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3 years ago

What is the economic process of withdrawing investments from low profit sectors and investing in new activities?

Business

1 answer:

frozen [14]3 years ago

8 0

Answer:

Creative destruction.

Explanation:

In 1942, the term creative destruction was first to be used by the notable Austrian economist known as Schumpeter Joseph.

Creative destruction is the economic process of withdrawing investments from low profit sectors and investing in new activities.

This ultimately implies that, creative destruction is a concerted effort towards the deliberate destruction or dismantling of long standing products, processes, practices, procedures or services in order to give room for innovative ideas and an improved technique for the production (manufacturing) of goods and services. Thus, the old technology or methods of production are dismantled so as to pave way for new technologies, procedures, goods and services.

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Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave

anastassius [24]

Answer: Discharged

Explanation:

Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.

8 0

3 years ago

Real property subject to a lien is referred to as:

antoniya [11.8K]

The owner of the property, who allow the lien, is relate to as the Lienee and the person who has the advantage of the lien is referred to as the Lienor or Lien holder.
In the United States, the term lien usually pertain to a wide range of encumbrances and would involve other forms of mortgage or charge.

7 0

3 years ago

Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage

grigory [225]

Answer:

D. $156,000

Explanation:

Cost = $400,000

Residual value = $10,000

Useful life = 5 years

Now,

Annual straight line depreciation = $\frac{Cost-Residual Value}{Useful life}$

Annual straight line depreciation = $\frac{400,000 - 10,000}{5}$

Annual straight line depreciation = $\frac{390,000}{10}$

Annual straight line depreciation = $78,000

Annual depreciation expense is transferred to the accumulated depreciation. Thus, accumulated depreciation is sum of depreciation expense charged over the useful life of the asset.

Depreciation table has been constructed to compute the accumulated depreciation on 31st December 2017.

5 0

2 years ago

Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for

Kryger [21]

Answer:

Eller Equipment Co.

Income statement

Particular Amount($) Amount ($)

Sales revenue 940,000

Less: Cost of good sold (595,000)

Gross margin 345,000

Operating expenses

Salaries expenses 122,000

Operating expenses 65,000

Warranty expenses 9,200

Un-collectible account expenses 45,000

Depreciation expenses 3,000

Total operating expenses (244,200)

Operating income 100,800

Non-operating expenses

Interest revenue 6,200

Interest expenses (36,000)

Gain on sale of equipment 19,000

Total non-operating items (10,800)

Net Income $90,000

Balance Sheet

Assets Amount$

Current Assets

Cash 41,000

Accounts receivable 108,000

Less: Allowance for doubtful (19,000) 89,000

accounts

Merchandise inventory 101,000

Interest receivable 3600

Prepaid rent 38,000

Supplies 6,500

Notes receivable 32,500

Total current assets 311,600

Property Plant and Equipment

Equipment 243,000

Less: Accumulated depreciation (66,000) 177,000

Land 95,000

Total property plant and equipment 272,000

Total Assets 583,600

Liabilities and Stockholder Equity

Current liabilities

Account payable 55,000

Unearned revenue 47,000

Warranties payable 6,500

Interest payable 6,000

Salaries payable 68,000

Total current liabilities 182,500

Long-term liabilities

Notes payable 160,000

Total long-term liabilities 160,000

Stockholders equity

Common stock 110,000

Retained earning 131,100

Total stockholders equity 241,100

Total liabilities and stockholders equity $583,600

Workings

Retained earning = Beginning retained earning + Net income - Dividend

= 61,100 + 90,000 - 20,000

= 131,100

5 0

3 years ago

In an attempt to have funds for a down payment, Jan Carlson plans to save $3,700 a year for the next five years. With an interes

Sveta_85 [38]

Answer:

$20,857.24

Explanation:

This is an ordinary annuity question which can be solved using a financial calculator. The inputs are as follows;

Total duration of investment; N = 5

Interest rate per year; I/Y = 6%

Recurring annual payment; PMT = 3,700

One time cashflow; PV = 0

then compute the future value of the annuity; CPT FV = 20,857.244

Therefore, Jan will have $20,857.24 as down payment in 5 years.

7 0

3 years ago