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2 years ago

Why do you think an entrepreneur might choose to keep a business small rather than expand it?

Business

1 answer:

SpyIntel [72]2 years ago

4 0

Answer:

Growing a business is very difficult

Explanation:

There are a lot of factors that influence business growth, a large one is the amount of time and money an owner can devote to it. Growing a business is hard - an owner may need to hire more people, find more space, buy more inventory, market to more customers, and all these activities take time and money. A lot of small business are successful because they operate in a niche, e.g. a restaurant located across the street from a factory will get customers before and after the shifts, but if the owner opened a second location in a strip mall with other restaurants nearby they need to find an entirley different customer base that already is being served. Some small businesses, e.g. candle maker at a farmers market, started as hobbies for the owner that turned into a business, but the owner can't afford to quit their day job and make candles full time. Growning a business in some ways is a lot harder than starting one.

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During the current month, Grey Company sold 60,000 units for $10 each. Each unit had an equivalent cost of $6 each. The journal

Romashka [77]

Answer:

The sale entry would be:

Dr Trade Receivable $ 600,000

Cr Sale $600,000

And the inventory sent out of warehouse to customer would be recorded as:

Dr Cost of goods sold $360,000

Cr Finished Goods account $360,000

Explanation:

As we know the sale is credit in nature and inventory sold on credit increases the trade receivable which is debit in nature.

So the entry would be:

Dr Trade Receivable $ 600,000

Cr Sale $600,000

And the inventory sent out of warehouse to customer would be recorded as:

The reason is that once the product is sold then the cost of finished goods is eliminated from the inventory account and would be charged to the cost of goods sold. So the entry would be posted by the cost of equivalent that the company has incurred to manufacture the product. Here the cost of equivalent is given and is $6 per unit.

So for the sale of 60,000 units the total cost of equivalent will be:

Total equivalent cost = 60,000 units * $6 per unit = $360,000

And the entry would be:

Dr Cost of goods sold $360,000

Cr Finished Goods account $360,000

3 0

3 years ago

n autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia

Rainbow [258]

Answer:

the domestic price of sugar will increase to $125.

Explanation:

Since the world price of sugar is higher than the domestic price, domestic producers of sugar will export their products in order to earn a higher profit. That will eventually lead to an increase in the equilibrium price from $100 (former equilibrium price) to a higher price equal to the world price ($125).

6 0

3 years ago

Which of the following is a result of over-diversification through acquisition? Select one:

Aleksandr-060686 [28]

Answer:

3) Corporations use acquisition as a substitute for innovation.

Explanation:

The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.

Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.

6 0

3 years ago

Settings alzania produces and consumes 500,000 tons of cotton during a year. Reports indicate that alzania's neighbor, which a

UkoKoshka [18]

Answer: C- Alzania's neighbor exported half its production of cotton that year

Explanation: Alzania produces and consumes 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton industry, consumed 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.

Thus, if <em>Alzania's neighbor exported half its production of cotton that year </em>the total production of cotton is greater of the neighbor than Alzania.

6 0

3 years ago

A bond with a $1,000 face value and a 10 percent annual coupon rate matures in 15 years. a. Determine the value of the bond to a

Licemer1 [7]

Based on the details given, the following are true:

a. Value of bond = $806.09
b. Your friend should invest in the bond with $1,000 face value

<h3>Value of Bonds </h3>

First find coupon:

= 10% x 1,000

= $100

Bond A

<em>= (Coupon x Present value interest factor of annuity, 13%, 15 years) + Face value of bond / ( 1 + 13%)¹⁵</em>

= ( 100 x 6.462) + (1,000 / 1.13¹⁵)

= $806.09

Bond B

= Face value - Current value

= 1,000 - 180

= $820

In conclusion, Bond B is overvalued so your friend should pick Bond A.

Find out more on Bond price calculation at brainly.com/question/25365327.

8 0

2 years ago

Why do you think an entrepreneur might choose to keep a business small rather than expand it?​

Why do you think an entrepreneur might choose to keep a business small rather than expand it?