Answer:
Market Testing Stage
Explanation:
This was a new venture for Nicole. She wanted to try something new for the first time as compared to the normal business routine she had. So, she took the advice of her friend and combined spices after which, she distributed a first batch to grocery stores in Portland Seattle. She did this to test her product, to see how well customers would take this innovation. The feedback gained from the grocery stores she supplied to will be a determinant if she should continue mass production or not. That point is what we call Market testing stage.
The accounting entry is to Credit Cash for 25000 and Debit Common Stock for 25,000
<h3 /><h3>What is journal entry?</h3>
Journal entry shows how a business financial transactions are being recorded.
Typically, when cash is withdrawn from a business or personal account, the accounting entry is to credit the cash account.
Hence, the accounting entry is to Credit Cash for 25,000 and Debit Common Stock for 25.000.
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Answer:
TRADE DEFICIT
FOREIGN CURRENCY RESERVE DEPLETION
LOCAL CURRENCY DEVALUATION
RECESSION
POTENTIAL UNEMPLOYMENT
Explanation:
The problem that could develop if the U.S. became too dependent on other nations for goods and services are:
1. Trade deficit because when a country imports more than it exports it runs a trade deficit.
2. Foreign Currency Reserve Depletion: If the U.S. has to import so much from other countries, it will need to increase its foreign reserve because that is how it will pay for such imports. Otherwise the foreign reserve will be hugely depleted
3. Local Currency Devaluation. Reliance on exports can devalue the worth of the local currency because the demand of the foreign currency will be high in relation to local currency and people will be willing to pay more to get foreign currency, which will devalue the local currency
4. Recession: If the United States is reliant on OPEC countries for Oil and an embargo is placed on oil export from those, the U.S. will suffer a recession.
5. Potential Unemployment: Imports of finished goods will cripple local industries who will be forced to compete with the international firms whose goods and services are being imported; and those employed in such industries might loose their jobs, if the small local enterprises are unable to survive such competition.
