Answer:
The correct answer is letter "D": The corporate tax rate increases.
Explanation:
In case the government decides to increase the corporate tax rates, companies will have to invest more in their production process so the output will be higher as long as the revenues so that extra profit could cushion the increase in the levies. However, <em>if companies do not have enough reserves to invest, they are likely to request loans</em> that will increment the firm's debt in the long run.
<span>The answer is "quality services is pursuing a "diversification" strategy.
</span>
Diversification refers to a corporate strategy to go into another market or industry in which the business doesn't work right now, while likewise making another item for that new market. This is the most dangerous segment of the Ansoff Matrix, as the business has no involvement in the new market and does not know whether the item will be effective.
Answer:
Total FV= $29,335.25
Explanation:
<u>First, we need to calculate the future value of the initial investment ($2,500) using the following formula:</u>
FV= PV*(1 + i)^n
PV= $2,500
i= 0.0075
n=10*12= 120 months
FV= 2,500*(1.0075^120)
FV= $6,128.39
<u>Now, the future value of the $1,500 annual deposit:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
We need to determine the effective annual rate:
Effective annual rate= (1.0075^12) - 1= 0.0938
FV= {1,500*[(1.0938^10) - 1]} / 0.0938
FV= $23,206.86
Total FV= $29,335.25
Answer:
The activity base selected determines whether a cost behaves as a variable cost or fixed cost. This statement is true.
The correct answer is A.
Explanation:
Variable cost is a cost that fluctuates with respect to activity level while fixed cost is a cost that remains unchanged irrespective of activity level.
Thus, the activity base selected determines whether whether a cost is fixed or variable.
Answer: 6/25
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