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AlekseyPX
3 years ago
6

A firm’s liquidity level decreases when:_______.

Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

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Beth sells candles from her website. She can get a candle from her suppliers at a cost of $3 to her. The candles have been selli
statuscvo [17]

Answer:

$10.67

Explanation:

Data provided in the question:

Initial cost = $3

Initial selling cost = $5

Initial sales = 4000

with $1 increase in price she loses 300 sales per month

Now,

Let the increase in price which maximizes the profit be '$x'

Therefore,

Final selling price = $5 + x

Final sales = 4000 - 300x

Thus,

Revenue = Final selling price × Final sales

= ( 5 + x)( 4000 - 300x)

= 20,000 - 1500x + 4000x - 300x²

= 20,000 + 2500x - 300x²

Total Cost = Initial cost × Final sales

= 3(4000 - 300x )

= 12,000 - 900x

Now,

Profit = Total revenue - Total cost

or

P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]

or

P = 8,000 + 3400x - 300x²

for point of maxima \frac{dP}{dx}=0

Thus,

0 = 0 + 3400 - 300(2x)

or

0 = 3400 - 600x

or

600x = 3400

or

x = \frac{17}{3}

Hence,

The price will be = $5 + x = 5 + \frac{17}{3}

= $10.67

7 0
3 years ago
At ICS Inc., a company that deals in software products, employees regularly complain about the lack of clarity regarding the tas
nekit [7.7K]

Answer:

<u>E) recruitment and selection</u>

<u>Explanation:</u>

The <u>human resource department </u>of an organization is responsible for assigning tax to employees after recruitment based on their abilities.

Hence, the human resource team at ICS Inc needs to improve on filling the gaps in the organization or selecting the best employee for a particular job. This role involves providing clarity regarding the tasks employees are required to perform.

8 0
3 years ago
Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. T/F
pav-90 [236]

Answer: False

Explanation: Static budget refers to that budget which is made for the upcoming period. A static budget incorporates anticipated values of inputs and outputs in it. It does sometimes assumes extreme business environment conditions.

Therefore, it is not feasible to compare the actual budget with the static plan as there is a high chance that both will differ by a high amount.

Hence, the given statement is false.

3 0
3 years ago
What concept refers to all factors outside an organization that affect the organization's operation?
Verdich [7]
Organizational environment is the concept that <span>refers to all factors outside an organization that affect the organization's operation. These factors affect performance, resources, and operations. These are factors to consider when predicting trends and making decision regarding the company. </span>
3 0
3 years ago
"The next dividend payment by Savitz, Inc., will be $1.48 per share. The dividends are anticipated to maintain a growth rate of
scoundrel [369]

Answer:

The correct answer is 10.48%.

Explanation:

According to the scenario, the given data are as follows:

Current price = $27

Expected dividend = $1.48

Growth rate = 5%

So, we can calculate the required return by using following formula:

Required return = (Expected Dividend ÷ Current Price ) + Growth rate

By putting the value in the formula,we get

Required return = ( $1.48 ÷ $27 ) + 5%

= 0.05481 + 0.05

= 0.10481 or 10.48%

6 0
3 years ago
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