Answer:
credit interest receivable200. debit interest revenue 200
Explanation:
Answer:
a. Accounting profit for the business = $3,500
b. Economic loss = $1,000
c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation. In subsequent years, the revenue may increase to generate better economic profit. This is the labor, risk, and reward of entrepreneurship.
d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs. They are merely laborers who cannot assume any risk for greater rewards tomorrow.
Explanation:
Cost of business per month:
Operating expenses = $4,000
Lease of building = 2,000
Total expenses = $6,000
Revenue = $10,000
Accounting profit $4,000
Economic profit:
Revenue = $10,000
Total expenses = $6,000
Opportunity costs:
Lost salaries 4,500
Lost Interest 500
Total costs $11,000
Economic loss = $1,000
Answer: Peripheral route.
Explanation:
Persuasion is the ability to convince one or more people about something, to think in a certain way, or to do something in particular.
The persuasion follows two routes; the central route, and the peripheral route:
- The central route of persuasion occurs when the person is persuaded by the message received.
- The peripheral route of persuasion occurs when the person is persuaded by something different than the message, such as how the message is presented.
In this case, Trevor was guided by what he saw to decide, so he followed the peripheral route of persuasion.
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Answer:
0.1875; 0.375; 0.4375
Explanation:
Given that,
Adobe Systems stock = $3,000
Dow Chemical = $6,000
Office Depot = $7,000
Total Value of stock:
= Adobe Systems stock + Dow Chemical + Office Depot
= $3,000 + $6,000 + $7,000
= $16,000
Portfolio weights of Adobe Systems stock:
= Value of Adobe Systems stock ÷ Total Value of stock
= $3,000 ÷ $16,000
= 0.1875
Portfolio weights of Dow Chemical stock:
= Value of Dow Chemical stock ÷ Total Value of stock
= $6,000 ÷ $16,000
= 0.375
Portfolio weights of Office Depot stock:
= Value of Dow Chemical stock ÷ Total Value of stock
= $7,000 ÷ $16,000
= 0.4375