This strategic move will positions Zenovia Incorportation to enjoy and benefit from economic arbitrage. Economic arbitrage refers to simultaneous buying and selling of an asset or a product in order to make profit from the price difference. Arbitrage strategy profits by exploiting the price differences of a particular product in different markets.
Answer:
Ponzi scheme
Explanation:
Ponzi scheme is a fraud investment strategy that promises to pay a substantial sum of returns. In a Ponzi scheme, generate income for the old investor by using the money of the newest investor and this chain goes on. This is basically a fraudulent scam or investment strategy to get a significant amount of money. Ponzi scheme is similar to pyramid strategy both are based on using new investor’s fund.
Answer:
$10,000
Explanation:
Net Credit Sales $250,000
Allowance for Doubtful Accounts $250,000*4%=$10,000
Bad Debt Expense will be $10,000
Bad Debt Expense Dr.$10,000
Allowance for Uncollectible Cr.$10,000
Store equipment will increase