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3 years ago

Which three factors make starting a business a highly risky investment?

1 answer:

3 0

The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.

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Lewis Company traded machinery with a book value of $950,000 and a fair value of $900,000. It received in exchange from Timmons

Komok [63]

Answer:

Lewis should recognize a gain on the exchane of $13,636

Explanation:

In order to calculate the amount of gain or loss should Lewis recognize on the exchange, first we have to determine the amount of gain with the followig formula:

Gain=Total value of the machine received-Book value of machine exchanged

=(cash received+fair value of machine received)- $950,000

=($100,000+$1,000,000)-$950,000

=$ 150,000

Next, In order to calculate the amount of gain or loss should Lewis recognize on the exchange we have to use the following formula:

recognize gain or loss=( cash received )× gain

cash received+fair value of equipment received

= ( $ 100,000 )× 150,000

$100,000+$1,000,000

=$13,636

Lewis should recognize a gain on the exchane of $13,636

8 0

3 years ago

Suppose that a monopoly firm finds that its MR is $60 for the first unit sold each day, $59 for the second unit sold each day, $

Oksi-84 [34.3K]

Answer

A. MRP = Change in revenue / Change in Labor

For first worker = 60 + 59 + 58 + 57 + 56 = 290/1 = $290

Since he produces 5 units.

Second Worker = 55 + 54 + 53 + 52 = 216/1 = $174

Since he produces 4.

Similarly,

Third worker = 51 + 50 + 49 = $150

Fourth worker = 48 + 47 = $95

Fifth worker = $46

B. Now all units are charged at $50

First worker = 5*50 = $250

Second = 4*50 = $200

third = 3*50 = $150

and so on.

C. If the wage is $210 it will demand workers until the MRP decreases below 210 and that happens for worker 2 here.

Since he can produce only $200 for $210 wage, he should not be hired. Hence only one worker will be hired here

D. If the wage falls to $97 the demand for workers will increase, again for worker 4 MRP is $100 which is above $97 and worker 5 goes below.

6 0

3 years ago

Funtime Quadcopters plans to sell a standard quadcopter (toy drone) for $ 55 and a deluxe quadcopter for $ 85. Funtime purchase

brilliants [131]

Answer:

Funtime must sell 510 standard quadcopters and 340 deluxe quadcopters every month to breakeven.

Funtime must sell 840 standard quadcopters and 560 deluxe quadcopters to earn $ 7,700 monthly.

Explanation:

A. To breakeven, the revenue must equal the total costs.

1. Write the expresssion of revenue

Revenue = price × number of units

Revenue from standard quadcopter

Naming s the number of standard quadcopters sold:

$55 × s = 55s

Revenue from deluxe quadcopter

Naming d the number of deluxe quadcopters sold:

$85 × d = 85d

Total revevue:

55s + 85d

2. Write the expression of cost

Purchase price of standard quadcopters

$45s

Purchase price of deluxe quadcopters

$65d

Fixed monthly expenses

$11,900

Total cost:

45s + 65d + 11,900

3. Relation between number of deluxe quadcopters and standard quadcopters

Two deluxe quadcopters for every three standard quadcopters

d = (2/3)s

4. Substitute d with (2/3)s in the expressions, writhe the equation and solve

Revenue = 55s + 85(2/3)s

Cost = 45s + 65(2/3)s + 11,900

Revenue = Cost

55s + 85(2/3)s - 45s - 65(2/3)s - 11,900 = 0

Multiply the equation by 3, to eliminate the denominators:

165s + 170s - 135s - 130s - 35,700 = 0

Add like terms and add 35,700 to both sides

70s = 35,700

Divide by 70

s = 510

Substitue s in d = (2/3)s

d = (2/3)510 = 340.

Therefore, Funtime must sell 510 standard quadcopters and 340 deluxe quadcopters every month to breakeven.

B. To earn $7,700

Profit = revenue - cost

7,700 = 55s + 85(2/3)s - 45s - 65(2/3)s - 11,900

Add 11,900 to both sides

19,600 = 55s + 85(2/3)s - 45s - 65(2/3)s

Mutliply the equation by 3:

58,800 = 165s + 170s - 135s - 130s

Do the operations:

58,800 = 70s

s = 58,800 / 70 = 840

d = (2/3)840 = 560

Hence, Funtime must sell 840 standard quadcopters and 560 deluxe quadcopters to earn $ 7,700 monthly.

6 0

3 years ago

Why will the face value of a bill of currency never change?

Softa [21]

I would think A the inflation rates are controlled

5 0

3 years ago

Read 2 more answers

Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive mar

grin007 [14]

Answer:

The correct answer is letter "A": countries with high purchasing power today may not continue to show the same growth in the future.

Explanation:

Even if during the past decade the world's major economies have been the same -The U.S., Japan, China, Russia, and Germany- it does not necessarily mean the scenario will not change for the next one hundred years. Some other countries like Saudi Arabia, Switzerland, Belize, Luxembourg, and Australia have started to show signs of increasing development that could turn the worldwide economy into a new direction. The last five (5) countries are reported as being the top nations with the highest purchasing power for 2018.

7 0

3 years ago