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3 years ago

Fiscal policy refers to the

Business

1 answer:

Triss [41]3 years ago

3 0

Answer: Option (c) is correct.

Explanation:

Correct option: Deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level.

Fiscal policy refers to the policy that is used by the government to stabilize the domestic output, employment and price level. Government uses contractionary and expansionary fiscal policy to stabilize the economy at the equilibrium level.

Changes in government spending and taxes are the tools of the fiscal policy through which government stabilize the economy and it generally affects the aggregate demand & level of economic activities in the country.

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Which three factors make starting a business a highly risky investment?

Alika [10]

The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.

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3 years ago

The risk-free rate of return is 10.5%, the expected rate of return on the market portfolio is 17%, and the stock of Xyrong Corpo

nadezda [96]

Answer:

$88.24

Explanation:

The computation of the intrinsic value of a share of Xyrong stock is shown below;

k = risk free rate of retunr+ beta[expected market rate of return - risk free rate of return]

= 10.5% + 1.5(17% - 10.5%)

= 20.25%

Now

growth rate = b × ROE

= .5 × 24%

= 12%

Now the intrinsic value of the stock is

= (($13 × 50%) × (1 + 0.12)) ÷ (0.2025 - 0.12)

= $88.24

5 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago

Johnny’s Drive-in pays its employees bi-weekly. The first payday of 2014 will be on January 3 and will compensate employees for

Sonbull [250]

Answer:

Accounts

Wages Expense

Wages Payable

$100,000

Explanation:

As the expense is accrued but not paid at the end of 2013. The transaction requires an adjusting entry. This will charge a wages expense and create the wages payable liability. Ultimately on January 3 it will be paid. Wages for the two weeks are $100,000 and the 14 days has been passed for the pay period until year end of 2013.

5 0

3 years ago

What is opportunity cost?

Sliva [168]

The answer would be B

8 0

3 years ago