<u>According to keynesianism, as more items are being made, what happens to prices D. the prices stay the same</u>
Explanation:
Keynes advocated that an increased government expenditures and lower taxes can stimulate demand and it can pull the global economy out of the depression.
Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending like consumption, investment, or government expenditure will cause the output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase.
<u>According to keynesianism, as more items are being made, what happens to prices D. the prices stay the same</u>
Answer with Explanation:
My goal is to start a business totally based on a new idea with great potential to influence the lives of the people of America. For this I had worked on a startup idea for couple of years and continuously reforming it.
The biggest risks associated with this goal is funding problems, business risks, market research, innovation issues and Software designing issues.
Now these are some risks that I face but I overcome these challenges by:
Risks Solution
Funding Risk: By presenting my startup idea on a international competition by writing business proposal based on well researched market, product innovation and the financial prospect of the business. There are numerous accelerator programs operated by the state and other organizations that encourage startups and helps with numerous facilities. So I will also present my idea here to secure funding from a wider number of investors.
Business Risks: Giving special considerations to business risks and their mitigation strategies.
Innovation: The products will be innovative enough to generate handsome amount of profit and must be capable of giving tough time to its competitors.
Market Research: The best performing businesses know who their customers are and what they are desiring from them. So market research would capable of identifying my potential customers and that it must be representative of the sample taken.
Software Designing: The software design must be user friendly and must effectively resolve users issues. Furthermore, it must be continuously updated with better features and friendly functioning.
Answer and Explanation:
The computation of the total budgeted selling and administrative expenses is shown below;
Utilities expense $2,800
Administrative salaries $100,000
Sales commissions 5 % of sales i.e. 5% of $860,000 $43,000
Advertising $20,000
Depreciation on store equipment $50,000
Rent on administration building $60,000
Miscellaneous administrative expenses $10,000
total budgeted selling and administrative expenses $285,800
Answer:
(1) establish the fund on January 1,
- Dr Petty cash fund 200
- Cr Cash 200
(2) reimburse it on January 8
- Dr Postage expenses 39
- Dr Transportation expenses 12
- Dr Delivery expenses 14
- Dr Miscellaneous expenses 28
- Cr Cash 93
(3) both reimburse the fund and increase it to $350 on January 8, assuming no entry in part 2.
- Dr Petty cash fund 150
- Dr Postage expenses 39
- Dr Transportation expenses 12
- Dr Delivery expenses 14
- Dr Miscellaneous expenses 28
- Cr Cash 243
The only difference between part 2 and 3 is that the Petty cash fund is increased by $150, and cash decreases by $243 instead of $93.
Answer: Proposal C
Explanation:
The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.
Proposal A.
Periodic payment of $2,000 makes this an annuity.
Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r
= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
= $103,451.12
Proposal B
Present value = Down payment + present value of annuity
= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]
= 10,000 + 93,676.70
= $103,676.70
Proposal C
Present value = Present value of annuity + Present value of future payment
= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]
= 16,435.51 + 85,999.17
= $102,434.68
<em>Proposal C has the lowest present value and so is best. </em>
