The similarity between a sole proprietorship and partnership is that Both their earnings are untouched by the Internal Revenue Service
<h3>What is Sole proprietorship?</h3>
Sole proprietorship is a business Enterprise that is owned and run by an individual person.
The individual person is the risk taker.
<h3>What is partnership?</h3>
Partnership refer to any business Enterprise that is own and run by two or more people.
Therefore, The similarity between a sole proprietorship and partnership is that Both their earnings are untouched by the Internal Revenue Service.
Learn more about proprietorship from the link below.
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Answer:
This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.
Explanation:
Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies. Because it's going to entail substantial redundancy and a scarcity of product standards to adapt products to varied domestic needs, the result could also be a rise in prices.
While some organizations, like Company A, face a high to scale back cost and low for the reaction of locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C. It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. The analysis of 168 MNE companies within the People's Republic of China shows that environmental complexity and therefore the uniqueness of business culture increase local reaction. Structural variables like the intensity of competition, heterogeneity of demand and localisation of components increase local reaction.
Answer:
At what price is revenue maximum?
- $13 and $12 per unit (maximum revenue $156,000)
What is the maximum revenue and how many sets of headphones should the company expect to sell?
Write your conclusions in a sentence.
- When the price is higher than $12 per unit, demand is elastic, which means any decrease in price will result in a larger proportional increase in quantity demanded. This in turn increases total revenue. Below $12 per unit, demand is inelastic, which means that a decrease in price will result in a smaller increase in quantity demanded.
Explanation:
price quantity demanded total revenue
$20 5000 $100000
$19 6000 $114000
$18 7000 $126000
$17 8000 $136000
$16 9000 $144000
$15 10000 $150000
$14 11000 $154000
<u>$13 12000 $156000
</u>
<u>$12 13000 $156000
</u>
$11 14000 $154000
$10 15000 $150000
$9 16000 $144000
$8 17000 $136000
$7 18000 $126000
$6 19000 $114000
$5 20000 $100000
$4 21000 $84000
3 22000 $66000
2 23000 $46000
1 24000 $24000
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Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) = 
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
