<span>The correct answer is C. Equipment loans are not usually tied to the redevelopment of the business real estate in any way. Equipment and real estate are two distinct classes of business assets. An equipment loan would, however, be tired to the equipment itself as the nature of the equipment would determine the amount of the loan. The equipment would also usually serve as collateral on the loan. The financial position of the borrow and the business's overall cash flow (but mainly its operating cash flow) would also be tied to the equipment loan in that these items would help the bank assess the risk of the loan and therefore determine the interest rate and terms of the loan.</span>
Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Answer:
D. Call an all staff meeting and give everyone the news at once.
Explanation:
Instead of letting the rumors spread throughout the company, what Ben is supposed to do is have a meeting with his entire staff and let all of them know at once what's going on. This way, he will be clear and direct and won't allow for gossip to spread throughout his company and he himself will address the issue head-on. This way he won't leave room for misinterpretation as he will explain what is going to happen.
Answer:
Explanation:
Base on the scenario been described in the question, Molander can only recover against the assets of the limited
partnership and its corporate general and limited partners. He cannot recover against Calvin
Raugust personally. Under limited partnership law, a limited partnership is liable on its own
contracts; in addition, the general partner is individually liable for the debts and obligations of a
limited partnership. Limited partners may be held liable for the obligations of the limited
partnership if the limited partnership has been defectively formed. Otherwise, limited partners’
liability is limited to their capital contribution to the limited partnership.
Answer:
$17,600 ; $29,000
Explanation:
The computation of the net income is shown below:
Based on Cash basis
= Received cash - Expenses incurred in cash - prepaid expenses
= $56,000 - $26,900 - $11,500
= $17,600
Based on Accrual basis
= Revenue earned - expenses incurred
= $64,000 - $35,000
= $29,000
The cash expenses incurred is
= $35,000 - $8,100
= $26,900
