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3 years ago

What is interest and what is it used for?

Business

2 answers:

Olegator [25]3 years ago

7 0

Answer:

Interest is the monetary charge for borrowing money—generally expressed as a percentage, such as an annual percentage rate (APR). Key factors affecting interest rates include inflation rate, length of time the money is borrowed, liquidity, and risk of default. Interest can also express ownership in a company.

I found that on internet XD

viktelen [127]3 years ago

4 0

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party.

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What is the worst result of a team leader failing to delegate responsibility or

drek231 [11]

Answer:

D. The team might feel that the leader does not trust their abilities

Explanation:

APEX

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3 years ago

Brief Exercise 3-3 Warner Company purchases $53,000 of raw materials on account, and it incurs $63,800 of factory labor costs. S

weqwewe [10]

Answer:

Explanation:

The journal entry is shown below:

Work in Process A/c - Assembly department A/c Dr $52,320

Work in Process A/c - Finishing department A/c Dr $41,440

To Manufacturing overhead A/c $93,760

(Being the overhead are allocated to the Assembly and Finishing Departments)

The allocation of the assembly department equals to

= Raw material × percentage of labor cost

= $32,700 × 160%

= $52,320

The allocation of the finishing department equals to

= (Factory labor cost - factory labor) × percentage of labor cost

= ($63,800 - $37,900) × 160%

= $25,900 × 160%

= $41,440

5 0

3 years ago

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slavikrds [6]

Answer:

meeeeeeeeeeeeeee

Explanation:

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3 years ago

Read 2 more answers

An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial elect

nadezda [96]

Answer:

Explanation:

The total value of the world market for this product, over the next 10 yes is minimum of 10 billion dollars.

In a year, this will be 1 billion dollars

To start the manufacturing, a plant worth 500 million dollars has to be erected. This is half of a billion, meaning that the company will make total revenue of 1 billion and have total cost of at least half a billion, in a year.

So the company's yearly profit will be equal to the amount used to erect a manufacturing plant

But hey, the company will pay workers and its workers are highly skilled (will deserve a high pay for their skills) so the company won't even make up to the above calculated profit in a year!

Now, owing to this situation - the situation whereby the expected revenue for the product is not so much above the cost of production - we prescribe CONCENTRATED or CENTRALIZED MANUFACTURING.

This is a case where just a single plant or manufacturing facility will be used to produce the microprocessors. Since the company is virtually just starting out, starting with one plant will be better for them. The customization of their product will be efficient here, as opposed to Decentralized manufacturing (where they'll use a number of plants).

Also, centralized/concentrated manufacturing reduces production cost per unit of the good.

The cost of production is also relatively lower and there is almost no leakage in the utility of resources at the plant because that is the only plant the company has. There'll b maximum utility of facilities and resources.

(B) What kind of locations should the firm favour for its plants??

Here, we consider the fact that the prevailing tariffs in this industry are currently low.

This means that we can focus on other things like:

Nearness of the plant to source of raw materials

Nearness to the required kind of labour (highly skilled labour)

Proximity to consumers (those who purchase the product)

Of these and more factors, I prescribe nearness to highly skilled labour. If raw materials also happen to be in the same region as the required workforce, that is a plus to the company.

The company will hence be better of with a Concentrated manufacturing strategy and a location that favours lower cost of factors of production (land, labour, capital, entrepreneurship)

6 0

3 years ago

Blossom Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2017, Blossom took part in the fol

Tanzania [10]

Answer:

See explanation section

Explanation:

Requirement A

Debit Cash $194,600

Credit Common stock - Par value $ 22,500

Credit Common stock - Additional paid-in-capital $172,100

Calculation:

Cash: 4,500 shares × $45 = $202,500

As the company's par value is $5,

Common stock - Par value: 4,500 shares × $5 = $22,500

As the market value of the stock is $45, the additional stock value = $45 - $5 = $40. Moreover, the company has issuance cost of $7,900

Additional common stock apart from par value minus the issuance cost = ($4,500 shares × $40) - $7,900 = $180,000 - $7,900 = $172,100.

The company issue common stock with a market value of $45 and issuance cost of $7,900 in exchange of cash.

Requirement B

Debit Land $50,600

Credit Common stock - Par value $ 5,500

Credit Common stock - Additional paid-in-capital $45,100

Calculation:

Land: 1,100 shares × $46 = $50,600

As the company's par value is $5,

Common stock - Par value: 1,100 shares × $5 = $5,500

As the market value of the stock is $46, the additional stock value = $46 - $5 = $41.

Additional common stock apart from par value = ($1,100 shares × $41) = $45,100.

Although the land is appraised for $49,000, due to the increased market price stock, it is valued more.

The company issue common stock with a market value of $46 in exchange for land.

Requirement C

Debit Treasury Stock $19,270

Credit Cash $19,270

Purchasing share from the stock market is known as treasury stock.

Calculation: Treasury stock = 470 shares × $41 = $19,270

Debit Cash $17,860

Credit Common Stock - par value $2,350

Credit Common stock - Additional paid-in-capital $15,510

Calculation:

As the company's par value is $5,

Common stock - Par value: 470 shares × $5 = $2,350

Additional common stock apart from par value = $470 shares × ($38 - $5) = $15,510.

The company issue common stock with a market value of $38 after purchasing those treasury stock at $41 per share.

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4 years ago