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Alexandra [31]
3 years ago
8

The following transactions were made by Ruby Inc. last year:

Business
1 answer:
Juliette [100K]3 years ago
8 0

Answer:

OPtion (C) is correct.

Explanation:

Given that,

Issuance of common stock = $100,000

Dividends paid to the company's stockholders = $2,000

Depreciation expense = $6,000

Repayment of principal on bonds = $40,000

Proceeds from the sale of the company's used equipment = $39,000

Purchase of land = $230,000

Cash flow from financing activities:

= Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds

=  $100,000 - $2,000 - $40,000

= $58,000

Therefore, the net cash inflow from financing activities is $58,000.

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Productive resources are _____.
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factors that are used to make goods and services letter a

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Everything else held constant, when prices in the art market become more uncertain:______.
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the demand curve for the bonds shifts to the left and the interest rate rises

when the market is volatile , then the risk associated with the bond is very high . there is an inverse relation ship between risk and demand. when the risk is high, the demand for the bond decrease and the demand curve shifts to the left. also there is an inverse relation ship between the demand and interest rate. hence, when the demand decrease , the interest rate on the bond rises

the explanation for correct option because of an inverse relationship between the risk demand and demand interest rate, the interest rate cant fall when the demand curve shift to the left and when the risk is high , the demand curve shifts to the left only, not to the right .

Learn more about demand curve here.

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8 0
2 years ago
Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally,
lara [203]

Answer:

B. Joint venture

On a Joint venture, Axiom will have partner which share the risk and cost of the project.

Also this partners can be local companies with knowledge ofthe Chinese market.

Axiom will have limited liability until his contribution.

It will generate new jobs in the country and include local business persons, this will be politically acceptable

This option has everything Axiom is looking for.

Explanation:

<em>A.- if Axiom uses a subsidiary</em> it will not have access to local knowledge. Also it will be the same entity, so it won't be sharing the cost.

It won't be what the company need

<em>C.- if exporting</em> it will not be expanding inside the country. Also it will not provide local knowledge or share the cost with a third party. The goverment may create additional tariff or market cuota or any other barrier to protect national companies.

It won't be what the company need

<em>E.- Licensing: </em>will be selling the brand name or product to a third party. It will not be part of the revenue stream entirely. A third party with knowledge of the market will exploit the benefit.

<em>D. Greenfield investments: </em>The company will establishes operations on the country. It will have a high cost, but will get the goverment approval for the jobs created in China. However it will be Axiom who takes the cost and risk for the entire investment.

These two are partially suitable, but with some backwards

5 0
3 years ago
A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly s
posledela

Answer:

exporting

Explanation:

The exporting refers to the trade in which the goods and services are produced and sold to the another country. In this, the person who sells the goods and services is known as exporter while the foreign buyer who buyed the goods and services is known as importer

According to the given situation, the company is looking for growth opportunities and it is a fairly small company. Moreover it focused on exporting the goods and services

Hence, the option C is correct

5 0
2 years ago
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