Answer:
The correct answer is letter "E": creating a wholly owned subsidiary.
Explanation:
A Subsidiary is a corporation owned 50% or more by another corporation. The owning corporation is usually called the parent or holding company. A company that is 100% owned and controlled by a parent company is called a wholly-owned subsidiary. The benefit of working with a wholly-owned subsidiary is that the parent takes full control of the operations of the organization, just like in the parent branch which ensures all the processes and strategies of the firms will be applied in the subsidiary.
<em>Technology companies tend to adopt the wholly-owned subsidiary strategy</em> to make sure they do not lose control over their technological products.
Based on the beginning equity and the total revenues and expenses, the company's ending equity is $324,000
<h3>What is the ending equity?</h3>
First, find the net income:
= Revenue - expenses
= 72,000 - 34,000
= $38,000
The ending equity is:
= Beginning equity + net income
= 286,000 + 38,000
= $324,000
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Answer:
The correct answer is letter "D": the more substitutes a good has.
Explanation:
Price elasticity of demand is the result of the relation between changes in price and quantity demanded for a good or service. <em>Price elasticity of demand is calculated dividing the percentage change in quantity demanded by the percentage change in price.</em> If the result is equal to or greater than 1, the demand is elastic. This situation implies a minimum change in price will affect by far the quantity demanded of that good or service.
Thus,<em> products with many substitutes are elastic because a minimal change in their price would represent a large change in quantity demanded since consumers will find similar products that satisfy their needs in the same proportion.</em>
Answer:
$1.2
Explanation:
Predetermined overhead rate is the rate that is used to apply estimated overhead to job orders or products.
The predetermined overhead rate for 2020 is calculated as ;
= Estimated total manufacturing overhead costs / Estimated Direct labor cost
= $882,000 / $735,000
= $1.2
Therefore, the predetermined overhead rate for 2020 is $1.2
$20,000 is correct
When they ask for the amount the bank can "create" they are really asking for the <u>change in the money supply</u><u>.</u> They are required to reserve 20%, so they can loan out 80%
80% * $5,000= $4,000
Now, the bank can use this $4,000 by loaning it out to other customers and earning interest on those loans. The customers can use the money for investments or spending. So the first little deposit of $5,000 has now spread to a lot more people and created a lot more opportunity for growth. This is known as the <u>multiplier effect.</u> To put the multiplier effect in dollar amounts, we need to know how much we are multiplying by. This is called the <u>deposit multiplyer</u> and the formula is 1/(required reserve ratio). The reserve ratio here is 20% or .2
1/(.2)= 5
Our deposit multiplier which will calculate the multiplier effect on the money supply (aka the amount the bank can "create") is 5
5* $4,000= $20,000
