The three scenarios mentioned involve different types of control. Scenario 1 demonstrates the use of administrative control, Scenario 2 represents the use of concurrent control, and Scenario 3 exemplifies the use of corrective control.
In Scenario 1, where the chief engineer schedules repair and service of machinery every two months, administrative control is being applied. This control involves setting policies, procedures, and schedules to ensure that activities are carried out in a planned and organized manner. By implementing a regular maintenance schedule, the chief engineer is exercising administrative control to prevent breakdowns and ensure smooth operations.
In Scenario 2, where patients in the ICU wards are monitored round the clock by nurses, concurrent control is being employed. Concurrent control involves real-time monitoring and immediate corrective actions. The nurses' continuous monitoring of ICU patients allows them to identify any deviations from the desired conditions and take necessary measures promptly to ensure the patients' well-being.
In Scenario 3, where Toyota recalls specific car models to replace malfunctioning airbags, corrective control is being utilized. Corrective control focuses on rectifying deviations or errors that have already occurred. Toyota's recall action addresses the issue by replacing the faulty airbags, correcting the problem that has been identified to ensure the safety of their customers.
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Which of the following statements is true? I. Land, capital, entrepreneurial ability and labor are all considered to be economic resources II. All economic resources are scarce except for land and labor which have unlimited availability. O I Only O II Only O Both I and II O Neither I nor II
Statement I is true. Land, capital, entrepreneurial ability, and labor are indeed considered to be economic resources.
These resources play a crucial role in the production process and contribute to the creation of goods and services in an economy. Land provides the physical space for production, capital represents the machinery, equipment, and financial assets used in production, entrepreneurial ability involves the coordination and management of resources, and labor refers to the human effort and skills employed in production.
Statement II is false. All economic resources, including land and labor, are subject to scarcity. Scarcity arises from the fundamental economic problem of unlimited wants and needs in the face of limited resources. While land and labor may be more abundant compared to some other resources, they are still limited in quantity and must be allocated efficiently to meet various demands. The concept of scarcity drives the need for resource allocation, economic decision-making, and the efficient utilization of available resources.
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During the months of January. Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1240 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $1120 with terms 2/10,n/30. 14 Paid Noah in full. 30 Paid Emma in full. On January 14 , when Ava pays Noah, the credit to cash will be?
When Ava Corporation pays Noah in full on January 14, the credit to cash will be $1,240.
Ava Corporation purchased goods from Noah on January 6 for $1,240 with terms 2/10, n/30. The terms 2/10, n/30 mean that a 2% discount is offered if payment is made within 10 days, otherwise the full amount is due within 30 days. Since Ava Corporation paid Noah in full on January 14, which is within the discount period, they are eligible for the 2% discount. Therefore, the credit to cash will be the discounted amount, which is $1,240 - (2% of $1,240) = $1,240 - $24.80 = $1,215.20.
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equipment as a result ? Selected Answer: B. The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment. Answers: A. The Price of personal protective equipment would decrease, signaling to producers that less production is needed. B. The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment. C. The Supply of personal protective equipment would decrease as production becomes more expensive. D. The Price of personal protective equipment would decrease because Producers could not meet the Demand at lower prices. E. None of the Above
The Price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment would be the effect of increasing the cost of production of equipment.
What is the effect of increasing the cost of production of equipment?The effect of increasing the cost of production of equipment is that the price of personal protective equipment would increase, signaling to consumers that they should purchase less personal protective equipment.
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The dividend irrelevance hypothesis is based on all of the following assumptions except:
a. borrowing decisions will not be altered by the amount of dividend payments.
b. investment decisions will not be altered by the amount of dividend payments.
c. perfect capital markets.
d. investors do not need cash dividends to supplement their current income.
The assumption that investors do not need cash dividends to supplement their current income is not a part of the dividend irrelevance hypothesis.
In fact, one of the key assumptions of the dividend irrelevance hypothesis is that investors have no preference between receiving dividends and capital gains. This means that investors are assumed to be indifferent to whether a company distributes its profits as dividends or retains them for reinvestment.
The dividend irrelevance hypothesis is based on the following assumptions:Borrowing decisions will not be altered by the amount of dividend payments.Investment decisions will not be altered by the amount of dividend payments. Perfect capital markets.
So, the correct answer is:d. Investors do not need cash dividends to supplement their current income.
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Wan's AGI last year was $274,000. Her Federal income tax came to $82,200, paid through both withholding and estimated payments. This year, her AGI will be $411,000, with a projected tax liability of $61,650, all to be paid through estimates. Wan wants to pay the least amount of tax during the year that does not incur a penalty. If required, round intermediate calculations to two decimal place and your final answer to the nearest dollar. a. Compute Wan's total estimated tax payments for this year. Under the current-year method: $ Under the prior-year method: $
b. Assume instead that Wan's AGI last year was $92,000 and resulted in a Federal income tax of $18,400. Determine her total estimated tax payments for this year.
