Most of us have similar values, but we might put them in vastly different orders of importance.

True or False: It is common for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures

NNADVOKAT [17]

it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

Basically, debt investment entails an investor who lends his money to a firm, individual with an expectation of repayment of loan plus interest from them at a particular date.

The practice that borrowers should engage in less risky business strategies for their ventures will not be encouraged by debt investors because it is less risky and will not yield high return to allow them repay their loan quick enough.

Therefore, it is false and uncommon for debt investors to push entrepreneurs to pursue less risky business strategies for their ventures.

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3 0

2 years ago

Opportunity cost is defined as A. the monetary expense associated with an activity. B. the highest valued alternative that must

Ratling [72]

Answer:

B. the highest valued alternative that must be given up to engage in an activity.

Explanation:

Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

Eg1: If I like Chapati more than rice & rice more than curd, the opportunity cost of consuming chapati is the next best option i.e rice.

Eg2 : Working as school teacher with salary 20000, next best option salary as coaching tutor i.e 10000 is the Opportunity Cost

A is inapt : Opportunity cost can be monetary or non monetary. Eg2 has monetary opportunity cost. But, Eg 1 has opportunity cost in terms of rice' (sacrifised) satisfaction.

C is inapt : Opportunity cost is only the cost of next best alternative & not all alternatives. Eg1 - Curd i.e 3rd best option after chapati, is not the opportunity cost after chapati.

4 0

3 years ago

Suppose that in 2010, the producer price index increases by 1.5 percent. as a result, economists most likely will predict that?

DiKsa [7]

Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.

The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.

Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.

Hence, higher producer prices means that consumers will pay more when they buy.

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3 0

2 years ago

Anthony is putting together an employee group to help add new technology to his company's existing products. He is seeking emplo

Zarrin [17]

Answer:

True

Explanation:

True, but to achieve full success Anthony should manage his millennials properly. Despite being labeled as 'tech savvy, flexible, adaptable, they need to feel their voices are being heard, they're part of a team, so they will generate a stronger and stronger sense of commitment.

7 0

3 years ago

PA1.

kolezko [41]

Question: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs:

Small Medium Large

Units 32,000 12,000 4,000

Direct Material cost $5 $8 $9

Direct Labor Hrs / Unit 4 Hrs 6 Hrs 10 Hrs

If the labor rate is $25 per hour, what is the per-unit cost of each product?

Answer:

Step 1: Identify Absorption Basis

Here, absorption basis is Labor hours.

Step 2: Find the Overhead Absorbed Rate by dividing total Overhead by total absorption basis.

The formula is as under:

Overhead Absorbed=Total Overhead / Total Absorption Basis... Equation 1

By putting values in Equation 1:

Overhead absorption Rate OAR =$480,000 / 240,000 Machine Hrs = $2 per Labor hour

Step 3: Now calculate overhead per unit for product Small, Medium and Large by simply multiplying OAR with Direct Labor hours consumed per unit

Overhead per unit for Product X= OAR * Direct Labor hours consumed per Product X....................Equation 2

Now simply put the values in Equation 2 of direct labor used by each product and calculate Overhead per unit.

For Product Small:

Overhead per unit for Product Small= $2 * 4 direct labor hours= $8 per unit

For Product Medium:

Overhead per unit for Product Medium= $2 * 6 direct labor hours= $12 per unit

For Product Large:

Overhead per unit for Product Large= $2 * 10 direct labor hours= $20 per unit

Step 4: Add the per unit prime cost to Overhead cost per unit calculated in the Step 3 to calculate the total unit cost of the product. Prime cost is the sum of all direct costs. In this question, Prime cost includes Direct labor cost and Direct material cost.

Now first of all find prime cost of each product by using following formula:

Prime cost per unit for Product X= (Direct material cost per unit of Product X) + (Direct labor cost per unit of Product X)............Equation 3

Thereafter add prime cost to overhead unit cost calculated in step 3.

For Product Small:

Prime cost per unit for Small= ($5 per unit) + ($25 per direct labor hour * 4 number of direct labor hours)=$5 per unit + $100 per unit= $125 per unit

Total Unit cost of product Small= Overhead cost per unit for Small + Prime cost per unit for Small =$125 per unit + $8 per unit=$133 per unit

For Product Medium:

Prime cost per unit for Medium= ($8 per unit) + ($25 per direct labor hour * 6 number of direct labor hours)=$5 per unit + $150 per unit= $155 per unit

Total Unit cost of product Medium= Overhead cost per unit for Medium + Prime cost per unit for medium =$155 per unit + $12 per unit=$167 per unit

For Product Large:

Prime cost per unit for Large= ($9 per unit) + ($25 per direct labor hour * 10 number of direct labor hours)=$9 per unit + $250 per unit= $259 per unit

Total Unit cost of product Large= Overhead cost per unit for Large + Prime cost per unit for Large =$259 per unit + $20 per unit=$279 per unit

6 0

3 years ago