Answer:
The explicit tax would Curtis incur on interest earned on the Initech, Inc. bond is $7,395
Explanation:
The computation of the explicit tax is shown below:
= (Invested amount × interest rate with similar risk) × marginal tax rate
= ($425,000 × 7.25%) × 24%
= $30,812.50 × 24%
= $7,395
We consider the invested amount, similar risk interest rate, and the marginal tax rate. The paying interest rate would not be considered. Hence, ignore it
If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization-<u>The statement is true</u>
Explanation:
<u>Capacity management</u> can be defined as the act of management to ensure maximization of the product output and the potential activities associated with production,under all the given circumstances
The<u> capacity of a business measures</u> how much the business can achieve, produce, or sell within a given time period.It refers to the maximum output rate a company can produce
<u>Load capacity</u> is use to define the maximum demand, stress, or load that can be placed/leveled on a given system under normal or specified conditions for an extended period of time.
Answer:
Identify credit opportunities
Explanation:
The main goal of credit risk analysis is to identify the potential risks of lending out to a particular customer, whether it is a person or a firm.
In other words, is to identify whether a person or firm is credit worthy. From this concept of credit worhiness, we can affirm that the purpose of credit risk analysis is essentially to identify credit opportunities, since from the fact of finding out that a potential customer is credit worthy, a credit opportunity is created. (the loan is made to the credit worthy customer).
Answer:
e. There is a deadweight loss at the given production level.
Explanation:
A deadweight loss, also known as excess burden or allocative inefficiency, is a loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.
