Answer:
D) Broker
Explanation:
A broker is a person who coordinates buyer and seller. A broker tries to improve communication between those two parties so that the transaction is successful, but he does not take part in the transaction and only charges a small comission fee.
In the question, Tony is a classical example of a broker because he does not take any equipment for himself, does not incurr any debt, and only coordinates the parties, and likely charges a small fee after the transaction is finished.
Answer:
(B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
Explanation:
Net present value (NPV) simply differentiates between the present value of cash inflows and the present value of cash outflows.
And the rule is that a company should only invest or be engaged in any business that has a positive net present value and exclude themselves from businesses that have been negative net present value as this can increase the company's income.
Answer:
The statement that is not true about dividends is:
Capital gains taxes are lower than dividend taxes, and they can be deferred
Explanation:
Dividends is the money paid to investors and shareholders from the profit the company they invested in has made within a period of time.
Dividends can be earned from investing in stocks, mutual funds or exchange-traded funds and it is a taxable income.
Capital gains on the other hand are the incremental amount of value appreciation an asset accrues when it is purchased and after it is sold. This accrued earnings is also a taxable income.
The tax information is included in Schedule B, Form 1040.
Capital gains taxes are not lower than dividend taxes because the U.S. tax code gives treats dividends and capital gains the same.
Answer:
Purchases= 20,675 pounds
Explanation:
Giving the following information:
Production:
Feb= 20,900
Mar= 20,000
One pound of material is required for each finished unit.
Desired ending inventory= 25% of the following month's production needs.
<u>To calculate the purchase required for February, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 20,900 + (20,000*0.25) - (20,900*0.25)
Purchases= 20,675
