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Alex777 [14]
3 years ago
15

Fervana Autos Inc., a large automobile company, made an initial small investment in a startup company that was developing a sola

r-powered car. This gave Fervana Autos controlling interests in the startup company. However, Fervana Autos had no obligations to make continued investments in the experiments of the startup company. It could invest in small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Fervana Autos would have the right to buyout the startup company. This approach to strategic alliance is referred to as _____.
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer:

real options perspective

Explanation:

A real options perspective means that the investor has the right but not the obligation to invest in the other company, and/or has the right to buy it, but it is not required to do so. In this case, Fervana can invest if it considers it suitable or it can buy the start-up, buit it doesn't need to do anything if it doesn't want to.

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Tom is responsible for ordering hardware for a custom home his company is building. The contractor installing the hardware is sc
Vilka [71]

Answer:

A

Explanation:

Free slack can be described as the total amount of time a project can be delayed without affecting the project's completion time . Tom and the contractor share a slack time of 10 days

Total slack measures the total amount of time a project can be delayed before the project's completion.

Functional slack measures the amount of time that each activity in a project can be delayed without affecting the project's completion time.

4 0
3 years ago
Prepare adjusting entries for the following transactions.
g100num [7]

Answer:

1. Debit Depreciation expense  $1,340

  Credit Accumulated depreciation  $1,340

2. Debit Interest expense  $275

   Credit Accrued Interest  $275

3. Debit Supplies expense  $450

   Credit Supplies Account  $450

4. Debit Unearned Service revenue  $3,100

   Credit Service revenue  $3,100

5. Debit Salaries expense  $900

   Credit Accrued Salaries  $900

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

It is recorded by debiting depreciation and crediting accumulated depreciation.

When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.

When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.

Amount of supplies used up = $550 - $100

= $450

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Earned revenue = $4,000 - $900

= $3,100

5 0
3 years ago
Last year, Jose had to invest. He invested some of it in an account that paid simple interest per year, and he invested the rest
VladimirAG [237]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete. We do not have the rate interest for both accounts. We also do not know how much is invested in each account. The question also has a typo, the question says "he invested some of it in an account that paid simple interest per year and invested the rest in an account that paid simple interest per year". We will make some assumption in order to provide a proper solution to this question

Assumptions:

Firstly we will assume he invested in a simple interest account and a compound interest account. assume

The total investment is $1000. $5000 is invested in each account.

Therefore the  Present Value (PV) is $5000 for both accounts

Interest rate (R) is 10% per year for simple interest and 10% per per year   Compounded monthly for compound interest account

Period (n) = 1 year

Simple Interest Account

Future Value (Simple Interest) = P(1 + Rn)

Future Value (Simple Interest) = $5000(1 + 0.10 x 1) = $5500

Interest from Simple interest account = 5500 - 5000 = $500

Compound interest Account

Future Value (Compound interest) = P(1 + R)^n

Future Value (Compound interest) = $5000(1 + 0.10/12)^12 = 5523.565337

Interest form Compound interest account = 5523.57 - 5000 = $523

compound interest account earned more interest than Simple interest Account

5 0
3 years ago
Read 2 more answers
Overton, Inc. had the following transactions in 2017, its first year of operations: • Issued 15,000 shares of common stock. Stoc
dimaraw [331]

Answer:

total stockholders' equity =  $660000

Explanation:

given data

Issued = 15,000 shares

par value = $0.01 per share

issued = $39.00 per share

net income = $300,000

Paid dividends = $15.00 per share

to find out

total stockholders' equity

solution

we get here common stock that is express as

common stock = 15,000 × $39

common stock =  $585000

and

dividends is = $15 × 15000

dividends = 225000

so

total stockholders' equity will be

total stockholders' equity = common stock  + net income - dividends

total stockholders' equity = $585000 + $300,000 - 225000

total stockholders' equity =  $660000

8 0
3 years ago
The priority of the product in agile is more significant than in traditional project management, as the outcome, or product, wil
larisa [96]

Answer and Explanation:

True

3 0
3 years ago
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