Stock consists of all the shares by which ownership of a corporation or company is divided.
Explain the whole process
The Equity Section of the Nortech Corporation's Balance Sheet is as follows:
Common Stock:
500,000 shares, Authorized at $1 par value
200,000 Issued Shares at $1 = $200,000
Additional Paid-in Capital = 4,143,000
3,000 shares, Treasury stock (3,000)
Retained Earnings = 253,500
Total Equity $4,593,500
1. Shares Outstanding = 197,000 (200,000 - 3,000)
2. Balance in Additional Paid-in Capital = $4,143,000
3. Earnings per share = $0.75 ($147,750/197,000)
4. Dividend per share = $0.25 ($49,250/197,000)
5. The Treasury stock is reported as $3,000 on the balance sheet.
6. With a 2-for-1 stock split, the par value becomes $0.50 ($1/2)
Data and Calculations:
Par value of Common Stock = $1
Authorized Shares = 500,000 shares
Issue price per share = $22
Common Stock Account = $200,000
Issued Shares = 200,000 shares ($200,000/$1)
Treasury Stock = $3,000 (3,000 x $1)
Additional Paid-in Capital = $4,200,000 (200,000 x $21)
Additional Paid-in Capital (Treasury Stock) = $57,000 ($19 x 3,000)
Balance of Additional Paid-in Capital = $4,143,000 ($4,200,000 - $57,000)
Retained earnings for the year:
Beginning Balance $155,000
Net income 147,750
Dividends paid (49,250)
Ending Balance $253,500
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when liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as:
When liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as respondeat superior.
In financial accounting, a liability is defined as the destiny sacrifices of economic blessings that the entity is obliged to make to different entities due to beyond transactions or different past events,[1] the agreement of which can also result in the transfer or use of assets, provision of services or different yielding of financial advantages in the future. Any form of borrowing from individuals or banks for improving a enterprise or personal income that is payable all through short or long term.
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FILL IN THE BLANK. after successfully overcoming a potential customer's objection to buying the vacuum cleaner he was selling, terrence, a salesperson, asked the customer for an order. terrence is in the ___ stage of the selling process. follow-up approach preapproach closing prospecting
Terrence is at the point where the sale is closing.
What is in demand?Selling is the process by which one person persuades another person to buy a product or use the services that a business is providing.The fact that the guy was persuaded that he needed to buy a vacuum cleaner indicates that he is prepared to make the purchase.Terrance merely inquired as to the customer's order, i.e., the number he would want to purchase or the kind of vacuum cleaner he intended to purchase. As a result, choice D is the best one.Clothing will dominate the market in the years to come. Mobile phones, consumer electronics, footwear, fast food, dietary supplements, beauty products, personal hygiene products, kitchenware, home décor, and other commodities are also in high demand from online shoppers.To learn more about demand refer to
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the xano company reported merchandise inventory at lifo of $450,000 on the year-end financial statements. the company also reported a lifo reserve of $34,000. an estimate of the inventory balance if the inventory had been reported using the fifo assumption is
On the financial statements for the end of the year, the Xano company said that its inventory of goods was $450,000 at the time. A $34,000 lifo reserve was also disclosed by the business. If the inventory had been recorded using the fifo assumption, an estimated inventory balance would be $484,000.
FIFO Inventory is $484,000 (LIFO Inventory is $450,000) + LIFO Reserves are $34,000.
The First-in First-out (FIFO) approach of inventory valuation is predicated on the notion that things are used or sold in the same chronological order as they are purchased. In other words, the earliest purchased or manufactured commodities are sold/removed and expensed first according to the first-in, first-out method. Until the higher tax liability is taken into account, FIFO is the perfect valuation method for companies that need to impress investors.
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What is the market where loans are made to borrowers?.
Secondary loan market is the market where loans are made to borrowers.
Home loans and servicing rights can be bought and sold between creditors and borrowers in the secondary mortgage market. Lenders who issue newly originated mortgages sell a significant portion of those mortgages into this secondary market, where they are bundled into mortgage-backed securities and sold to investors like hedge funds, pension funds and insurance companies. Because of its size and liquidity, the secondary mortgage market contributes to equal access to credit for all borrowers worldwide.
Loan issuers are able to continue funding new loans because of the secondary mortgage market. Mortgage rates would be substantially higher than they are if this market didn't exist, and most people wouldn't even be able to pay for a home.
