Answer:
This is false. buying a franchise is expensive, as it involves buying the rights of a business from the business owners, who are commonly referred to as ''franchisiors".
Explanation:
Ravi would not be able to run the franchise business the way he wants as the Franchisiors determines the business model and procedures. Hence, he would have a limited control on the business. Thus, I would advise Ravi to avoid going into a Franchise business, if his motive is to be his own boss and have control on his business.
Good news is when families are happy not arguing with each other. The bad news is when they fight and it messes up the family they separate.
Explanation:
a. The journal entries are as follows
Taxes Expense A/c Dr $12,320
To Prepaid Taxes A/c $12,320
(Being the tax expense is recorded)
The computation is shown below:
= $18,480 × 8 months ÷ 12 months
= $12,320
Taxes Expense A/c Dr $45,000
To Property Taxes Payable A/c $45,000
(Being the taxes expense is recorded
b. The amount of tax expense for the current year is shown below:
= $12,320 + $45,000
= $57320
Answer:
A U.S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar, were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to reduce its estimate of the previously computed net present value.
Explanation:
The difference between the present value of cash inflows and the present value of cash outflows over a period is referred to as the net present value (NPV).
NPV is used In capital budgeting and investment planning, NPV is used to analyze the profitability of a projected investment or project.
The company should therefore reduce the estimates because it will increase the discount rate which would, in turn, impact the net present value (NPV) and drag it down to lower value.
