Answer:
The answer is: the 80/20 rule
Explanation:
Applied in business, the 80/20 rule (also called the Pareto Principle), states that 20% of your customers account for 80% of your sales. It doesn´t necessarily need to be an exact proportion of 80/20, but as a rule it should help organize our time and activities in dealing with our most important customers.
As a general rule it applies to most activities of a person´s ordinary life, were 20% of the time we spend result in 80% of the benefits.
Answer:
The correct answer is letter "C": competitive barrier.
Explanation:
Competitive barriers represent obstacles for a business to start operations based on what other companies are already providing to the market. The settled companies -competitors- tend to have a preference and market share obtained through years of operations which is a threat for a new company that is looking for attracting consumers.
Answer:
The answer is C. can earn profits or incur losses in the short run.
Explanation:
A monopolist maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. However, if the average total cost is above the market price, then the firm will incur losses, equal to the average total cost minus the market price multiplied by the quantity produced
Answer:
The amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Explanation:
The costs of a fixed asset refer to the purchase price and other relevant costs which are incurred in order to the location and working condition required to operate the fixed asset in way that it is intended.
The other relevant costs that are added to the purchase price to arrive at the cost of the fixed assets include professional fees, non-refundable taxes or levies, and among others.
If any trade discount or rebate is given, this will be deducted from the purchase price to arrive at the cost.
Any interest required to be paid on the delayed payment in order to reflects the time value of money are not part of the cost of the asset but expensed in the year they are incurred.
From the question, the land acquired is a fixed asset. Based on the explanation above, the total cost of the asset is $6.2 million. The interest from the 6% interest rate on the remaining $5 million will be part of the cost of the land but it will be expensed in the year they are incurred.
Therefore, the amount Laramie should record the purchase of land is <u>$6.2 million</u>.
Answer:
D. Serves as an initial evaluation of the adequacy of an investment's expected cash flows.
Explanation:
Ratio analysis serves as an initial evaluation of the adequacy of an investment's expected cash flows.
Ratio analysis can be defined as the analysis of different pieces of financial information in the financial statements of a business.
Ratio analysis is used to get insight about the financial wellbeing of a business. It is used by analysts to determine various aspects of a business, such as its profitability, liquidity, and solvency.
