Answer:
A. unit elastic
Explanation:
The price elasticity of supply can be calculated by a formula as below:
+) Price elasticity of supply = Changes in supplied quantity/ Changes in prices <em> = (%ΔQs)/(%ΔP)</em>
When price = $1, the quantity supplied is: Qs = p = 1
When price = $3, the quantity supplied is: Qs = p = 3
So that when price increases from $1 to $3, the quantity supplied changes from 1 to 3.
=> Changes in supplied quantity is: 3 -1 = 2
Changes in price is: $3 - $1 = $2
<em>=> Price elasticity of supply = 2/2 =1 </em>
When the price elasticity of supply is equal exactly to 1, the product is considered to be <em>unit - elastic. </em>
<em>So that A is the true answer.</em>
Answer: Please refer to the explanation section
Explanation:
Bonds are another form of debt financing, When a Company issues Bonds , the will be Obligated to make interest payment as per the bond agreement and also Repay the Face Value of the Bond at the end of the period (when the Bond reaches its maturity period). The Face Value of a Bond is used when calculating Interest Payment. Interest Payments of a Bond (also Known as Coupon payments) is calculated by Taking the Face Value of a Bond and Multiply it by the effective interest rate, that is an annual interest rate that is adjusted by the number of times interest payment are made in a year.
Bond Interest Payments or coupon Payments are recognised as Interest expense in the income statement as they represent interest expense incurred resulting from a Company's Liabilities.
We will assume that the amount of $431 721 is the Face Value of the Bond since the question didn't specify.
Market interest rate = 9%. Interest payment are made in every 6 months or twice a year (semi annually), The Annual interest rate of 9% must be divided by 2. Therefore the effective interest rate = 9%/2 = 4.5% semi annually
Face Value = $431 721
r = 9%/2 = 4.5%
Journal entries
1 January 2021
Dr Bank $431 721
Cr Bonds Long term Liability $431 721
recording bonds issue
30 June 2021
Dr Interest expense $19427.45
Cr Bank $19427.45
recording the first interest payment. Cash decreases when Payments are made thus we process a credit entry to the bank to indicate that cash is decrease when interest expense is paid
30 December 2021
Dr Interest expense $19427.45
Cr Bank $19427.45
recording the second interest payment
Learning effects occur when insights gained by employees enhance their work performance. Learning effects refer to the process by which knowledge or experience increases productivity and results in higher salaries. By gaining insights into how something can be done better and more efficiently, workers can increase their productivity and earn more wages simultaneously.
Answer:
1. using plans as a standard for measuring performance.
Explanation:
Strategic planning is an important process that enables a business or an organization to have a sense of direction, goal orientation, and also enables them to evaluate and measure progress.
It is important when carrying out the strategic planning process to first focus on clarifying and developing the vision, mission and objectives of the business before moving on to strategy formulation, this helps to give a sense of direction.
In the process of strategic planning, involving key employees cannot be overemphasized. Giving key employees the chance to be involved in the planning process will enable them to connect to the business and set them up for success.
Apart from the fact that strategic planning provides a sense of direction, it also enables a business to outline goals that can be measured, hence providing a standard for measuring performance.
Answer:
PEST and SWOT
Explanation:
PEST and SWOT are closely related approaches to business analysis. PEST is an acronym that stands for political, economic, social and technological influences on a business. SWOT is a situational analysis tool for company leaders that involves assessing strengths, weaknesses, opportunities and threats.