Answer:
$1,500
Explanation:
Given that,
Sales = $9,000
Operating costs = $6,000
Depreciation = $1,500
Interest rate = 7%
Federal-plus-state income tax rate = 40%
Operating income or EBIT:
= Sales - Operating costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.
Answer:
The answer is False
Explanation:
The upper-level managers of Premium Java should do it for three reasons:
1. To provide direction and momentum - Delivering company's long-range goals and vision to the employees is the responsibility of the leadership.
2. To encourage retention of high-value employees - Once the employees understand the goals and vision of the company, this will enable the organisation to gain commitment of the employees, thus reduced employees' turnover will be faced.
3. To develop a sustainable competitive advantage - organisation will be able to attain a sustainable competitive advantage, as a result of the above two.
Answer:
True
Explanation:
The efforts made by company to contribute towards sustainable development and improvement of society is called Corporate Social Responsibility(CSR).
By practising social responsibility it tries to be conscious of the social, economic and environmental impact it is having on the society. If a company is engaged in CSR, it means that a company is making positive contribution to environment and society. Philanthropy is one way in which company indulges in CSR. It is helpful for both the corporation and the employees. It helps the company to form stronger bond with employees and boosts their morale.
Answer:
A.rose making the interest rate fall
Explanation:
According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.
The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.
