Answer:
C. a long-term loan from a bank
Explanation:
A loan or credit facility is suitable when a person is unable to pay in cash or by check. Lenders such as banks and credit unions offer credit facilities to their customers. These institutions charge interest on loans advanced.
When planning for a capital intensive purchase, a long term bank loan is suitable. Banks can extend credit facilities for huge amounts of money. The monthly repayments and interest rates for a long-term loan are usually low, making it affordable to many borrowers.
Answer:
d.) laissez-faire
Explanation:
Laissez-faire is one of Adam Smith's ideas which made Mark think of starting a restaurant because the business is free from government intervention. Also because Mark would be the sole owner of the business.
Answer:
The Net Cash Flow is $9,300,000.
Explanation:
A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:
Ruston Company
Statement of Cash Flows
For the Year 2020
<u>Details $'000 </u>
Net Income 9,100
Adjustments from Operating Activities <u> 1,100 </u>
Net Cash Flow from Operating Activities 10,200
Net Cash Flow from Investing Activities (4,300)
Net Cash Flow from Financing Activities of <u> 3,400 </u>
Net Cash Flow <u> 9,300 </u>
Since the amount is in thousands, that implies that the Net Cash Flow is $9,300,000.
Answer:
b. The refusal has an anti competitive effect on the market.
Explanation:
When a company that sells certain products fails to sell same to a retailer who deals in same products, such is said to have anti competitive effect on the market. The aim is to reduce competition in the market.
This type of refusal would always lead to price fixing, boycott.etc. When there is price fixing, it would lead to customers being unable to buy the product due to high price.
Products that are evenly distributed and not selective would increase competition in the market place such that customers would be able to purchase such product in any retail shop that sells the products.
Answer: Monetary unit assumption
Explanation: The monetary unit of assumption states that every transaction of the business can be expresses in relation to monetary units and these units will be stable over time. The key point in this assumption is that it assumes monetary units to be stable and dependable.
In the given case, Lawton records transactions in dollars and disregards changes in value of dollars over time. Hence, we can conclude that Lawton is following monetary unit assumption.
