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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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<h3>What is Economic systems?</h3>

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<h3>What is represented by economic system?</h3>

An economic system is a means with the help of which the government plans and issues accessible services, resources, and things across the country. Economic systems manage aspects of production, combining wealth, labour, physical resources, and industry people.

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Complete Question is,

A. How much resources are available in the economy and where they are located

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1 year ago

An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in

marysya [2.9K]

Answer:

Value of the bond = $862.013

Explanation:

The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of the bond can be worked out as follows:

Step 1

Calculate the PV of Interest payment

Present value of the interest payment

PV = Interest payment × (1- (1+r)^(-n))/r

Interest payment = $40

PV = 40 × (1 - (1.05)^(-12×2)/0.05)

= 40 × 13.7986

= 551.945

Step 2

PV of redemption Value

PV of RV = RV × (1+r)^(-n)

= 1000 × (1.05)^(-12×2)

= 310.067

Step 3

Calculate Value of the bond

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Value of the bond = $862.013

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3 years ago

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated 7 year

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Answer:

Part a

2021 = $7,000

2022 = $6,000

Part b

2021 = $5,250

Explanation:

Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.

Step 1

Some of digits calculation :

Year Digits

2021 7

2022 6

2023 5

2024 4

2025 3

2026 2

2027 1

Total 28

Step 2

Determine the depreciable amount

Depreciable amount = Cost - Residual value

= $40,000 - $12,000

= $28,000

Step 3

Depreciation expense calculations

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assuming the equipment was purchased on March 31, 2021

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3 years ago

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Answer:

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