Answer:
Leased Fee Interest
Explanation:
Leased Fee Interest refers to the right of the lessor to lease his property to a tenant and earn rental income in addition to the value of the asset which is reverted back to the lessor upon expiry i.e reversionary right.
The total of leased rental payments and reversionary value is termed as Leased Fee Interest.
A lease is a contract wherein one party i.e the lessor agrees to lend the asset to other party i.e the lessee in exchange of periodic payments in the form of lease rentals usually without transferring the ownership of the asset.
Answer:
The additional sale will not conflict with regular sales.
Explanation:
Accept business at a special price if the additional sales conflict regular sales. That is, special price must maintain the status quo or improve it.
Answer
Financial advantage from further processing $31
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>
<em> $</em>
Sales revenue after the split off point( 64+64) 128
Sales revenue at the split-off point (16+47) <u> 63</u>
Additional sales revenue 65
Further processing cost ( 15+19) <u>(34
)</u>
<em>Net income after further processing 31</em>
Financial advantage from further processing $31
Answer:
d) <u>cash flow</u>
Explanation:
Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.
The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.
Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.
This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.
