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Mama L [17]
3 years ago
9

As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories genera

lly increase, and purchases of inventories result in more accounts payable. Thus, spontaneous liabilities that reduce AFN arise from transactions brought on by sales increases. True or false?
Business
1 answer:
yanalaym [24]3 years ago
6 0

Answer: True

Explanation:

Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.

It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.

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If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is
olasank [31]

Answer:

Because of economies and diseconomies of scale.

Explanation:

Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.  

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.  

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.  

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

3 0
3 years ago
Whose name is associated with humanism
Svetradugi [14.3K]

Answer:

The major theorists considered to have prepared the ground for Humanistic Psychology are Otto Rank, Abraham Maslow, Carl Rogers and Rollo May. Maslow was heavily influenced by Kurt Goldstein during their years together at Brandeis University. Psychoanalytic writers also influenced humanistic psychology. i hope this helps

Explanation:

7 0
3 years ago
You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair
Crazy boy [7]

Answer:

b. $5m

Explanation:

If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m

Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)

In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45

While the Total Consideration = $50

Therefore Goodwill = $50m - $45m = $5m

5 0
3 years ago
Tyler has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He does
svp [43]

Answer:

business partner

Explanation:

Business partner -

It refers to the authority in the business , which has the right to take decisions for the project of the business , is referred to as business partner .

The relation between the two or more people i.e. , the business partners can be on the contract basis or exclusive in nature .

Hence , from the given scenario of the question ,

Tyler need a buisness partner for his business .

8 0
3 years ago
How does a business achieve economies of scale?
vaieri [72.5K]

Answer:

Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.

7 0
3 years ago
Read 2 more answers
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