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3 years ago

A key reason most sole proprietorships remain relatively small is that:

Business

1 answer:

Ierofanga [76]3 years ago

6 0

Answer:

A. They have limited ability to raise funds needed to finance Growth

Explanation:

What is a Sole Proprietorship

A sole proprietorship represents a business that owned and run mostly by an individual who has the responsibility of paying income tax on any profit generated by the business. Sole Proprietorship is also a very popular form of business around the world.

Characteristics of a Sole Proprietorship

It is usually owned by an individual who is responsible for its profits as well as its risks
Sole Proprietorships are easy to set-up due to its simple management and ownership structure
Due to the singular ownership decision making is limited to the capacity of the owner
Since it is unincorporated, a sole proprietorship has limited access to capital for expansion such as gearing and the stock market option of getting shareholders. As such, the capital of a sole proprietorship is limited to personal savings, borrowing based on limited collateral, grants and gifts from friends and family.

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As an elected official, you have been informed that real gdp is below its potential and that action should be taken to encourage

il63 [147K]

To find the answer, we first calculate the multiplier.

By using the equation,

ms= 1 ÷ (1 – MPC)

MPC = marginal propensity to consume = 0.8

ms= 1 ÷ (1 – MPC) = 1 ÷ (1 - 0.8)

= 5

Thus, the multiplier is 5.

An increase in government spending = $600 billion

Now, multiplied $600 billion by the multiplier, which is 5.

$600 billion x 5

= $3,000

Thus, the answer is $3,000 billion increase in real GDP.

6 0

3 years ago

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco

nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000 - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0

3 years ago

Emilio works in a power plant control room. Dawn works in a coal mine. What do Emilio and Dawn have in common? They both are sel

Makovka662 [10]

Answer:

They both work in the Energy Transmission career pathway

Explanation:

Emilio and Dawn work in the "Energy Transmission career pathway".

In Energy career pathway, there are there stages. First is Energy generation, second is Energy transmission and third is Energy distribution.

In Energy transmission, power is evacuated from the generating stations via transmission networks. This happens in coal mines and power plant control room. Bulk of generated energy is covered in Energy Transmission Pathway from the source to the electrical substation through a transmission network. One needs critical thinking to analyze the information and stress management as employees to handle urgent tasks as well.

5 0

3 years ago

Today, you are purchasing a 15-year, 6.5 percent annuity at a cost of $36,500. The annuity will pay annual payments starting one

Licemer1 [7]

Answer:

Periodic payment = $3,881.88 (Approx).

Explanation:

Given:

Present value of annuity = $36,500

Rate = 6.5% = 0.065

Number of payment = 15

Computation:

$Present\ value\ of\ annuity = periodic\ payment[\frac{1-(1+r)^{-n}}{r} ]$

$36,500 = periodic\ payment[\frac{1-(1+0.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-(1.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-0.388826524}{0.065} ]\\\\36,500 = periodic\ payment[\frac{0.611173476}{0.065} ]\\\\36,500 = periodic\ payment[9.40266886 ]\\\\periodic\ payment = 3,881.87658$

Periodic payment = $3,881.88 (Approx).

4 0

3 years ago

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of the British pound to be $1.

wariber [46]

Answer:

Sell pound forward

Explanation:

Forward rate = $1.51 *(1+2.65%) = 1.51 * 1.0265 = 1.55

Amount receivable in case of forward hedge = 100,000 * 1.55 = 155,000

Premium payable on put options = 100,000 * 0.3 = 3,000

Amount receivable in put options = 100,000 * 1.54 = 154,000

Net receivables in put options = 154,000 - 3,000 = 151,000

Conclusion: Higher amount is available in case of forward hedge. So, sell pound forward

5 0

3 years ago