Under the current-year method: $ Under the prior-year method: $
Under the current-year method, total estimated tax payments for this year = $15,413 + $63,800 = $79,213. Under the prior-year process, the taxpayer must pay estimated tax payments based on the previous year's tax liability. This year's estimated tax payments would equal the prior year's tax liability of $18,400. Under the prior-year method, this year's total estimated tax payments would be $18,400.
a. Compute Wan's total estimated tax payments for this year under the current-year method: $68,166. Under the prior-year process: $82,200. AGI (Adjusted Gross Income) for the year is calculated, and then the tax liability is calculated and paid by the taxpayer through estimated tax payments or withholding tax payments. If the tax payments made by the taxpayer are less than the required amount of tax liability, then the taxpayer is required to pay the penalty on the unpaid tax. Therefore, the taxpayer must pay the least tax during the year that does not incur liability. Calculation of total estimated tax payments for this year -Current-year method -Under the current-year process, taxpayers must pay estimated tax payments based on their current year's income. If the estimated payments made by the taxpayer are at least equal to the required amount of tax liability, then no penalty will be imposed. If the taxpayer has a high current-year income, they will have to pay more estimated tax payments in the current year to avoid penalties. The current year's AGI is $411,000, and the projected tax liability is $61,650, which will be paid through estimates. Total estimated tax payments for this year = $61,650. Estimate Tax payments are =Total Tax liability is $61,650. They are subtracting this from the estimated withholding payment of $61,650 - $0 = $61,650. Under the current-year method, total estimated tax payments for this year = $61,650. Prior-year method -Under the prior-year process, the taxpayer must pay estimated tax payments based on the previous year's tax liability. No penalty will be imposed if the taxpayer pays estimated tax payments equal to or greater than the last year's tax liability. Total estimated tax payments for this year would be similar to the prior year's tax liability of $82,200. Under the prior-year method, this year's total estimated tax payments would be $82,200.
b. Assume instead that Wan's AGI last year was $92,000 and resulted in a Federal income tax of $18,400. Determine her total estimated tax payments for this year. Under the current-year method: $27,840. Under the prior-year process: $18,400. Calculation of total estimated tax payments for this year -Current-year way -The current year's AGI is $411,000, and the projected tax liability is $61,650, which will be paid through estimates. To determine the estimated tax payments, the taxpayer must divide the tax liability by the required installments made during the year. In general, the IRS requires taxpayers to make four equal payments throughout the year, but in some instances, the IRS may require different payment amounts or a different number of payments. The number of estimated tax payments required depends on the estimated tax liability for the year and the taxpayer's income. The total number of estimated tax payments required = 4. Total estimated tax payments for this year = ($61,650 ÷ 4) = $15,412.50. Rounding to the nearest dollar, the total estimated tax payments for this year under the current-year method = $15,413.This year's estimated withholding payment would be = $82,200 - $18,400 = $63,800. Thus, Under the current-year plan, total estimated tax payments for this year = $15,413 + $63,800 = $79,213. Under the prior-year process, the taxpayer must pay estimated tax payments based on the previous year's tax liability. This year's estimated tax payments would equal the prior year's tax liability of $18,400. Under the prior-year method, this year's total estimated tax payments would be $18,400.
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A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is
p = $38 +2,700/D −5,000/D2, for D > 1,
where p is the price per unit in dollars and D is the demand per month.
The company is seeking to maximize its profit. The fixed cost is $1,000 per month and the variable cost (Cv) is $40 per unit.
a. What is the number of units that should be produced and sold each month to maximize profit?
b. Show that your answer to Part (a) maximizes profit
To maximize profit, produce and sell the quantity where marginal revenue equals marginal cost.
To determine the number of units that should be produced and sold each month to maximize profit, we need to find the quantity at which the marginal revenue equals the marginal cost. This quantity corresponds to the maximum point on the profit curve.
The marginal revenue (MR) is the derivative of the revenue function with respect to the quantity, and the marginal cost (MC) is the derivative of the cost function with respect to the quantity.
