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Bezzdna [24]
3 years ago
9

Star Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1 before entering into an operating lease. Not

including any indirect effects on earnings, when Star Corp. records the operating lease, the immediate impact on these ratios is a(an):
Business
1 answer:
Fynjy0 [20]3 years ago
3 0

Answer:

The return on assets and debt/equity ratio does not change

Explanation:

An operating lease does not affect assets and liabilities. From the formula:

Equity = Assets - Liabilities, since both assets and liabilities are not affected (they remain unchanged) therefore the equity is also the same.

The debt/ equity ratio = total liabilities/total equity. Since liabilities and equity remain unchanged, therefore The debt/ equity ratio is the same.

Also the return of assets (earnings/assets) remain the same

You might be interested in
Why was 2007 considered the "Year of the Recall"?
Karolina [17]

Answer:

Most of the recalls were in the toy industry, which alarmed the public

Explanation:

2007 is known as the "year of the recall" because in that year a very high level of recalls were made by manufacturers but most importantly and alarmingly was the toy industry.

Every child, from being a baby to toddlers and preteens usually have one or more toys that they play with. 2007 seemed like the year to not get toys for kids as it became public knowledge that high amounts of lead was used in toy production that year.

Lead for all its usefulness is a poisonous  or dangerous substance to the human body talk more of a kid. The revelation of excessive lead content in toys caused a recall of toys by toy companies among other companies.

Also affected were art supplies, jewelries, etc.

Cheers  

8 0
2 years ago
Question 8 of 10
natulia [17]
Option A
A toothpaste maker claims that it’s product prevents more cavities that other brands.
8 0
3 years ago
Read 2 more answers
A collusive agreement between two firms is likely to break down when​ ____________. A. it is easy to punish cheaters. B. firms v
AnnZ [28]

A collusive agreement between two firms is likely to break down when detection of cheaters is difficult .

Option D

<u>Explanation: </u>

Collusion is a secret agreement between two or more parties to suppress open competition by misleading, lying or defrauding others of their rightfulness or achieving a goal prohibited by law that usually is to defraud or gain an unacceptable market advantage.  

It is an agreement between companies or individuals that divides a market establishes prices, limits or limits production opportunities. It can include "strike, pay manipulation, kickbacks or the freedom of the relationship between the two parties." All collusion-driven actions are considered null and void legally.

In the USA, Canada collusion is illegal because of antitrust legislation, but implicit collusion even now takes place in the method of price management and tacit agreement.  

Example: Google and Apple announced that both firms decided not to hire people to work together to stop wage growth in 2015, a statement against bullying collusion by employees.

3 0
3 years ago
Wilbur decides to sell his collection of rare stamps through an online auction site. When he is filling out the information abou
jasenka [17]

Answer:

Wilbur cannot rescind the contract based on his unilateral mistake.

Explanation:

Lets suppose that I made an offer of $1000 which you accepted to buy my car on a phone call for $1000 and later in the same day a person offered me more money for the same car and I sold the car to him. You went to court and I said that I mistakenly made an offer of $1000 which means that every person who revoke the clauses will make lame excuses in the court. If this act is permitted then the law gives the people free hand whatever they desire to do with the contract. So for this reason this act was considered unethical and the court said that the mistakes that are unilateral are not be rescind.

5 0
3 years ago
Dillon wants to advance quickly in his career with the Orton Company. To impress his boss, Dillon volunteered to take on several
Softa [21]

Answer:

Three things I think he must learn from this. Number one is to not take responsibilities of tasks that you are unaware of. Suppose I am a doctor of heart so don't know about spine issues. I must not create an image that I know everything. If I am doing so, I am living in the fool's paradise. This attitude can harm the patient and I will be liable for that. Secondly, if I am not capable of multitasking then I must consider my own limitations before agreeing to do more acceptance. Third thing is that when we increase productivity without increasing quality productivity level, this means we had compromised quality which Dillon has done with the Simpson Assignment. The Fourth one is that always consider a safety margin, for example Dillon can say when the task was not handed him over that he would do all these assignments but he needs some extra days. And also giving days for first one on a specified day before taking the assignments and next on next specified date. By doing so he was able to improve his image because he is providing quality.

6 0
3 years ago
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