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3 years ago

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Business

1 answer:

Ne4ueva [31]3 years ago

6 0

Answer:

b. For a furniture company: wood, the skills and knowledge of its workers, saws.

Explanation:

The natural resources are all the elements that can be taken from the nature such as, water,fuel, electricity or stones. In this case the wood.

The human capital involves all the knowledge and non-physical values that the people or workers from the company can contribute adding value to the company.

Finally the physical capital refers to the machinery, facilities, and all the man made products that help to support the production process

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Skidmore Music Company had the following transactions in March: Sold instruments to customers for $16,300; received $11,200 in c

stiks02 [169]

Answer:

1. a) Dr Account receivable 16300

Cr Sales revenue 16300

b) Dr Cash 11200

Cr Account receivable 11200

2. Dr Inventory 4300

Cr Cash 1600

Cr Accounts payable 2700

3. Dr Wages expense 610

Cr Cash 610

4. Dr Cash 4200

Cr Advance from customer 4200

5. Dr utilities expense 270

Cr Utilities payable 270.

5 0

3 years ago

You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an

Harrizon [31]

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

Project A:

$NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58$

Project A should be accepted.

Project B:

$NPV = -\$135,000 +\frac{\$50,000}{(1+0.16)} +\frac{\$30,000}{(1+0.16)^2} +\frac{\$100,000}{(1+0.16)^3}\\NPV =-\$5,535.89$

Project B should be rejected.

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3 years ago

True or false? A buyer persona is as important as business objectives when developing a social media strategy.

Nady [450]

Answer:

True.

Explanation:

3 0

3 years ago

Magnira Corp., a small-scale e-learning firm, recently bought a three-year license of a cloud-based software. The software provi

Daniel [21]

Answer: Communication cost

Explanation:

All or most server companies do allocate some form of liscence to their clients to browse the internet and use some internet tools for space of a period time. This service could either provide internet service or more depending on the cost and the kind of package that was bought. The process of acquiring this could be known as communication cost.

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2 years ago

Suppose that XYZ Company hires labor and capital in competitive input markets. Assume that labor costs $200 per day and that a u

GuDViN [60]

Answer:

a) Yes, the firm is minimizing the cost of current production. This is because MRPL / w = MRPC / r = 0.20.

b) The long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

Explanation:

a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.

The condition for the cost minimization of a firm is as follows:

MRPL / w = MRPC / r ……………………………. (1)

Where:

MRPL = Labor's marginal product = 40

w = Cost of labour = $200

MRPC = Capital's marginal product = 30

r = Cost of capital = 150

Therefore, we have:

MRPL / w = 40 / 200 = 0.20

MRPC / r = 30 / 150 = 0.20

Since MRPL / w = MRPC / r = 0.20, this implies that these conditions are consistent with equation (1). Therefore, the firm is minimizing the cost of current production.

b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.

If the daily wages were to increase, the MRPL / w in equation (1) in part a above will fall and we will have:

MRPL / w < MRPC / r …………………… (2)

Since equation (2) is no longer consistent with equation (1), the firm is NOT minimizing the cost of current production.

Therefore, the long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.

7 0

2 years ago