Yes. Subsidies are benefits that the government can grant to institutions, households and businesses to promote economic efficiency and reduce market failures. They may be distributed through cash or by cutting tax rates. However, there is controversy about the effectiveness of using subsidies for the economy, often related to the inefficiency of promoting a free market, allocating resources that could be used for investment in productive resources and masking the results of economic efficiency. Another major concern with the use of subsidies is the formation of political alliances of those who receive them and those who provide them, creating political interests because of their use.
Answer: $545,454.55
Explanation:
Caroline's share of the profit would be her sharing ratio over the total ratio time the net income.
= (6 / ( 6 + 2 + 3)) * 1,000,000
= 6/11 * 1,000,000
= $545,454.545
= $545,454.55
Answer: $20500
Explanation:
Bad debt is the amount of money that a credit owes the company and is not willing to be paid hence may not be collected.
The amount that Marigold should record as "bad debt expense" for the year ended December 31, 2020 goes thus:
Bad debt allowance balance needed =
$16700
Add: Bad debt that are written off = $26800
Less: Allowance for doubtful accounts = $23000
Bad debt expense will now be:
= $16700 + $26800 - $23,000
= $43500 - $23000
= $20500
Answer:
Option A is correct one.
<u>Managing & Franchising s asset turnover ratio at 17.6% suggests inefficiency when compared to Hotel Ownership</u>
Explanation:
The ratio of the operating return on sales for hotel ownership is:
474/1886 = 0.25
The asset turn-over for hotel ownership is :
1886/492.5 = 0.38 = 38%
Now, for managing and franchising :
The ratios are:
Operating return to sales = 113/ 120 = 0.94
Asset Turnover = 120/680 = 0.1765 = 17.65%.
