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3 years ago

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Business

1 answer:

lesya692 [45]3 years ago

7 0

Answer:

1. I could jump start an independent bookstore in the metropolitan that I live in right now. The only bookstore around me is 12 miles away at the mall, and I ponder a good place to put a bookstore is the little city focus with restaurants and other small commerce who sell clothes.

2. I will use stock funds also known as equity funding

Get loan from the bank

3. Funding using debt allows you to keep all ownership of the company and equity funding gives control to someone else and puts a price on the company which isn’t good if just a small start up

4. Equipment: $10,000 to $125,000.

Incorporation Fees: Under $300.

Office Space: $100 to $1,000 per employee per month.

5. Our company will use cash basis. As it is easier to do a business with cash inflows rather than accrual basis where you have to wait till the payment is made.

6. Double entry bookkeeping is better for larger businesses, ones with more transactions, or anyone who wants to keep track of more details. In double entry bookkeeping, TWO entries are made for each transaction: a debit in one account and a credit in another. For example, to pay a $200 bill to a utility the Cash Account would be debited $200 and the utility account would be credited the $200.

7. Competition risk - there could be another business that draws customers away from your company.

Economic risk- if the economy is doing poorly, it could increase costs or reduce sales

Reputation - if someone posts a bad review online, how will that effect your sales?

Legal/Compliance issues- you have to comply with industry regulations and laws, and there is great risk to you and the business if you break these rules

Resources risk - if you rely on a specific material to run your business and that material isn't available you could be in trouble (ex. if the orange crop is wiped out by a hurricane, orange juice makers could be in trouble)

Explanation

Your Welcome

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That would be incentives of entrepreneur

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In this case, personal satisfaction, following own passion, making more money are the incentives of an entrepreneur

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2 years ago

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John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), o

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Answer: $40,710

Explanation:

John's annual compensation includes his actual annual salary as well as the various payments that Heinlein Hillclimbers makes on his behalf.

His total annual compensation is:

= Annual salary + Employer's 401 contribution + Health insurance + Life insurance + AD&D + Profit sharing bonus + Tuition reimbursement + employer only taxes and insurance

= 26,500 + (150 /2 * 12 months) + (150 * 12 months) + (30 * 12 months ) + (50 * 12 months ) + (2% * 26,500) + 5,250 + (18% * 26,500)

= 26,500 + 900 + 1,800 + 360 + 600 + 530 + 5,250 + 4,770

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2 years ago

The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Re

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The three financial ratios that constitute return on revenue are Cost of goods sold/Revenue, Research and Development expense/Revenue, and Selling, general, & administrative expense/Revenue.

What ism financial ratios?

Financial ratios are instrument used by companies to make comparison or to measure the relationship between different financial statement information or data.

Hence, the three financial ratios that constitute return on revenue are:

Cost of goods sold/Revenue
Research & Development expense/Revenue
Selling, general, & administrative expense/Revenue

Learn more about financial ratios here:brainly.com/question/9091091

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2 years ago

A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department.

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Answer:

a. Break-even quantity: 28,000 pens

b. Price: $1.51 per pen

Explanation:

1. Break-even quantity

a) Revenue, R(x)

The monthly revenue is the product of the price by the number of units sold in the month.

Naming x the number of pens sold in the month:

R(x) = $1 × x = x

b) Cost, C(x)

The monthly cost is the sum of the fixed cost per month plus the variable costs:

C(x) = $21,000 + 0.25 × x = 21,000 + 0.25x

c) Break-even

Break-even is the point when the revenue and the total costs are equal, this is, when the profit is zero. Write the equation and solve:

x = 21,000 + 0.25x

x - 0.25x = 21,000

0.75x = 21,000

x = 21,000 / 0.75

x = 28,000

Hence, the break-even quantity is 28,000 pens.

2. Price pens must be sold to obtain a monthly profit of $18,000

Profit = Revenue - Total cost

P(x) = R(x) - C(x)

P(x) = x.p - [ 0.25x + 21,000]

Where p is the price.

P(x) = x.p - 0.25x - 21,000

Substitute the quantity demanded, x, with 31,000, and the profit, P(x) with 18,000:

18,000 = 31,000p - 0.25(31,000) - 21,000

Solve for p and compute:

31,000p = 18,000 + 7,750 + 21,000

31,000 p = 46,750

p = 1.51

That is $1.51 per pen.

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2 years ago

Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,9

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Answer:

Borrow $6,300.

Explanation:

The company has $10,100 cash at the beginning of June

and anticipates $31,900 in cash receipts

and $38,300 in cash disbursements during June.

This gives a positive balance of (10,100 + 31,900 - 38,300) $3,700 and

To maintain the $10,000 required balance, during June the company must:Borrow $6,300.

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3 years ago

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