An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.
Capital Intensity Ratio = Total Assets/Total Revenue
Return on assets = Net income/Total Assets
Total Assets = Net income/Return on Assets= $389,100/0.086
Total Revenue = Net income/Net Profit Margin = $389,100/0.028
Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33
This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.
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Answer:
B. business format franchise
Explanation:
Under the business format model, the franchisee adopts the entire business operating systems of the franchisor. It means that the franchisee uses the franchisor's trademark, plans, and procedures. Goods and services offered by the franchisee will be identical and will bear the same prices as those of the franchisor.
Joseph plans to operate a business format model of a franchise. The franchisee will have to meet Joseph's standards of operations. For that to happen, Joseph must provide the following.
- Initial training
- Standardize build-out plans
- Operations manuals
- Continuous support
- Point-of-sale system education
- Key functionalities
Joseph has a responsibility to ensure the franchisee adhere to the standards agreement. It means he will have a supervisory role in management for the franchisee.
In return, Joseph will be earning commissions from each franchisee based on the income of each of them.
Answer:
B. - 5.71%
Explanation:
Given that
Purchase price = 1000 × 35 = 35000
Selling price = 1100 × 30 = 33000
Recall that
ROI = Net profit/total investment × 100
And that
Net profit = selling price - purchase price
= 33000 - 35000
= -2000
Therefore,
ROI = -2000/35000 × 100
= - 0.05714 × 100
= - 5.71 %
Thus, total return on investment is -5.71%
Answer:
Credit life Insurance
Explanation:
The scenario describes Credit life insurance
This is a form of insurance policy that that is designed to pay off the balance on a policy holder's outstanding loan in case of death. It is designed for the protection of lender and heirs who are co signers from loss in case of the death of the borrower.
The insurance is liable to the balance on the loan as at the time of the death of the borrower.
Answer:
The demand for cereal is elastic.
The demand for the magazine is inelastic.
Explanation:
The price elasticity of demand is the degree of responsiveness of quantity demanded to change in price. A negative price elasticity implies that the product is a normal good.
The price elasticity of demand for cereal is −1.03. This means that the demand is price elastic. An elastic demand implies that a change in price will cause more than proportionate change in quantity demanded.
The price elasticity of demand for a particular magazine is −0.72. This means that the demand is price inelastic. An inelastic demand implies that a change in price will cause less than proportionate change in the quantity demanded.
