Neal receives the additional $75,000.
<h3>
What are liabilities?</h3>
- A liability is defined in financial accounting as the future sacrifices of economic benefits that an entity is obligated to make to other entities as a result of past transactions or other past events, the resolution of which may result in the transfer or use of assets, provision of services, or another future yielding of economic benefits.
- A company's assets are what it owns, while its liabilities are what it owes.
- Both are included on a firm's balance sheet, which is a financial statement that demonstrates the financial health of the company.
- Equity, or an owner's net worth, is equal to assets with fewer liabilities
Liability Examples -
- Bank indebtedness Debt from a mortgage.
- Suppliers owe money (accounts payable) Wages are owing.
- Taxes are owing.
- In the given situation Neal was the owner and so it will have the liability of $425,000 and the additional amount of $75,000.
Therefore, Neal receives the additional $75,000.
Know more about liabilities here:
brainly.com/question/24534918
#SPJ4
A person who organizes,
operates, and assumes the risk for a business venture is called an entrepreneur.
They are commonly seen as a business leader and innovator. Businessman sometimes
take advices from them.
Answer:
D) a transnational strategy
Explanation:
From the description, Devonshire Ventures seems to be seeking a balance between local responsiveness and global integration hence said to use a transnational strategy. Another reason is because their operations and communication are between borders and beyond geographical boundaries so that each division can learn from each other globally.
Answer:
D) has sunk costs of $6,000
Explanation:
Sunk cost is a cost which does not effect the financial decision, as this cost has already been incurred, and now it cannot be revoked.
Here maintenance cost is a regular expense which has to be incurred, and its not the cost which has already been incurred, same applies for operating cost.
Two years ago firm had spent $6,000 upgrading the equipment which was incurred earlier and now that cost cannot be revoked, further it will not lay any impact on any of the decisions made by the financial management.
Further amount to be spend of $5,000 has yet to be incurred and the decision to incur such cost can also be avoided, therefore it is not a sunk cost.
In this scenario D) has sunk sunk cost of $6,000
