Two firms, such as a small local, family-owned Italian restaurant and Olive Garden, share few markets and have little similarity in resources, but are nonetheless direct and mutually acknowledged competitors - False
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Explanation:</u></h3>
A state of rivalry that exists between any company that sells identical or similar products and services refers to the competitors. There are two types of competitors such as direct and indirect competitors. Direct competitors are the firms that sells same kind of goods and services. They also focus on the same market segment and also customers.
Indirect competitors refers to those companies that sells similar goods and services but, they will not be having similar end goals. The given statement is false since the firms given are sharing only few of the markets and also have less similarity in the resources. Hence they cannot be competitors either directly or indirectly.
Answer:
The answer is 3 units
Explanation:
Break even sale is the amount of sales a firm or business needs to sell to break even , that is, the amount to sell to neither make profit nor loss.
Break even sales = Fixed cost ÷ ( unit sales - variable costs)
$30/($25 - $15)
$30/$10
=3 units
Break even sales is 3 units. That means Margaret needs to 3 units of hand-knit scarves to neither make profit or loss. Units above 3 will result into profit making while units below 3 will result into loss making.
Answer:
FUTA = $168
SUTA = $1,866.24
Explanation:
As per the data given in the question,
FUTA
= $7,000 × 4 employees × 0.6% = $168
SUTA
Gilfin, Laubach and Loftin earning excess = $14,000
So, will take maximum $14,000 for each of them
Moravec is less than $14,000 therefore will take the actual amount
Earnings = ($14,000 × 3 × 3.6%) + ($9,840 × 3.6%)
=$1,866.24
Answer:
D. Decrease by $700,000.
Explanation:
The computation of the effect on the total stockholder equity is as follows
Given that
Number of shares is 20,000
Per share $35 recorded at a cost
Own shares at par is $20
As we know that if we purchased our own stock so it would be called as a treasury stock and the same is to be deducted from the shareholder equity as it is a contra equity account that reduce the equity balance
Now the effect would be
= 20,000 shares × $35
= $700,000
Hence, it is decreased by $700,000
Answer:
Each year, the employer awards its top salesperson an all-expense-paid trip to Jamaica.
- This should be considered as part of the employees' compensation (and the employee should be taxed), therefore, the company can deduct 100% of it.
The employer has a cafeteria for its employees where meals are furnished at cost.
- Cafeteria meals are not included in the 50% deduction.
The employer sponsors an annual Labor Day picnic for its employees.
- This is considered a recreational activity paid by the employer, so the 50% deduction does not apply.
Every Christmas, the employer gives each employee a fruitcake.
- It is a fringe benefit, although I doubt that the employees are taxed for receiving a fruit cake. There is no 50% deduction. (referred to as de minimis fringe benefit)
The taxpayer gives business gifts to her clients at Christmas.
- Business gives are not subject to a 50% deduction, instead they are subject to a $25 limit.
