Answer:
Conspicuous consumption
Explanation:
Based on the scenario being described within the question it can be said that this kind of purchasing is known as Conspicuous consumption. This term refers to when an individual buys goods or services with the main focus/goal of publicly display their economic prowess. Which is what Hope is doing in this scenario by buying an expensive designer bag in order to make her peers jealous.
The purpose of this category of interview questions is to obtain factual information about the interviewee.
Answer:
The answer is given below;
Explanation:
Patent ($30,000+$2,000) Dr.$32,000
Advertising Expense Dr.$70,000
Legal Fees Expense Dr.$8,000
Cash Cr.$110,000
Please note that purchase cost of patent and legal fees paid for the transfer of patent are capital expenditures, therefore they are capitalized.
Where as the advertising and attorney's fee are revenue expenditures.
Answer: Option (B) is correct.
Explanation:
Capital contribution by David = $40,000
Interest of David in partnership =
Total capital of the partnership after the admission of new partner:
=
= $200,000
Total capital of partnership before decreasing of obsolete inventory:
= $140,000 + $40,000 + $40,000
= $220,000
Therefore, value of decrease in inventory:
= Total capital before decrease - Total capital after decrease
= $220,000 - $200,000
= $20,000
The reduction in value of inventory will be distributed in old partners in ratio of 3:1
Hence,
Capital balance of Allen after admission of David:
=
= $125,000
Capital balance of Daniel after admission of David:
=
= $35,000
Answer:
Strength:
Further strengthening the brand name and will be able to capture the market share by staying open for 24 hours.
Increasing the efficiency of the franchise by selling additional products. (Sales to capital employed ratio)
Excellent location will add up value to the franchise which makes it more prior to the other pizza offering franchises.
Weakness
Staffing and inventory management would be required for the additional working hours and at night shifts the employees demand more for the services they offer.
Opportunity
There is additional demand for the products of the Domino's to sell the customers at night. Usually in the weekends, Americans go to bed late night.
Threats
We are promoting late night eating which is not good for health so this is threat to our brand image.
Their is the threat that the existing competitors must react to our offerings by lowering their cost or by increasing the quality of their offerings.