Given the demand function p =[tex]$38 + 2,700/D - 5,000/D^2,[/tex] we can derive the revenue function R(D) as follows:
R(D) = p * D
R(D) = [tex](38 + 2,700/D - 5,000/D^2) * D[/tex]
R(D) = 38D + 2,700 - 5,000/D
The marginal revenue is the derivative of R(D) with respect to D:
MR(D) =[tex](38 + 2,700/D - 5,000/D^2) * D[/tex]
The cost function C(D) can be calculated as follows:
C(D) = Cv * D + fixed cost
C(D) = $40 * D + $1,000
The marginal cost is the derivative of C(D) with respect to D:
MC(D) = 40
To find the quantity that maximizes profit, we set MR(D) equal to MC(D) and solve for D:
[tex]38 - 2,700/D^2 + 5,000/D^3 = 40[/tex]
Simplifying the equation and solving for D can be quite complex and may require numerical methods or approximation techniques. Once we find the value of D, we can calculate the corresponding price (p) using the demand function and determine the profit by subtracting the total cost (TC) from the total revenue (TR).
To show that the solution maximizes profit, we can compare the profit obtained at the calculated quantity with the profits obtained at neighboring quantities. If the profit is higher at the calculated quantity, we can conclude that it represents the maximum profit point.
In summary, to find the number of units that maximize profit, we solve the equation MR(D) = MC(D) to obtain the optimal quantity (D). Then, we calculate the corresponding price (p) using the demand function and determine the profit by subtracting the total cost (TC) from the total revenue (TR). By comparing the profit obtained at the optimal quantity with profits at neighboring quantities, we can verify that the solution indeed maximizes profit.
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View Policies Show Attempt History Current Attempt in Progress Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $1.836 cash. 2 Paid $6,630 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,672 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school. 4. Signed a contract for cleaning services starting December 1 for $1,020 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments) 5. On December 5, received $1.530 in advance from a gaming club. Determined that on December 31, $490 of these games had not yet been played. (a) Asset, Liability or Equity item that was reduced.) epd. Prepd. Clean. tent Save for Later 1020 Liabilities Unearned Serv. Rev. Com. Stock Attempts: 0 of 2 used Submit Answer
The given information involves various transactions related to prepayments and advance receipts. Let's analyze each transaction and identify the corresponding asset, liability, or equity item that was reduced.
1. Purchased a 1-year insurance policy on June 1 for $1,836 cash.
This transaction involves the prepayment of an insurance policy. The asset "Cash" is reduced by $1,836, and the asset "Prepaid Insurance" is increased by the same amount.
2. Paid $6,630 on August 31 for 5 months' rent in advance.
In this transaction, the payment made for 5 months' rent in advance reduces the asset "Cash" by $6,630. The asset "Prepaid Rent" increases by the same amount.
3. On September 4, received $3,672 cash in advance from a corporation for sponsoring a game each month for a total of 9 months.
Here, the receipt of cash in advance for future game sponsorships results in an increase in the asset "Cash" by $3,672. The liability "Unearned Service Revenue" is recorded with the same amount, representing the obligation to provide the game sponsorships.
4. Signed a contract for cleaning services starting December 1 for $1,020 per month. Paid for the first 2 months on November 30.
This transaction involves the prepayment for cleaning services. The payment made for the first two months reduces the asset "Cash" by $2,040. The asset "Prepaid Cleaning" is increased by the same amount, representing the prepayment.
5. On December 5, received $1,530 in advance from a gaming club. Determined that on December 31, $490 of these games had not yet been played.
Upon receiving the advance payment of $1,530, the asset "Cash" increases. However, since $490 worth of games had not been played by the end of the year, the liability "Unearned Service Revenue" is reduced by $490.
In summary, the asset, liability, or equity items that were reduced due to the transactions are as follows:
- Prepaid Insurance (Asset)
- Prepaid Rent (Asset)
- Unearned Service Revenue (Liability)
- Prepaid Cleaning (Asset)
- Unearned Service Revenue (Liability)
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A public accounting firm would least likely be considered in violation of the AICPA Independence Rule in which of the following instances?
(1)A partner’s checking account, which is fully insured by the Federal Deposit Insurance Corporation, is held at a financial institution for which the public accounting firm performs attest services.
(2)A manager of the firm donates services as vice president of a charitable organization that is an audit client of the firm.
(3)An attest client owes the firm fees for this and last year’s annual engagements.
(4)A covered member’s dependent son owns stock in an attest client."
Among the given instances, (1)A partner's checking account being held at a financial institution for which the public accounting firm performs attest services is least likely to be considered a violation of the AICPA Independence Rule.
The AICPA (American Institute of Certified Public Accountants) independence rule sets guidelines to ensure that public accounting firms maintain objectivity and independence when performing audit and attest services for clients. It prohibits financial relationships, employment relationships, and other situations that may impair independence.
In instance (1), the partner's checking account being held at a financial institution does not directly create a financial relationship with the client. As long as the partner's account is fully insured by the Federal Deposit Insurance Corporation (FDIC) and there are no other circumstances that could impair independence, such as loans or significant financial interests in the institution, it would least likely be considered a violation of the independence rule.
