Answer:
Monopoly
Explanation:
Monopoly is a market structure where only one firm controls the market share and earn abnormal profits. In a monopoly market, a producer or a supplier earn abnormal profits, which is why they don't try to control the cost of production because they can sell the good at any price. This situation where the cost of production increases, it creates X-inefficiency.
Answer:
A, $12,000
Explanation:
Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.
To calculate the profit from the sale of the bicycles, we use the formula
Profit = (marginal cost x quantity of bicycles) - Expenses.
we have,
Profit = ($200 x 100) - $8,000
Profit = $20,000 - $8,000
Profit = $12,000.
Cheers.
Answer: a bad debt expense
Explanation:
The estimated expense for accounts that may not be collected is referred to as. bad debt expense. Joyce Corp uses the percentage-of-receivables method to account for bad debt expense. Joyce determines that a customer account of $20,000 should be written off as uncollectible
PART I
Answer:
The business idea is that of a Bakery that specializes in pastry that is mixed with fruits.
Explanation:
SWOT
Strengths
- Unique Value Proposition which is healthier bread and cake recipes
- 20 years experience in baking which translates to strong industry knowledge
Weaknesses
- Insufficient Equipment to go with
- Weak or zero visibility for new business
Opportunities
- Little or no competition as the recipes are unique to me
- Huge demand for healthier pastry especially in my current location
Threats
- The industry is heavily regulated and may be shut down if there are compliance issues
- One competition that knows what they are doing and combines pastry with healthy drinks such as smoothies. We don't do smoothies.
Part II
Answer:
The persons I would give the business plan to are:
- An angel investor who I met on LinkedIn who supports small businesses and start-ups
- My banker of over 20 years
- I would give the business plan to my family members because they are the easiest people to raise funds from and also because family, can decide to contribute in cash or in-kind with no interest required.
- I would give the business plan to an angel investor because their funds are cheaper than those of the banks though a little more difficult to come by
- Banks always have the funds but the funds come at a higher cost than the first two.
Cheers
