All categories

3 years ago

What is the government's goal when providing a company with a subsidy?

Business

1 answer:

kirill [66]3 years ago

3 0

Answer:

c) to increase their supply

Explanation:

A subsidy is an incentive or motivation from the government to private businesses or individuals. Subsidies are usually in the form of cash, tax breaks, loans, or grants. The government gives subsidies to support production in the sector it wishes to promote.

Subsidies lower the cost of production to the business. Consequently, an entity increases its production quantities and can supply the market at lower prices. Subsidies, therefore, increase supplies in the market at friendly prices.

You might be interested in

The bond that you own does not pay any interest. Instead, it is sold at a "discount" from its maturity value. This is a _____

Rzqust [24]

Answer:

The correct anwer is zero coupon.

Explanation:

A zero coupon bond is one in which there is no periodic payment of interest during the life of the bond and is sold at a discount well below its nominal value. The holder receives a return that is generated through the gradual appreciation of the security and it is redeemed at a predefined date in the future.

7 0

3 years ago

On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated resid

m_a_m_a [10]

Answer:

Explanation:

Cost = 68500

Date = January 1, 2017

December 31, 2019

Cost = 68500

Acc. Depreiciation = -34,250 (68500/6)*3

book Value = 34,250

Exchanged asset cost = 35000

Trade in gain = 750

Accounting Entries

Asset 35000

Accumulated depriciation 34250

Asset 68500

Gain on Exchange 750

7 0

3 years ago

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock outstandin

Ivahew [28]

Answer:

<em>Increase to Cash dividends</em>

Explanation:

The entry on declaration of dividend is Retained earnings debit and credit is given to dividend payable. The cash dividend will increase to shareholders as a result of this action. The dividend payable will increase. Cash is not affected when dividends is declared. Cash is affected only when dividend is paid on August 15, 2017. Cash dividend will not decrease since dividend is paid it will increase. There are total 2 entries passed one on July 15th for dividend declaration and on August 15th for dividend payment. The record date of July 31 is only for determining which shareholders are eligible for dividend and no entry is needed.

5 0

3 years ago

Situation: C’est Wot is a Quebecois-British fusion restaurant specializing in jellied eel poutine. To encourage customers to bri

Andreas93 [3]

C’est Wot is a Quebecois-British fusion restaurant specializing in jellied eel poutine. To encourage customers to bring their friends, C’est Wot gives first-time visitors buy-one-get-one meal vouchers for their next visit. This is an example of: adding force.

<h3>What is an adding force in business?</h3>

This is the term that is used to describe the way that a company is able to get consumers that would get to purchase and consume their products. It is a strategy that is used to facilitate increased consumer base.

The way this is seen here is that the business had to create a system that would bring them more people. To do this they had to create a way for people to come in pairs.

The first time visitors are given a voucher that would enable them to get free meals when they visit.