However, it's important to note that the independence rule is complex, and the specific circumstances surrounding each situation should be carefully evaluated to ensure compliance. Consulting with professional accountants or referring to specific professional standards would provide more accurate guidance in determining independence.
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On October 31, 2024, the bank statement for the cash account of Cousins Video shows a balance of $12.985, while the company's records show a cash balance of $12.366. Information that might be useful in preparing a bank reconciliation is as follows: points awarded Scored a. Outstanding checks are $1,265. b. The October 31 cash receipts of $820 are not deposited in the bank until November 2. ebook c. The EFT payment for utilities of $144 is correctly recorded by the bank but is recorded by Cousins as a disbursement of $414 d. In accordance with prior authorization, the bank withdraws $557 directly from the account as payment on a note payable. The interest portion of that payment is $57 and the principal portion is $500 Cousins has not recorded the direct withdrawal. e. Bank service fees of $31 are listed on the bank statement References 1. A deposit of $574 is recorded by the bank on October 13, but it did not belong to Cousins. The deposit should have been made to the account of Hollybuster Video, a separate company.
Prepare a bank reconciliation for the Cousins checking account on October 31, 2024.
There is a difference of $1,301 ($12,416 - $11,115) between the adjusted bank statement balance and the adjusted company's cash balance.
To prepare a bank reconciliation for the Cousins checking account on October 31, 2024, we need to go through the provided information and make the necessary adjustments. Here's the bank reconciliation:
Start with the bank statement balance: $12,985
Start with the company's cash balance: $12,366
a. Outstanding checks: $1,265
Deduct the outstanding checks from the bank statement balance:
Bank Statement Balance - Outstanding Checks = $12,985 - $1,265 = $11,720
b. Deposits in transit:
Add the deposits in transit to the company's cash balance:
Company's Cash Balance + Deposits in Transit = $12,366 + $820 = $13,186
c. Recording discrepancy (EFT payment for utilities):
Adjust the company's cash balance to reflect the correct amount:
Company's Cash Balance - Recording Discrepancy = $13,186 - ($414 - $144) = $12,916
d. Unrecorded direct withdrawal:
Deduct the unrecorded direct withdrawal from the company's cash balance:
Company's Cash Balance - Unrecorded Direct Withdrawal = $12,916 - $500 = $12,416
e. Bank service fees:
Deduct the bank service fees from the bank statement balance:
Adjusted Bank Statement Balance - Bank Service Fees = $11,720 - $31 = $11,689
f. Incorrect deposit:
Deduct the incorrect deposit from the adjusted bank statement balance:
Adjusted Bank Statement Balance - Incorrect Deposit = $11,689 - $574 = $11,115
Now we have the adjusted bank statement balance and the adjusted company's cash balance. The two balances should match.
Adjusted Bank Statement Balance: $11,115
Adjusted Company's Cash Balance: $12,416
The two balances do not match, indicating there is a discrepancy that needs to be resolved.
It appears that there is a difference of $1,301 ($12,416 - $11,115) between the adjusted bank statement balance and the adjusted company's cash balance. This difference needs to be investigated and reconciled to ensure the cash records are accurate.
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trojan company is considering a new investment project. The company knows that the project will generate a net cash inflow of $310,000 in the first year, but is unsure about the rate at which the cash flows will grow per year forever. The project requires an initial investment of $3.2 million. At what constant growth rate would the company just break even if the required rate of return is 13 percent? Do not round intermediate calculations and your answer as a percent rounded to 3 decimal places, 32.164)
Insurance is a risk management mechanism in which an individual or an entity, known as the insured, transfers the risk of potential financial losses to an insurance company, known as the insurer. In exchange for regular premium payments, the insurer provides financial protection and compensation to the insured in the event of specified risks or perils occurring.
The main purpose of insurance is to provide financial security and peace of mind by mitigating the potential impact of unforeseen events or losses. Insurance policies are designed to cover a wide range of risks, such as property damage, personal injury, liability claims, medical expenses, or loss of income.
Common types of insurance include auto insurance, home insurance, health insurance, life insurance, and business insurance. Each type of insurance has specific coverage and provisions tailored to the nature of the risk being insured.
It is important to note that insurance is a contractual agreement, and both the insured and the insurer have certain rights and obligations.
User
trojan company is considering a new investment project. The company knows that the project will generate a net cash inflow of $310,000 in the first year, but is unsure about the rate at which the cash flows will grow per year forever. The project requires an initial investment of $3.2 million. At what constant growth rate would the company just break even if the required rate of return is 13 percent? Do not round intermediate calculations and your answer as a percent rounded to 3 decimal places, 32.164)
ChatGPT
To determine the constant growth rate at which the company would just break even, we can use the formula for the present value of a growing perpetuity.
