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LekaFEV [45]
3 years ago
9

In purchasing an existing business, Alice has decided to lease the equipment and fixtures from the original owner rather than pu

rchasing it outright to save money initially. This is an example of ______.
Business
1 answer:
charle [14.2K]3 years ago
7 0

Answer: thinning the assets

Explanation:

Thinning the assets refers to the reduction of the burden of an asset on the buyer by the seller do that the business can be priced at a reasonable value for the buyer. It is done to make a business more affordable.

Since Alice decided to lease the equipment and fixtures from the original owner rather than buying it outright to save money initially, this is thinning the assets.

You might be interested in
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
sleet_krkn [62]

Answer:

Osaka ROI is 28%

Yokohama ROI is 18%

Explanation:

The formula for return on investment =net income/average operating assets*100

For Osaka division:

net income is $749,000

average operating assets is $2,675,000

return on investment=$749,000/$2,675,000*100

                                  =28%

For Yokohama

net income is $3,330,000

average operating assets is $18,500,000

return on investment=$3,330,000/$18,500,000

                                  =18%

Even though Yokohama has a higher net operating income ,the Osaka division recorded a better performance using ROI as  a performance metric,which shows profit computation is an absolute figure which does not consider the amount of resources invested in  order to earn the profit

6 0
4 years ago
Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) f
larisa [96]
Vilolin bee is the greatest

8 0
3 years ago
Suppose that Greece and Sweden both produce oil and stained glass. Greece's opportunity cost of producing a pane of stained glas
Wewaii [24]

Answer: Greece; Sweden

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country or firm as compared to the other country or firm.  

Greece's opportunity cost of producing a pane of stained glass = 4 barrels of oil

Sweden's opportunity cost of producing a pane of stained glass = 8 barrels of oil

Therefore, opportunity cost of producing a pane of stained glass is lower in Greece as compared to the Sweden.

Hence, Greece has a comparative advantage in producing stained glass.

Greece's opportunity cost of producing a barrel of oil = \frac{1}{4}

                                                                                          = 0.25 pane of stained glass

Sweden's opportunity cost of producing a barrel of oil = \frac{1}{8}

                                                                                          = 0.125 pane of Stained glass

Therefore, opportunity cost of producing a barrel of oil is lower in Sweden as compared to the Greece.

Hence, Sweden has a comparative advantage in producing Oil.

4 0
3 years ago
Because it is a. neither excludable nor rival in consumption, a tornado siren is a common resource. b. rival in consumption but
astra-53 [7]

Answer:

D, neither excludable nor rival in consumption, a tornado siren is a public good.

Explanation:

A tornado siren is a siren that is used to give emergency warnings to a large population of an impending danger or danger that has passed.

A tornado siren otherwise known as the civil defense siren is of public good and as such is not a rival neither can it be excluded from consumption.

Cheers

8 0
3 years ago
Jack has $1,000 to invest. He has a choice between municipal bonds with an interest rate of 4% or corporate bonds with an intere
neonofarm [45]

Answer:

Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%

Explanation:

Hi, the formula to find the after-tax rate of return of any taxable income is as follows.

r(AfterTax)=r(BeforeTax)*(1-Taxes)

Therefore, in the case of the municipal bond.

r(AfterTax)=0.04*(1-0.25)=0.03

So, the after-tax rate of return of the municipal bond is 3%.

And for the corporate bond is.

r(AfterTax)=0.06*(1-0.25)=0.045

And the after-tax rate of return of the corporate bond is 4.5%.

It means that taxes on municipal bonds are:

Taxes= Return(BeforeTax)-Return(AfterTax)

In the case of municipal taxes:

Taxes=0.04-0.03=0.01

1% taxes for municipal bonds

In the case of corporate taxes:

Taxes=0.06-0.045=0.015

1.5% taxes for corporate bonds

Best of luck.

7 0
4 years ago
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