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once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. this challenge can be undertaken by completing a(n) analysis.
The firm must do Competitor/Competitive Analysis.
What is Competitor Analysis?
It is the process of identifying competitors within an industry and researching their different marketing strategies as well their strength and weaknesses.
It includes scrutinization of competitor's features, market share, pricing, marketing, differentiators, strengths, weaknesses, geography, culture, and customer ratings
It is also known as Competitive Analysis.
Components of Competitor's Analysis:
Porter's 5 ForcesSWOT AnalysisBusiness ModelsCustomer Journey Map or Supply Chain Management ModelsWhat is the purpose of Competitor/Competitive Analysis?
The purpose of competitive analysis is to understand the strengths and weaknesses of competitors compared to your company and to find gaps in the market.
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Evaluation of the performance of managers of profit centers assumes that the managers can control or influence both costs and revenue generation. -True; - False
The following statement "Evaluation of the performance of managers of profit centers assumes that the managers can control or influence both costs and revenue generation" is true.
Products are frequently assessed as profit centers. Managers of profit centers are rated according to how well they are able to make money. Major investment choices, like the choice to construct a new manufacturing facility, would not be within the purview of a profit center manager.
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Chapter 4 deals with emotions, attitudes, and stress. Why should organizations be concerned with occupational stress? What can organizations do to reduce workplace stress, and what can they do to help employees cope with it? What effect does stress have on performance? Is there such a thing as too little stress?
Occupational stress is stress that is in the workplace. The leading causes of this stress are Job Security, people issues, workload and the balance of work and home life.
There are two types of stressors in the workplace: hindrance and challenge. Challenge stressors are associated with workload, job demands, job complexity, and deadlines and are positively related to motivation and performance. Hindrance stressors are ones that inhibit progress toward objectives . Organizations should be concerned with occupational stress because it can have a negative effect on productivity, workplace attitude, attendance, and happiness. Workplace stress can also become contagious as the attitudes of a worker fall, the stress levels of their coworkers are likely to rise and their attitudes likely to turn sour as well.Employee support is crucial for organizations when it comes to combating the negative effects of stress in the workplace. Organizations should be proactive when it comes to coping with stress. They should encourage open and honest conversations in the workplace. This will encourage employees not to take on more than they can handle. They should also provide support to employees, offering time off to deal with mental health and time to spend with family when needed.
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a building is acquired on january 1 at a cost of $970,000 with an estimated useful life of eight years and salvage value of $87,300. compute depreciation expense for the first three years using the double-declining-balance method.
Depreciation expense for the first three years using the double-declining-balance method is: Year 1 = $196,000, Year 2= $156,800 and Year 3= $125,440.
What does a depreciation actually mean?Depreciation is the term used to describe the ongoing, gradual reduction in the book value of fixed assets. This type of shrinkage is determined using the asset's purchase price rather than its market value.
What does depreciation mean in accounting?Depreciation is a non-cash business expense that is calculated over the course of an asset's useful life for your business. Every organization can gain from depreciation by removing the cost of using up a portion of an asset's worth from taxable revenue.
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Many Americans were suspicious of the Second Bank of the United States for which of the following reasons? a) They believed that it was controlled by leaders of the Whig Party.; b) They believed that it was controlled by southern plantation owners; c) They believed that it was controlled by a commercial elite; d) It refused to make any loans for business expansion; e) It refused to exchange bank notes for gold.
Many Americans were suspicious of the Second Bank of the United States because they believed that it was controlled by a commercial elite.
A financial institution with exclusive authority over the creation and distribution of money and credit for a country or a group of countries is known as the central bank. In contemporary economies, monetary policy is typically created by the central bank. The Second Bank of the United States was the country's second Hamiltonian national bank to get government authorization. It was incorporated in Philadelphia, Pennsylvania, between February 1816 and January 1836. The formal name of the Bank was "The President Directors and Company of the Bank of the United States," as stated in section 9 of the charter approved by Congress
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a company pays the membership fee to the american payroll association for an employee in the payroll department. the irc defines this payment as:
A company pays the membership fee to the American Payroll Association for an employee in the payroll department. The IRC defines this payment as working condition fringes.
The American Payroll Association is an association for individuals responsible for processing company payrolls. This Association conducts the payroll training courses and seminars on an yearly basis and publishes the library of payroll resource texts and newsletters.
