The answer is target market. It is because the firm should be dependent on the target market in order to make decisions about production because the target market is where the product or service lies in means of having to understand and have the knowledge of what the group is trying to aim.
Please find diagram for question attached
Question options:
a.
overvalued; surplus of dollars
b.
undervalued; shortage of pesos
c.
overvalued; shortage of dollars
d.
undervalued; surplus of pesos
Answer:
Overvalued and there is a shortage of dollars
Explanation:
An increase in dollar price to buy peso means that dollar here is overvalued as it is above the equilibrium price(E2),and therefore it would be expensive to buy goods that are sold for a certain amount of dollars or in dollar currency with the Mexican pesos. This is because the fixed exchange rate system tries to ensure smooth and inexpensive trade between countries as it has to do with currency trading barriers by pegging a currency to another(in this case dollars) but here the dollar price increase for peso makes it more expensive to buy dollar products with pesos. Also this is caused here by the shortage of dollars.
Answer:
The capital budget is the correct answer to this question.
Explanation:
The capital budget varies from the budget period because its elements are of a long-term type. The capital budget is made up of capital expenditures and payments.
Capital budgeting is critical because it provides transparency and quantification. The capital budgeting method is a tangible way for companies to assess the long-term financial and economic feasibility of any development plan. The decision on capital budgeting is both a financial undertaking and an investment.
Diversifying. It is so that they can tap into other markets.
Answer:
The journal entry is given below:
Explanation:
Date Description Debit ($) Credit ($)
Dec 1 Cash 20,000
Accounts Receivable $(145000-5000)(1) 140,000
Merchandise Inventory* 101,700
Equipment** 81,200
Allowance for doubtful accounts 4,400
Payne, Capital 338,500
Note: 1) Since $5,000 of accounts receivables are irrecoverable, therefore, it is an expense, which decreases the accounts receivables amount.
* Merchandise inventory to be valued at a current year's ending price
** For partnership journal purpose, equipment is to be valued at net book value price rather than cost price.
Therefore, Payment's investment is $338,500.