It is important so business managers can make more successful decisions and facilitate problem solving and decision making.
Answer: E) Many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.
Explanation:
The scenario that'll make the labor union accept Richard's suggestion to lower the wages is when many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.
The reduction in wages by Xanadu Industries wouldn't bring about loss.of workers as the manufacturing plant is the only industry in the area. Another way the company can reduce cost is through the reduction in its raw materials cost. If the employees aren't satisfied due to the reduction in wages, they can look for employment at Utopia Industry.
Therefore, the correct option is E.
The given statement " A director violates the corporate opportunity doctrine if he or she competes with the corporation, unless the disinterested directors approve of the director's actions " is TRUE
Explanation:
A business opportunity applies to any business opportunity that a client may gain.
The Corporate Opportunity law controls the moral responsibility of directors, managers and managing stockholders in an organisation, with loyalty responsibilities, not to misuse such incentives without first offering to the corporate board the right to reject the opportunity on behalf of the company.
When these actions are broken and a director of the company takes the chance, then the trustee has abused his obligation to be trustworthy and will be able to maintain a constructive trust with the proceeds arising from the incorrect transaction.
Answer:
b. $75,000
Explanation:
Depreciable cost is the amount of an asset's cost that will be depreciated. Depreciable cost is calculated by using purchase and installation cost of a fixed asset, minus its estimated salvage value at the end of its useful life.
Depreciable cost = Total asset cost - salvage value = $90,000 - $15,000 = $75,000
The company then uses a depreciation method, such as the straight-line method, to calculate depreciation expense of the equipment.
Example:
Annual Depreciation expense = $75,000/6 = $12,500
Answer: Please refer to the explanation below for the full answer.
Explanation: The allowance for doubtful debts acts as a holding account for any accounts in the Accounts Receivable that might not be collected. In other words any accounts that are written off as bed debts will be removed from this account.
Reasons why this account can become very large in relation to the Accounts receivable are:
1. An incorrect or high percentage may be used to estimate accounts that may be written off as bad debts. This can lead to an unnecessarily high allowance for doubtful debts account.
2. There might be an error in the overall calculations done.
3. A large amount of old bad debts that have not been removed from this account may still be sitting in the account.
4. Fraud