What is the American Payroll Association responsible for?
American Payroll Association is one of an approximately 120 national psychology associations around the world. American Payroll Association provides a voice for psychology, develops the discipline, and serves its members and society. American Payroll Association also has broad international activity.
What are the two main purposes of American Payroll Association?
The Purpose of American Payroll Association Style
To ensure consistent formatting as well as presentation of information, for the sake of clarity and ease of navigation.To ensure proper attribution of ideas into their original sources, for the sake of intellectual integrity.Learn more about American Payroll Association here:- https://brainly.com/question/28187656
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In column D of a worksheet, Cal lists the number of hours each employee works. What function should he use to find the employee who worked the most hours?
MAX
The max function should be used to find the employee who worked the most hours.
A worker is someone who receives paid to work for a person or company. workers don't need to paint full time to be taken into consideration employees—they truly need to be paid to work by means of a corporation (the individual or business that will pay them).
An employee is a person who works for an organization and earns earnings, while a corporation is someone or an employer who recruits workers to carry out work and responsibilities.
An instance of a worker is an income companion at a retail shop. because the employee should entire tasks in an exact way, together with wearing a name badge and greeting the consumer with specific phraseology, the worker is considered an employee.
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during the airing of a major sitcom the actors eat a popular cereal for breakfast. this type of advertising is known as:
During the airing of a major sitcom the actors eat a popular cereal for breakfast. this type of advertising is known as product placement.
Product placement is a current vending approach for manufacturers to attain their target audiences without the use of overt conventional advertising and marketing. Embedded advertising is any other time period for product placement because the product is embedded in any other form of media.
Product placement, also known as embedded advertising and marketing, is a advertising method where references to unique manufacturers or merchandise are integrated into any other work, together with a film or television software, with unique promotional intent.
Historically there have been three fundamental kinds of product placement; display placement, script placement, and plot placement.
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On March 1, 2022, Oriole Company acquired real estate, on which it planned to construct a small office building, by paying $81,000 in cash. An old warehouse on the property was demolished at a cost of $10,000; the salvaged materials were sold for $2,900. Additional expenditures before construction began included $3,200 attorney's fee for work concerning the land purchase, $5,500 real estate broker's fee, $11,100 architect's fee, and $17,800 to put in driveways and a parking lot.
Determine the amount to be reported as the cost of the land.
Cost of the land $enter the Cost of the land in dollars
For each cost not used in previous part, indicate the account to be debited.
Account to be debited enter an account title $enter a debit amount enter an account title $enter a debit amount
$125,700 amount to be reported as the cost of the land. Expense is required for the asset to be used.
All expenses involved in putting an asset into use are included in the cost of the item. These consist of the item's price after all sales and discounts, sales tax, freight costs, etc.
As long as the expense is required for the asset to be used, it will be capitalised together with the asset's original cost. Other expenses, such as maintenance and insurance charges, are deducted from the asset's cost instead of being included in it.
This is why the reported price of the land
= $81,000 + $10,000 - $2,900 + $3,200 +
= $5,500+ $11,100 + $17,800
= $125,700
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as real gdp rises, tax revenues tend to ________ and government transfers tend to ________.
As real GDP rises, tax revenues tend to rise and government transfers tend to fall.
What is tax revenue?Tax revenue can be defined as the revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes.
The total tax revenue as a percentage of GDP indicates the share of a country's output that is collected by the government through taxes and it is regarded as one measure of the degree to which the government controls the economy's resources.
The tax burden is measured by taking the total tax revenues received as a percentage of GDP.
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a risk that a lender faces in agreeing to change the schedule of payments for a defaulting borrower is that courts may view the change as a new, replacement mortgage, with priority below any other existing lien. this risk is known as
The risk that sees a lender agreeing to change the schedule of payments which leads to courts seeing this change as a new mortgage is known as a recasting risk.
What is the recasting risk?The recasting risk on mortgages is the risk that a court would see the changing of a schedule of payments as a new, replacement mortgage. This then means that this mortgage has a lower priority than other existing liens and debt.
This is not ideal for the lender in the event that the borrower declares bankruptcy as it means that the lender would stand less chances of getting back their debt.
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Eva is going to invest in an account paying an interest rate of 6. 5% compounded annually. How much would eva need to invest, to the nearest cent, for the value of the account to reach $41,000 in 13 years?.