The formula for the present value of a growing perpetuity is:
PV = CF / (r - g)
Where:
PV = Present value
CF = Cash flow in the first year ($310,000 in this case)
r = Required rate of return (13% or 0.13)
g = Growth rate of cash flows
We need to solve for the growth rate (g). Rearranging the formula, we have:
g = CF / PV - r
Substituting the given values, we have:
g = $310,000 / $3,200,000 - 0.13
g = 0.096875 - 0.13
g = -0.033125
The negative value indicates that the cash flows are not growing but declining. Since it is not possible for cash flows to decline indefinitely and still break even, there is no constant growth rate at which the company would just break even in this scenario.
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Insurance is a risk management mechanism in which an individual or an entity, known as the insured, transfers the risk of potential financial losses to an insurance company, known as the insurer. In exchange for regular premium payments, the insurer provides financial protection and compensation to the insured in the event of specified risks or perils occurring.
The main purpose of insurance is to provide financial security and peace of mind by mitigating the potential impact of unforeseen events or losses. Insurance policies are designed to cover a wide range of risks, such as property damage, personal injury, liability claims, medical expenses, or loss of income.
Common types of insurance include auto insurance, home insurance, health insurance, life insurance, and business insurance. Each type of insurance has specific coverage and provisions tailored to the nature of the risk being insured.
It is important to note that insurance is a contractual agreement, and both the insured and the insurer have certain rights and obligations.
trojan company is considering a new investment project. The company knows that the project will generate a net cash inflow of $310,000 in the first year, but is unsure about the rate at which the cash flows will grow per year forever. The project requires an initial investment of $3.2 million. At what constant growth rate would the company just break even if the required rate of return is 13 percent? Do not round intermediate calculations and your answer as a percent rounded to 3 decimal places, 32.164)
To determine the constant growth rate at which the company would just break even, we can use the formula for the present value of a growing perpetuity.
The formula for the present value of a growing perpetuity is:
PV = CF / (r - g)
Where:
PV = Present value
CF = Cash flow in the first year ($310,000 in this case)
r = Required rate of return (13% or 0.13)
g = Growth rate of cash flows
We need to solve for the growth rate (g). Rearranging the formula, we have:
g = CF / PV - r
Substituting the given values, we have:
g = $310,000 / $3,200,000 - 0.13
g = 0.096875 - 0.13
g = -0.033125
The negative value indicates that the cash flows are not growing but declining. Since it is not possible for cash flows to decline indefinitely and still break even, there is no constant growth rate at which the company would just break even in this scenario.
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Discrimination is prohibited in the workplace? Why?
What do you think is the best strategy to attract more applicants in the organization? Why?
(8 sentences or more)
Discrimination is prohibited in the workplace to ensure a fair and equal opportunity for all employees. Discrimination based on race, gender, age, religion, or any other characteristic can create a hostile work environment that negatively affects employee morale and productivity. Additionally, it is illegal and violates various anti-discrimination laws, such as the Civil Rights Act of 1964.
To attract more applicants to an organization, there are several strategies that can be employed. One approach is to develop a strong employer brand that highlights the company's culture and values. This can be achieved through marketing campaigns, social media outreach, and positive online reviews. Another strategy is to offer competitive compensation and benefits packages, which can include health insurance, retirement plans, and paid time off.
Organizations can also look at diversifying their recruiting methods to reach a wider pool of candidates. For example, they can partner with educational institutions and professional organizations to promote job openings and establish relationships with potential applicants. Additionally, creating a referral program for current employees can incentivize them to recommend qualified candidates.
Another effective strategy is to provide opportunities for professional growth and development. Offering training programs, mentorship opportunities, and clear career paths can make an organization more attractive to job seekers who value long-term career goals.
Finally, it is important for organizations to create an inclusive and welcoming workplace culture. This can be achieved by promoting diversity and inclusion initiatives, providing a flexible work schedule, and promoting work-life balance.
Overall, attracting more applicants requires a multifaceted approach that considers various factors such as compensation, work culture, and career growth opportunities. By implementing these strategies, organizations can increase their chances of attracting top talent and building a stronger workforce.
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A corporation's management is the responsibility of its shareholders.
True
False
Question 11 It is possible to form a business partnership without having intended to do so.
True
False Question 12 (1-1 point) A business who is owned by one person must necessarily be a sole proprietorship. True
False Question 13 A shareholder's right to receive their share of the capital has priority over creditors. True False
No, the management of a corporation is not the responsibility of its shareholders.
Do shareholders have the responsibility for managing a corporation?In the given statements:
1) "A corporation's management is the responsibility of its shareholders."
