41]

Answer:

$750 Unfavorable

Explanation:

The calculation of variable overhead efficiency variance is shown below:-

Variable overhead efficiency variance = (Actual direct labor hours - Standard hours allowed) × (Variable factory overhead ÷ Factory overhead rate)

= (10,000 hours - 9,500 hours) × ($18000 ÷ 12000)

= 500 hours × $1.5

= $750 Unfavorable

Therefore for computing the variable overhead efficiency variance we simply applied the above formula.

8 0

4 years ago