With an annual compound interest rate of 6.5%, in order to get her investment to $41,000 in 13 years, Eva will need to invest $18,081.69
Compound interest is an interest paid on investment that is compounded with the accumulation of principal plus interest from the preceding period. Given that the final amount of a 13 year investment with 6.5% is $41,000. We will then calculate the principal amount with the following formula:
P = Principal
A = Accrued amount (Principal + Interest) = $41,000
r = Annual nominal interest rate as a decimal = 6.5/100 = 0.065 per year
n = number of compounding in a year = 1
t = time in years = 13 years
[tex]P = A / (1 + r/n)^{nt}[/tex]
P = 41,000/(1+0.065/1)⁽¹⁾⁽¹³⁾
P = 18,081.69
Therefore at the beginning, Eva will have to invest a principal of $18,081.69
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during a recession, fewer individuals fly across the country for vacations. as a result, many pilots and flight attendants lose their jobs. these individuals would be classified as
The individuals who lose their jobs will be classified as cyclically unemployed.
Cyclical unemployment is the problem of regular unemployment that immediately follows economic ups and downswings. Typically, during recessions, unemployment increases while falling during economic expansions. An economic downturn, or recession, is a period of negative monetary growth and may be the source of cyclical unemployment. Cyclical unemployment can also result from downturns in an economic cycle where demand for goods and services declines over time.
There is a recession in the given question, hence fewer people are travelling. Because fewer people are travelling, airlines are suffering because they can't make money. As a result, this has an impact on the company's employees, including the pilots, who aren't getting paid and hence losing their jobs. Such a situation is cyclical unemployment
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if the stock price of a target company jumps up when the acquisition of the company is announced, the market . think carefully before you answer this question.
Although the insiders of the acquiring company knew about the purchase beforehand, the market cannot be strong form efficient since the news of the transaction influences the stock price and was not previously priced in.
Which transaction influences the cost?The theory-based variables that affect transaction costs may be divided into four categories: 1) transaction characteristics, 2) transactor characteristics, 3) institutional environment variables, and 4) institutional arrangement variables.There is always a cause-and-effect link inherent in every transaction. For instance, a sale results in a higher balance of accounts receivable. Paying wage expenses results in a drop of cash. Inventory removal results in a rise in cost of goods sold. A hypothesis that includes transaction costs, contracting costs, coordination costs, and search costs when calculating the true cost of outsourcing the production of goods or services. When deciding, all expenses are taken into account in addition to market pricing.Learn more about transaction influence refer to :
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Ginger purchased a single-premium deferred annuity ten years ago at age 45. She used $40,000 of after-tax funds she had accumulated over fifteen years. She decides to surrender the annuity for a lump-sum distribution of its $90,000 value. Which of the following statements is correct?
Group of answer choices
Ginger will owe income taxes on $50,000
Ginger will owe income taxes on $90,000.
Ginger will owe income taxes and a 10% penalty on $90,000.
Ginger will owe income taxes and a 10% penalty on $50,000.
Ginger will owe income taxes and a 10% penalty on $50,000 of the following statements is correct.
Taxable Amount = ( $90,000 - $40,000 ) = $50,000
As the Distribution of Fund is at age 45 which is less than 59.5 , then it subject to 10% penalty
An income tax is a tax imposed on people or entities in respect of the earnings or income earned by means of them. profits tax usually is computed because the made of a tax charge instances the taxable income. Taxation quotes may additionally vary by kind or characteristics of the taxpayer and the kind of earnings.
For instance, if you earn $1,000 in a kingdom with a flat earnings tax fee of 10%, $one hundred in earnings taxes have to be withheld from your paycheck whilst you earn that profits.
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a decision to invest in an electronic data interchange system that would increase invoice accuracy should result in a lower amount of accounts receivable. true false
The statement 'a decision to invest in an electronic data interchange system that would increase invoice accuracy should result in a lower amount of accounts receivable' is true.
In the field of business, accounts receivable can be described as the money that a company or a business has to take from an organization for a product that the company has delivered to the customer but has not received the payment yet.
An electronic data interchange will allow customers to pay for their purchases at that particular time when a purchase is being made. It will be reliable for customers to pay through the electronic data interchange and hence would lower the accounts receivable.
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if a firm that has an annual debt obligation of $40 and generates cash flow of $30, how much will shareholders receive?
