Answer:
d. Accounts payable and accruals are tied directly to sales.
Explanation:
Additional funds needed method determines the amount that the company needs to finance the increase in total sales.
In response to the increase in sales, the company has to increase its assets to achieve that goal. The increase in total assets is partly offset by an increase in liabilities and the other part is offset by an increase in retained earnings.
The only true statement of the AFN equation is the option d), and the other options are not right.
The answer to question one is raising financial capital is difficult and the owner is personally liable for business debts.
Sole proprietorships have a number of advantages and disadvantages. These are two of the biggest disadvantages.
Question number two can be solved through the process of elimination. The workers and shareholders would not be hiring anyone. This leaves the Presidents and Vice Presidents. The President would normally hire the Vice Presidents, and then the Vice Presidents would hire and supervise the heads of the departments.
It depends on the state. I think the youngest is 13 years old. But you have to work with high supervision.
Answer: B. The firm would install the filter at a cost of $ 300,000.
Explanation:
If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.
If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.
The lower cost option would be to install the filter for $300,000 which is what the firm would do.
