Answer:
True
Explanation:
Winner curse is a situation where the bidder win the bid in an auction that exceeds the true worth or intrinsic value of the item auctioning. In the given scenario the inside managers bid for realistic performance. The outside managers tend to bid for higher performance to get the job. They does not seem to be realistic.
Answer:
Trend Analysis helps to interpret the changes in account balances over certain period of time. Trends in percentages is presented in the table below.
* Excel solution is attached for your reference.
Explanation:
For Rotorua Product Ltd, data trends (in percentages) can be computed using the following formula:
Trend in % = (Current Year ÷ Base Year) × 100
where: Base Year is assumed to be Year 1
Year 1 Year 2 Year 3 Year 4 Year 5
Sales 100.0% 107.9% 112.0% 121.0% 127.7%
Current Assets
Cash 100.0% 132.5% 112.6% 90.1% 95.4%
Accounts receivable, net 100.0% 102.9% 107.1% 119.7% 136.8%
Inventory 100.0% 108.3% 104.2% 109.9% 113.6%
Total current assets 100.0% 108.1% 105.6% 111.8% 119.9%
Current liabilities 100.0% 108.5% 103.7% 105.5% 128.0%
Answer:
Some major factors:
Natural Resources
Physical Capital or Infrastructure
Population or Labor
Human Capital
Technology
Law
Poor Health & Low Levels of Education
Lack of Necessary Infrastructure
Explanation:
Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $52,000 + $34,000 - $12,000
= $74,000
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
= $71,000 + $20,000
= $91,000
The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:
Answer:
Aged Cheddar cheese & Bread prices fall because their has been a decrease in their demand.
Explanation:
Given : Aged Cheddar cheese & Bread having inelastic & elastic supply respectively ; Income tax increase decreases demand of both.
Income Tax is a direct tax whose incidence an impact lie on the same person & burden can't be shifted.
- Increase in income Tax reduces the disposable income of consumers & as said - reduces demand of both the goods.
- This tax burden can't be shared between sellers & buyers will not effect the supply side (unlike indirect tax - eg sales tax).
Elasticities of supply is just supply responsiveness to price change, is not relevant here.
So : Supply being same & decrease in demand (i.e leftwards shift in demand curve) creates Excess Supply at that price level, irrespective of supply elasticity. Excess supply creates competition among sellers and reduces the price.
