It is called the vertical integration. It is where an organization grows its business operations into various strides on a similar creation way, for example, when a maker possesses its provider or wholesaler. vertical integration can enable organizations to lessen costs and enhance efficiencies by diminishing transportation costs and decreasing turnaround time, among different favorable circumstances.
Answer:
In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.
Explanation:
Under cost recovery method, the amount which is actually received was recorded in the books of the accounts. Rest will not be considered.
The Installment receivables should be computed by a formula which is shown below:
= 2017 Merchandising costing - 2017 sales collection
= $32,500 - $19,100
= $13,400
Thus, In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.
Answer and Explanation:
The journal entries are shown below:
On Aug. 1
Merchandise Inventory $75,000
To Accounts Payable $75,000
(Being the purchase of merchandise inventory is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it also increased the liabilities
On Sept. 1
Accounts Payable $75,000
To Notes Payable $75,000
(Being the issued of note payable on the account is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the note payable as it increased the liabilities
On Nov. 30
Notes Payable $75,000
Interest Expense $1,125 ($75,000 × 6% × 90 days ÷ 360 days)
To Cash $76,125
(Being cash paid is recorded)
For recording this we debited the note payable and interest expense as it decreased the liabilities and increased the expense and credited the cash as it decreased the assets
Answer: A
Explanation:
Management decisions by the ability to engage in proxy fights. A proxy fight, also known as a proxy contest or proxy battle, refers to a situation in which a group of shareholders in a company joins forces in an attempt to oppose and vote out the current management or board of directors. In other words, a proxy fight is a battle between shareholders and senior management for control of the company.
Corporate shareholders are best protected from incompetent management decisions by the ability to engage in proxy fights.
Answer:
C. maintain position and after the market growth slows use the business to provide cash flow
Explanation:
Stars in the BCG Growth Share Matrix refer to the goods that have a big market share and bring more revenue to the company but they also require to invest a lot of money. Because of that, companies try to keep their place as long as possible but when the market slows down, they take the cash flow from the product to increase their profits. According to that, the answer is that in the BCG Growth Share Matrix, the suggested strategy for Stars is to maintain position and after the market growth slows use the business to provide cash flow.
The other options are not right because milk them to finance other businesses and not invest in them and to shift cash flow to other businesses is not a suggested strategy for starts because they can provide a lot of money. Also, invest large sums to gain a good market share is not right as stars are not always able to generate a positive cash flow and you can end up losing a big amount of money.
