Which of the following is a function of a commercial bank? *

1. On December 31st, 2012, Bingo Corp. borrowed $50,000 from a bank. Half of the loan was to be repaid in 2013, and the other ha

olga2289 [7]

Answer:

undervalued assets an liabilities by 50,000

Explanation:

The financial statement for the fiscal year ended on December 31th, 2012

will have the following mistake:

Liabilities are undervalued by 50,000

Cash wll be undervalued by 50,000

As the note payable is not recorded neither the cash receipts from the loan.

Because this transaction is missing, we are not doing a correct representation of reality. This account will be undervalued.

4 0

3 years ago

Suppose you pick people at random and ask them what month of the year they were born

Ray Of Light [21]

What is the question you are asking

8 0

3 years ago

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a

zepelin [54]

Answer:

a. $700,000

b. 6/7 or 85.7%

c. No they will not.

Explanation:

a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.

Incremental income = Revenue with Jacobs - Revenue without Jacobs

= 1,000,000 - 400,000

= $600,000

Jacobs earnings = Normal designer earnings + incremental income

= 100,000 + 600,000

= $700,000

b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.

Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.

Proportion of Jacobs salary that is economic rent = $\frac{Economic rent}{Jacobs annual earning}$

= $\frac{600,000}{700,000}$

= 6/7 or 85.7%

c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.

8 0

3 years ago

Suppose there are 6 firms in an industry with the following market shares. if the two smallest firms want to merge, how will the

Semenov [28]

The firms will not be allowed to merge if the two smallest firms want to merge. Thus, option D is correct.

<h3>What is a merger?</h3>

Anytime two businesses combine to create a new business, it is called a merger. Businesses merge in order to enhance their sales volume, diversified their product portfolio, decreased risk and rivalry, and maximize profits.

If the firm wants the people to merge the two companies then that means that there will be some issues that being there in the merger as they will imply that the corporate will have to take permission. Therefore, option D is the correct option.

Learn more about mergers, here:

brainly.com/question/1086715

#SPJ4

The question is incomplete, the complete question will be:

Firm 1: 30 Firm 2: 25 Firm 3: 25 Firm 4: 10 Firm 5:7 Firm 6:3

The firms will be challenged because the merger will raise the HHI by more than 50 points.

The firms will be allowed to merge and compete with the larger firms.

The firms will be challenged because the merger will raise the HHI by more than 100 points.

The firms will not be allowed to merge

The firms will be challenged because the merger will raise the HHI by more than 250 points.

3 0

1 year ago

Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and

Taya2010 [7]

Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".

Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.

3 0

3 years ago