This statement is false. The management of a corporation is typically entrusted to a board of directors who are responsible for making strategic decisions and overseeing the company's operations. Shareholders, on the other hand, have the right to elect the board of directors and influence major decisions through voting but are not directly responsible for day-to-day management.
2) "It is possible to form a business partnership without having intended to do so."
Explanation: This statement is false. Forming a business partnership requires the intention and agreement of two or more individuals to enter into a formal business arrangement. It is not possible to accidentally or unintentionally form a partnership.
3) "A business owned by one person must necessarily be a sole proprietorship."
Explanation: This statement is true. A business owned by a single individual without any formal legal structure or registration is considered a sole proprietorship. In a sole proprietorship, the owner has complete control and unlimited personal liability for the business.
4) "A shareholder's right to receive their share of the capital has priority over creditors."
Explanation: This statement is false. In the event of a company's liquidation or bankruptcy, creditors typically have priority over shareholders in terms of receiving payment. Creditors are entitled to be repaid their debts before any remaining assets are distributed to shareholders.
Overall, the statements indicate the importance of understanding different business structures, ownership rights, and the hierarchy of claims in various scenarios.
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Choose a professional team of your choice. Develop a list of
revenue streams (at least five) for the chosen team.
The professional team I have chosen is the Manchester United football club. The five revenue streams for Manchester United are merchandise sales, matchday revenue, broadcasting revenue, sponsorships and partnerships, and ticket sales.
Merchandise sales refer to the sales of club-branded merchandise such as jerseys, hats, scarfs, etc. Matchday revenue is generated from ticket sales and sales of food, beverages, and merchandise at the stadium during match days. Broadcasting revenue is earned from the television rights to broadcast the matches. Sponsorships and partnerships involve endorsement deals and collaborations with other brands. Lastly, ticket sales refer to the revenue generated from the sale of tickets to matches.
Overall, these five revenue streams are vital for the financial success of Manchester United and help the club maintain its position as one of the most valuable football clubs in the world.
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How can a contract be discharged? A. When the parties to the contract have performed their obligations under the contract. B. When the parties to the contract agreed not to continue with the performance of the contract. c. When the contract becomes impossible to perform or illegal to perform. D. All of the above. What are the conditions of making an offer? A. It must be absolute. B. It must be unqualified. C. It must be communicated to the offeree. D. All of the above. Ali entered into a contract with Mansor on the sale of his car for $5000. But Mansor could not pay when Ali handed his car to him. What legal action can Ali take against Mansor? A. Ali can rescind or end the contract. B. Ali can rescind the contract and claim damages from Mansor. C. Ali cannot take any legal action against Mansor. D. None of the above.
A contract can be discharged: D. All of the above.
The conditions of making an offer are: D. All of the above. In the given scenario, Ali entered into a contract with Mans or for the sale of his car. However, Mans or could not pay when Ali handed the car to him. In this case, the legal action Ali can take against Mans or is: B. Ali can rescind the contract and claim damages from Mans or . Since Mans or failed to fulfill his payment obligation, Ali has the right to rescind the contract, essentially canceling it, and can also seek damages to recover any losses incurred due to Mans breach of contract.
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Please answer the following questions that are associated with
the problem?
You will manufacture your product offshore because the labor
rates are significantly lower. However, getting up and running
Manufacturing a product offshore due to lower labor rates can be advantageous, but it also involves challenges in terms of initial setup and operational considerations.
Manufacturing a product offshore can provide cost advantages through lower labor rates, which can significantly reduce production expenses. This can lead to higher profit margins and increased competitiveness in the market. Offshore manufacturing also offers access to specialized skills and expertise that may not be available locally, enabling the production of high-quality products.
However, setting up manufacturing operations offshore requires careful planning and consideration. There are several challenges involved, such as navigating the legal and regulatory requirements of the foreign country, establishing relationships with local suppliers and vendors, and overcoming potential language and cultural barriers.
Despite the initial challenges, once the manufacturing process is successfully established offshore, the benefits of lower labor costs can be significant. Moreover, offshore manufacturing can also enable companies to tap into new markets and expand their customer base.
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Aqua Manufacturing Limited is one of the leading dry blend beverage companies in Jamaica. Their portfolio includes Aqua Food Drink, La-Soy Lactose-Free, Porridge Mix, Whole Milk and Readi Milk. These are all household names that stand for quality throughout the Caribbean, North America, Canada and the UK. As a company with global intent, it has a strong business relationship with its suppliers. Either independently or through contract manufacturers, the company manufactures, markets, and sells a variety of products through its export division. Required:
A. What are FOUR (4) ways in which a firm like Aqua Manufacturing benefits from good sourcing decisions? (12 marks)
B. For a manufacturer that sells to many retailers, why does a quantity flexibility contract with its retailers result in less information distortion than a buy-back contract?
