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3 years ago

2. Which two of the following are most likely to be advantages of taking on a

Business

1 answer:

Mariana [72]3 years ago

3 0

Answer:

A).The franchisor provides a tried and tested product to sell

C ). The franchisee receives ongoing help and support from the franchisor

Explanation:

A franchise is an arrangement where an established and successful business person( franchisor) licenses a third party( franchisee) to set up an independent branch similar to the franchisor business. The franchisor permits the franchisee to use their brand name, colors, processes, and procedures and sell their products. Therefore, the franchisee's branch will be similar in all aspects to the other franchisor's branches.

The franchisor provides technical, operational, and managerial support to the franchisee. The franchisee pays an initial fee and a percentage of monthly sales to the franchisor to open a franchise business.

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Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in

solmaris [256]

Answer:

Accrual basis of accounting

Explanation:

Accruals basis accounting (accruals accounting, the matching concept) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts or payments occur in a different period.

Revenue from sales and other income should be reported in the period when the income arises (which might not be the same as the period when the cash is received from the customer / client).

Based on the above discussion it can be concluded that the Portie's practice is an example of accrual basis of accounting.

7 0

3 years ago

Your client, Brooke, decides to start saving for her son's college tuition. Her son was born today and will go to college at age

oksian1 [2.3K]

Answer:

The present value of the total amount that Brooke needs to have saved at the beginning of her son's first year of college is 31.959,13

Explanation:

Tuition Fees after inflation at

Year 18 = 15000* ( 1+6.5%)18 = 46599.8157

Year 19 = 15000* ( 1+6.5%)19 = 49628.8037

Year 20 = 15000* ( 1+6.5%)20 = 52854.6759

Year 21 = 15000* ( 1+6.5%)21 = 56290.2299

Since discount rate = 10%

So discount factor = 1+r = 1+10% = 1.1

Since fees are paid at beginning of period hence

Present Value of Fees = Fees (year 18)/1.1^18 +Fees at Year 19/1.1^19 +Fees at Year 20/1.1^20 + Fees at year 21/1.1^21 = 46599.8157/1.1^18 + 49628.8037/1.1^19 + 52854.6759/1,1^20 + 56290.2299^21 = 31959.13

3 0

4 years ago

Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable

pav-90 [236]

Answer: $400,000

Explanation:

Days Sales Outstanding is used by a firm to estimate the amount of its accounts receivable.

DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day

Where DSO= 20 days

Average sales per day= $20,000

Accounts receivable (AR) =?

20=AR/20000

Cross multiply to make AR the subject of the formula

Accounts Receivables = 20 x 20000

AR=$400,000.

3 0

3 years ago

Live Trap Corporation received the data below for its rodent cage production unit. OUTPUTINPUT 50,000 cagesProduction time 620la

kenny6666 [7]

Answer:

Please see explanations below

Explanation:

Total productivity : Units sold

50,000 / [(620 × $7.5) + $30,000 + $15,530]

= 50,000 / [(4,650 + $45,530)]

= 50,000 / 50,180

= 1.0 unit sold per dollar input

Total productivity : Dollars of sales

(50,000 × $3.5) / [(620 × $7.5) + $30,000 + $15,530

= $175,000 / [($4,650) + $45,530

= $175,000 / $50,180

= 3.50 dollars in sales per dollar input

8 0

3 years ago

Match the following definitions to the correct term. A. Patent B. Research and development costs C. Trademark D. Intangible asse

zlopas [31]

Answer:

A. Patent: government license that provides title over an invention and right to use for a certain amount of time.

B. Research and development costs: costs incurred to develop new products or processes.

C. Trademark: a brand name or symbol that is registered under an individual or a business.

D. Intangible assets: non-physical assets, e.g. patents

E. Copyright: the legal right that the owner of a work (e.g. song, movie) possesses to decide who can use his work or not, and charge a fee for it.

F. Plant assets: asset that is used to generate revenue and whose useful life is more than one year.

G. Goodwill: when a business is sold, it represents an intangible asset associated with the reputation of the business.

H. Franchise: a business model where a franchisee starts a business by using someone else's (franchisor) business model and know how.

3 0

4 years ago