Answer:
c. has decreasing slope and a person is risk averse.
Explanation:
The marignal utility of wealth represent that the subsequent utility of the person wealth is not perceived as necessary/joyful as the previous one.
This makes the slope of the utility function to go upward but at slower grow.
The first units of wealth produce a great improvement in utlity compared with the followings just like in any other good or service provided in the economy.
Answer:
The four basic elements of business are:
A. Production, fiance, marketing, and customer service.
Explanation:
These elements make up a business organizational structure. Functional structures and hierarchies revolve around these basic elements. Production in some organizations will be described as operations. It is the core of the business. Revenues that sustain the business are generated from production or operations. Finance handles the revenues and the costs associated with running a business. Marketing ensures that the goods and services from production or operations are made known to customers through research, information acquisition, and customer education. Finally, customer service ensures good relationships between the business and the customers, who are the chief patrons of the business. These essential elements ensure business success.
Answer:
$54 million
Explanation:
The computation of the balance of retained earnings at the end of the year is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income earned - cash dividend paid
= $20 million + $40 million - $6 million
= $54 million
The net income is
= Sales revenue - expenses incurred
= $70 million - $30 million
= $40 million
Answer:
(E) Given the 7.5% interest rate on the mortgage bonds, the plain debentures might carry an interest rate of 8.0% and the subordinated debentures a rate of 8.5%.
Explanation:
In the problem shown above, the company wants to create a financial expansion by issuing bonds. The company has three different options to use for the bond issuing and plans to select the best options by considering different variables. Based on the available options, if the mortgage bond has an interest rate of 7.5%, there will be an approximately 8% interest rate on the plain debentures and 8.5 interest rate on the subordinated debentures.
Answer and Explanation:
The journal entries are shown below:
On April 1
Franchise $128,000
Cash $128,000
(Being the franchise obtained is recorded)
It increased the assets and decreased the assets so both the accounts are debited and credited
On December 31
Amortization expense $12,000
Franchise $12,000
(Being amortization expense is recorded)
The computation is shown below:
= $128,000 × 9 months ÷ 12 months ÷ 8 years
= $12,000
It increased the expenses and decreased the assets so both the accounts are debited and credited