Shareholders won't receive anything if a company has an annual debt obligation of $40 and generates a cash flow of $30 because there won't be any left over for equity holders.
How does the cost of equity for a corporation change when debt levels rise?The lowest cost of capital is, in theory, achieved via debt financing because it is tax deductible. But if debt levels are too high, investors will be at more financial risk and will require a higher return on equity. The optimum point at which the marginal benefit of borrowing money equals the marginal cost must therefore be identified by enterprises.
How does loan usage affect free cash flow?If a corporation spends additional funds to pay off debt today, its free cash flow to equity will be lower in the current year. However, as the debt has been repaid and is no longer required to be serviced, this decrease is more than made up for by an increase in free cash flow to equity during the following years.
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An automotive manufacturer wants to know the proportion of new car buyers who prefer foreign cars over domestic.
Step 1 of 2:
Suppose a sample of 390 new car buyers is drawn. Of those sampled, 105 preferred foreign over domestic cars. Using the data, estimate the proportion of new car buyers who prefer foreign cars. Enter your answer as a fraction or a decimal number rounded to three decimal places.
Step 2 of 2:
Suppose a sample of 390 new car buyers is drawn. Of those sampled, 105 preferred foreign over domestic cars. Using the data, construct the 80% confidence interval for the population proportion of new car buyers who prefer foreign cars over domestic cars. Round your answers to three decimal places.
390 new automobile customers are selected as a sample. 105 respondents preferred imported cars to domestic ones is 0.269
Explain about the manufacturer?A manufacturer is a person or company that transforms raw materials into finished goods using a range of tools, apparatus, and techniques, and then sells the goods to consumers, wholesalers, distributors, retailers, or other manufacturers for the development of more complex goods.
Producing new things out of parts or raw materials is known as manufacturing. Manufacturing includes enterprises that create items rather than offering services, such as bakeries, shoemakers, tailors, and automotive businesses.
A company that manufactures completed products from raw materials is known as a manufacturer. A manufacturer could be a natural person or a legally recognized business. He typically initiates the supply chain for any products and distributes them to wholesalers or retailers, as the situation may be.
=x/n=105/390
= 0.269
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What is the cause of emergence of TNC and MNC?.
Globalization is the cause of emergence of TNC and MNC.
One of the main causes of the rise in TNCs is globalization. Many companies have had to adopt a global or international mindset in order to expand and develop. TNCs have also contributed to further globalization, which is a two-way process.
Many TNCs have their headquarters in more economically developed nations like the UK and the USA, and these nations also provide FDI. However, more and more TNCs, like China's Alibaba and India's Tata, are headquartered in LDCs.
The creation of European trading enterprises, particularly those in the Netherlands and England, can be credited with the emergence of MNCs in the late sixteenth century. One of the most notable of them was the Dutch East India Company, which was established in 1602 and charged with utilizing the colonies' natural riches.
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Another term used to describe negative inflation is: counter inflation OA. OB. deflation OC c. hyperinflation GDP deflator D.
Another term used to describe negative inflation is: b). Deflation.
Define Deflation.
Deflation is a broad drop in pricing for goods and services, and it frequently happens in tandem with a decrease in the quantity of credit and cash accessible to the economy. During a deflation, money gains value over time.Deflation is the general decline in the level of pricing for goods and services.Depending on whether the economy, price level, and money supply are shrinking or expanding, different investment opportunities have varying levels of appeal.By definition, a decrease in the amount of money or other financial assets that may be exchanged for it is the only thing that can cause monetary deflation. Modern central banks, such as the Federal Reserve, have the most influence over the money supply. All prices tend to go down when credit and money are less readily available without a corresponding reduction in economic output. Most commonly, extended periods of artificial monetary expansion are followed by deflationary periods.
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knowledge check 01 when a manager has control over and is accountable for cost, profit or investments of an organization, it is called .
When a manager has control over and is accountable for cost, profit or investments of an organization, it is called responsibility center.
An operational unit within a company known as a responsibility center has its own aims and objectives, managing workplace, guidelines and procedures, and financial statements. It is employed to assign managers explicit responsibility for the money invested, spent, or revenue generated. This allows senior managers of a corporation to link individual personnel to particular investment actions and commercial outcomes. This ensures that responsibility is maintained, and it's also possible to do is provide personnel bonuses.