Aqua Manufacturing benefits from good sourcing decisions in four ways: ensuring quality control, cost reduction, supply chain efficiency, and fostering strong supplier relationships.
1. Quality Control: Good sourcing decisions enable Aqua Manufacturing to select reliable suppliers who consistently provide high-quality raw materials. This ensures that their final products meet quality standards, resulting in customer satisfaction and a positive brand reputation.
2. Cost Reduction: Effective sourcing decisions allow Aqua Manufacturing to identify suppliers offering competitive pricing for raw materials. By negotiating favorable terms and securing cost-effective supplies, the company can reduce production costs and maintain profitability.
3. Supply Chain Efficiency: Selecting reliable and efficient suppliers ensures a smooth flow of raw materials and minimizes disruptions in production. This leads to improved supply chain management, reduced lead times, and enhanced operational efficiency.
4. Strong Supplier Relationships: Building strong relationships with suppliers through good sourcing decisions fosters collaboration and mutual understanding. This can lead to preferential treatment, such as priority access to materials, improved communication, and the ability to leverage supplier expertise and innovation.
In the context of selling to multiple retailers, a quantity flexibility contract allows manufacturers like Aqua Manufacturing to adjust the quantities of products supplied based on actual demand. This flexibility reduces information distortion because the manufacturer has direct access to sales data from each retailer. They can accurately respond to changes in demand and adjust production accordingly.
On the other hand, a buy-back contract, where the manufacturer repurchases unsold inventory from retailers, can lead to information distortion. Retailers may be inclined to misreport or manipulate sales data to receive higher buy-back payments, leading to inaccurate information and potential inefficiencies in production planning and inventory management.
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Explain why supply chain process management is so important to the success of supply chain trading partners. Provide a "real world" example.
Supply chain process management is essential for trading partners to achieve operational efficiency, collaboration, risk mitigation, and customer satisfaction. It allows them to align their processes, leverage data, and optimize their operations to meet customer demands and stay competitive in the marketplace.
Supply chain process management is crucial to the success of supply chain trading partners for several reasons:
1. Improved Efficiency: Effective supply chain process management ensures streamlined operations, optimized inventory levels, and reduced lead times. This leads to improved efficiency and cost savings for trading partners. For example, efficient order processing, inventory management, and transportation coordination can minimize delays and lower costs along the supply chain.
2. Enhanced Collaboration: Supply chain process management encourages collaboration and information sharing among trading partners. By aligning processes and sharing data, partners can improve coordination, reduce bottlenecks, and enhance overall supply chain performance. For instance, sharing real-time sales data between a retailer and its suppliers allows for better demand planning and inventory replenishment.
3. Risk Mitigation: Managing supply chain processes enables partners to identify and address potential risks proactively. By monitoring key performance indicators (KPIs) and implementing contingency plans, partners can mitigate disruptions and improve resilience. An example is the use of advanced analytics and predictive modeling to assess potential supply chain disruptions and develop mitigation strategies.
4. Customer Satisfaction: Effective supply chain process management helps ensure timely and accurate order fulfillment, leading to improved customer satisfaction. By delivering products to customers when and how they expect them, trading partners can enhance their reputation and build customer loyalty. A real-world example is Amazon's supply chain, which focuses on seamless order processing, fast delivery, and exceptional customer service, contributing to its success as an e-commerce giant.
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On January 1, 2018, Big Corp purchased 30% of the outstanding common shares of Little Corp for $60,000 when the net assets were valued at $200,000. During 2018 Little Corp earned $80,000 and declared a dividend of $40,000. Big accounted for the investment using the equity method. The market value of Little's stock at the end of 2018 was $500,000. For 2018, with respect to this investment, Big would report income from affiliate of $12,000 $24,000 $40,000 $80,000
For the year 2018, Big Corp would report income from the affiliate of $24,000 in relation to its investment using the equity method in Little Corp.
The equity method is used by an investor when it has significant influence over the investee but does not have control. Under the equity method, the investor recognizes its share of the investee's earnings or losses as income or expense.
In this case, Big Corp purchased 30% of the outstanding common shares of Little Corp for $60,000 when the net assets were valued at $200,000. This implies that Big Corp acquired a significant influence over Little Corp.
During 2018, Little Corp earned $80,000. As per the equity method, Big Corp would recognize 30% of this earnings, which amounts to $24,000, as its income from the affiliate.
Additionally, Little Corp declared a dividend of $40,000. Since Big Corp owns 30% of the shares, it would receive 30% of the dividend, which is $12,000. However, dividends received from the affiliate are not considered as income under the equity method.
