Answer:
A business management degree focuses more on planning and organizing, whereas a degree in business administration provides a broad background and then allows the student to focus on a specialized area of business.
Acid test or quick ratio is the liquidity ratio that is most stringent because it
eliminates inventory in its measurement.
Acid test ratio can be calculated by:
<u>Current assets - inventory</u>
current liabilities
Acid test ratio eliminates the inventory which is the least liquid asset from
current assets. This ratio help companies determine how fast it can convert
its assets into cash in order to take care of its liabilities.
Read more about Acid test ratio on brainly.com/question/25814739
Answer:
C. the employer defamed the former employee because the employer was recklessly indifferent to the truthfulness of the statements made
Explanation:
The simple and straightforward ruling by the court would be that the employer defamed the former employee because the employer was indifférent to the truthfulness or factual correctness of the information given to him.
The court would have clear grounds to give the former employee reprieve because the employer was not suitably interested in seeing company records and was quite content with hearing and basing a judgement based on word of mouth only.
Answer:
In general, the <u>higher</u> the risk of a firm as perceived by its existing and potential investors, the greater is the firm’s weighted average cost of capital (WACC).
- If a firm is considered to be risky, they will get debt at a high rate to compensate for the risk making WACC greater.
The calculation of a firm’s weighted average cost of capital should be based on the <u>after-tax</u> cost of the dollar of financial capital raised.
- Interest is tax deductible so WACC is calculated net of taxes to cater for this.
It is generally believed that the proportions, or weights, used in the calculation of a firm’s weighted average cost of capital should be based on the market values of the firm’s capital sources. This is because the market value weighting system is more consistent with maximizing the value of the firm’s <u>Shareholder wealth.</u>
- Market Values are the true reflection of shareholder wealth and this is what the company should aim to maximise.
Although the use of market value weights is theoretically superior to the use of book value weights in the calculation of a firm’s weighted average cost of capital (WACC), firms often use book value weights due to their relative stability compared to the daily changes in market values. <u>True</u>
- Market values tend to fluctuate quite often so it is easier for companies to use book value amounts.
A firm’s new investments, existing assets, and capital structure affect its overall degree of risk and, in turn, its weighted average cost of capital. <u>True</u>
- The assets and potential assets that a company has as well as how it funded those assets determine just how risky the company is and as earlier mentioned, the riskier the firm, the higher the WACC so risk does have an effect on WACC.
Answer:
B. 185.000
Explanation:
Fisrt. The forecast of the account begins with a balance of 65,000, during the year 195,000 were paid, this means that an expense of 130,000 is recorded, (195,000 - 65,000, since the expense of 65,000 was previously recorded)
Second. If at the end of the year a provision of 55,000 is determined, on the other hand the expense must be recorded for the same amount.
Then 130,000 of expenses plus the forecast of 55,000 = 185,000
