Which of the following is not a component included in a standard business plan?

Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse demand function is pequals

Crazy boy [7]

Answer:

Club membership fee of $60 would maximize profit.

If the club charges tow part pricing the maximum revenue can be $3500.

Explanation:

Joe has entered into a monopoly because he is owner of single golf course in the Northlands.

Demand function for Joe's golf course is:

P = 160 - 2q

P = $20 , q = 50

160 - 2 (50) = 60

Consumer surplus = 0.5 * equilibrium quantity

Consumer Surplus for Joe is ; 0.5 * 50 (160 - 20) = $3500

If MR = MC then demand function will become :

160 - 4q

If q = 25 then

160 - 4 * 25 = 60

6 0

3 years ago

The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is

vredina [299]

Answer:

Becoming dependent on other companies for essential expertise and capabilities.

Explanation:

When a firm comes in alliance with any other firm , the sole motive behind this is to complement each other with they key competencies. They make use of each other strength to grow together.

However it has one disadvantage is that if one rely only on alliance partner for the specific expertise or resources, it creates a sense of dependencies and if the alliance get annexed in future due to some reason, it can hamper the business.

In today's world example can be vividly seen, in Corona virus crisis, any firm's alliance with Chinese companies may get hurt, as lock-down in china may interrupt major supplies from china.

3 0

3 years ago

Costs from Beginning Inventory Costs from Current Period

Alex

Answer:

$30.59

Explanation:

<em>Note that the FIFO method is used for this question</em>

Equivalent Units

Materials = 5,200 x 100 % + 300 x 100 % = 5,500

Conversion Costs = 400 x 55 % + 5,200 x 100 % + 300 x 35 % = 5,525

Total Costs

Materials = $25,200

Conversion Costs = $143,700

Cost per Equivalent unit

Materials = $25,200/5,500 = $4.58

Conversion Costs = $143,700/5,525 = $26.01

Total Cost = $4.58 + $26.01 = $30.59

<u>Conclusion</u>

The cost of completing a unit during the current period was $30.59

5 0

3 years ago

Suppose that on January 6, 2018, Excel Motors paid $240,000,000 for its 45% investment in Dynamic Motors. Excel has significant

Ivenika [448]

Answer: provided in the explanation segment

Explanation:

To begin we will answer each part accordingly.

For Requirement 1 :

I would say that Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the investment company.

For Requirement 2 :

In the books of Excel Motors: we have that;

Transaction/ Event Date Accounts&Explanation Debit ($

) Credit($

)

1. Jan 6, 2018 Investment in Associate 240,000,000

Cash 240,000,000

Accnt&Explan: To record cash paid for equity investment in Dynamic Motors.

2. Cash ( $ 15,000,000 x 45%) 6,750,000

Investment in Associate 6,750,000

Accnt&Explan:To record dividend received in cash from Dynamic Motors

3. Investment in Associate ( $ 10,000,000 x 45%) 4,500,000

Investment Revenue 4,500,000

Accnt&Explan:To record income earned on equity investment

For Requirement 3:

Equity Investment in Dynamic Motors:

Cash 240,000,000 Cash 6,750,000

Investment Income 4,500,000

Ending Balance 237,750,000

244,500,000 244,500,000

The balance would be classified as a non-current asset on the balance sheet dated December 31, 2018

cheers i hope you understand, this is actually in a tabular form.

8 0

3 years ago

______________ knowledge refers to the entrepreneur's possession of information, technology, know-how, and skills that provide i

olga_2 [115]

Answer:

The correct word for the blank space is: Market.

Explanation:

Market knowledge refers to the collection of information about the business and all its resources being offered to the market. It does not only help entrepreneurs to have a better understanding of what the firm is and what it can do but also allows them to improve the decisions they take to direct the business process towards the organizational goal.

6 0

3 years ago