A firm may have several responsibility centers, but there should be at least one. Consequently, a responsibility center is usually a division of a company. These centers are typically listed on an organization chart for a company.
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saola corporation filed its 2022 form 1120-s on december 28, 2023. saola is a calendar-year taxpayer with 30 shareholders. what amount will saola owe for failure to file on time?
Form 1120-S: U.S. Income Tax Return for an S Corporation is used to report the income, losses, and dividends of S corporation shareholders.
Why is there an income tax?Income taxes are imposed by governments as a form of tax on the earnings of the persons and companies that fall under their jurisdiction. Income tax money is used to pay for all aspects of government operations, including public services and citizen goods.
Do all people owe income tax?Everyone is not required to file their taxes. If you must file your taxes, it depends on your income, filing status, age, and any other circumstances you may have. Applying for tax benefits and credits may still be a good idea even if you are exempt from filing taxes.
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a baker wants to establish a pie factory. the cost of leasing the factory is $1,000 per day. the profit-maximizing quantity of pies is 1,000 pies a day. each pie sells for $3 and costs only $2.10 to make. which of the following is a correct conclusion based on this information?
The correct conclusion based on this information is baker should not enter the industry.
What is the profit-maximizing quantity and price?The amount that maximizes profits will be reached when MR = MC, or at the very last moment before marginal expenses start to outpace marginal income. MR = MC happens at an output of 5. The monopolist will set prices based on what the market will bear.The amount of goods produced at which marginal revenue equals marginal cost, or when MR = MC, is the decision that will maximize profits for the monopoly. If the monopoly produces less, MR > MC at those output levels, and the firm can increase profits by increasing output.The company is in the red and must lower its output when marginal revenue is less than marginal cost. Therefore, when a company selects a level of output where its marginal revenue matches its marginal cost, profits are maximized.Learn more about profit-maximizing quantity refer to :
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what causes balance sheet exposure to foreign exchange risk? how does balance sheet exposure compare with transaction exposure?
When a foreign currency balance is converted at the current exchange rate, balance sheet exposure results.
How does transaction exposure compare to exposure on the balance sheet?The foreign currency item is effectively revalued in terms of U.S. dollars on the consolidated financial statements by translating at the current exchange rate. Depending on whether assets translated at the current rate are higher or less than liabilities translated at the current rate, there will either be a net asset balance sheet exposure or a net liability balance sheet exposure.
A translation adjustment is produced by balance sheet exposure but does not cause a cash inflow or outflow. Transaction exposure, which is caused by receiving or exchanging foreign currency, results in realized foreign exchange profits and losses in cash.
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While at this same store, your mom is picking you a sweatshirt from the company that was originally called knickerbocker knitting company. What is this company called?.
The Feinbloom Brothers founded the business in 1919 under the name "Knickerbocker Knitting Company." The Michigan Wolverines and the firm quickly agreed to a contract for the production of team uniforms.
The business changed its name to "Champion Knitting Mills Inc." in the 1930s and started making sweatshirts. Soon after, the US Military Academy started using Champion goods for its physical education classes and training drills.
What is knitting?By manipulating yarn, you can make a textile or cloth by knitting. It is employed to make a variety of clothes. Knitting can be done manually or mechanically. Stitches are yarn loops arranged in a row, either plain or in round, during knitting.
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A representative from a nationally known cookie manufacturer is at a local supermarket distributing samples of a new flavor of cookie that the company has just introduced. The cookie manufacturer is implementing ________ in giving away samples of the cookie.
By providing free samples of the cookie, the cookie company is promoting sales in the current scenario.
What is sales promotion?One component of the promotional mix is sale promotion.
Advertising, personal selling, direct marketing, and publicity/public relations make up the bulk of the promotional mix.
In order to boost customer demand, generate market demand, or improve product availability, sales promotion employs both media and non-media marketing communications for a predetermined, brief period of time.
Examples include giveaways, coupons, discounts, point-of-purchase displays, premiums, prizes, free samples of goods, and rebates. Sales campaigns might target customers, salespeople, or anyone in the distribution chain (such as retailers).
Consumer sales promotions are marketing campaigns that are aimed at consumers.
Trade sales promotions are advertising campaigns aimed at wholesalers and retailers.
So, by providing free samples of the cookie, the cookie company is promoting sales in the current scenario.
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