Answer:
The correct answer is letter "C": State Legislature.
Explanation:
State Legislature refers to the political subdivision in the federal system of the U.S. that is present in any of the fifty (50) states that have the duty to create legislation that could potentially become law. The State Legislature is also in charge of approving and initiate tax legislation.
Explanation:
a) A free market would allow the laws of demand and supply to flourish; prices of commodities will be set by manufacturers based on demand. However, Government regulations which interfere with the free market is going to result in feeling the pain of monopoly.
b) Indeed, the price mechanism when controlled by the government can result in efficient provision of public goods.
One such example of a public good ls PMS (premium motor spirit) used as petrol in most vehicles. Controlling the price of petrol by the government in most cases helps avoid excessive charges from petrol stations per pump price.
Answer:
False
Explanation:
Forward Vertical Integration occurs when a company acquires one of its suppliers.
In this case, we do not have an example of forward vertical integration because the owner of the jewerly store did not purchase the supplier: the diamond brokerage firm. He instead opted to start his own brokerage firm.
The case in the question is an example of forward vertical integration, that occurs when a company moves along the supply chain by starting its own subsidiares instead of buying existing ones.
Answer:
c. $620,000
Explanation:
The computation of the book value is shown below:
The depreciation expense would be
= (Acquiring value of the machine - estimated residual value) ÷ (estimated useful life)
= ($1,000,000 - $50,000) ÷ (5 years)
= ($950,000) ÷ (5 years)
= $190,000
The depreciation should be charged for 2 years so, the accumulated depreciation is
= $190,000 × 2 years
= $380,000
Now the book value
= Acquiring value of the machine - accumulated depreciation
= $1,000,000 - $380,000
= $620,000