The market value of Little Corp's stock at the end of 2018, which is $500,000, does not impact the income recognition under the equity method.
Therefore, for the year 2018, Big Corp would report income from the affiliate of $24,000 in relation to its investment using the equity method in Little Corp.
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List three advantages of teamwork. Define diversity management and list two possible advantages of diversity management.
Teamwork offers several advantages, including increased productivity, improved problem-solving capabilities, and enhanced employee satisfaction.
One advantage of teamwork is increased productivity. When individuals collaborate effectively in a team, they can combine their skills, knowledge, and efforts to accomplish tasks more efficiently. Each team member contributes their unique strengths, leading to enhanced productivity and achieving goals more effectively than if working individually.
Another advantage is improved problem-solving capabilities. Teams bring together diverse perspectives, experiences, and expertise. By leveraging this diversity, teams can generate a wider range of ideas and approaches to problem-solving. This allows for more comprehensive analysis, creative thinking, and innovative solutions.
Teamwork also contributes to enhanced employee satisfaction. Collaboration and shared responsibilities foster a sense of belonging, engagement, and camaraderie among team members. When individuals feel valued and connected to their team, they are more likely to experience job satisfaction, motivation, and a sense of fulfillment.
Diversity management refers to the intentional practice of valuing and leveraging individual differences within a team or organization. It involves creating an inclusive environment where individuals of different backgrounds, cultures, experiences, and perspectives are recognized, respected, and encouraged to contribute their unique insights and ideas.
One advantage of diversity management is increased creativity and innovation. When teams consist of diverse individuals, there is a broader range of perspectives and ideas brought to the table. This diversity of thought stimulates creativity and promotes innovative thinking, as individuals from different backgrounds offer unique insights and approaches to problem-solving and decision-making.
Another advantage is better decision-making through diverse insights and viewpoints. By incorporating diverse perspectives, teams can avoid groupthink and benefit from a wider range of opinions, experiences, and knowledge. Diverse viewpoints challenge assumptions, encourage critical thinking, and lead to more well-rounded and informed decision-making processes. This can result in more effective and well-rounded outcomes, as different perspectives and approaches are considered and integrated into the decision-making process.
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A) Total Control Co. Issues A Product Recall Due To A Significant Defect Discovered After The End Of Its Fiscal Year. Financial Statements Have Not Yet Been Issued. The Loss From The Recall Is Estimated At $50 Million. What Action Is Required By Total Control Co. Regarding The Contingency From The Recall? Explain. B) Wind Co Suffered A
Problem # 10
A) Total Control Co. issues a product recall due to a significant defect discovered after the end of its fiscal year. Financial statements have not yet been issued. The loss from the recall is estimated at $50 million.
What action is required by Total Control Co. regarding the contingency from the recall? Explain.
B) Wind Co suffered a significant flood after the date of reporting their balance sheet at the end of year 3, but prior to the date of an auditor’s report. The flood had a significant direct effect on Wind Co’s inventory, and thus their financial statements' inventory section.
How should Wind Co handle this flood event? Explain.
C) On March 21, Year 2, Quick company with a calendar year-end issued its Year 1 financial statements. On February 28, Year 2, Quick’s only manufacturing plant was severely damaged by a storm and had to be shut down. Total property losses were $10 million and determined to be material. The amount of business disruption losses is unknown.
How should the impact of the storm be reflected in the company's Year 1 financial statements. Explain.
(a) The loss from a product recall is not recorded as a liability until it is deemed probable that the cost will be incurred and the amount can be measured reliably.(b) The insurance claim amount, if applicable, must also be disclosed in the notes to the financial statements. (c)non-adjusting event note to the financial statements of Year 1.
A) Total Control Co. has to report the recall contingency as a footnote to its financial statements as it occurs after the end of the fiscal year but before the financial statements' issuance.
According to the financial accounting standards, the loss from a product recall is not recorded as a liability until it is deemed probable that the cost will be incurred and the amount can be measured reliably.
B) After the balance sheet has been issued but before the auditor’s report is released, Wind Co should disclose the flood as a non-adjusting event in the notes to the financial statements.
The insurance claim amount, if applicable, must also be disclosed in the notes to the financial statements.
Wind Co should also assess the impact of the flood on the company's operations and finances and disclose it in the Management Discussion and Analysis section of the financial statements.
C) The impact of the storm that damaged Quick Company's only manufacturing plant is a non-adjusting event that occurred after the balance sheet date but before the financial statements' issuance.
The Company should disclose the incident and its effect on the business, property losses, and how the impact will be dealt with in the future as a non-adjusting event note to the financial statements of Year 1.
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A manufacturing company has a capacity of 200.000 units annally. The fined cost ef the poduction line is $100,000 per year with a variable cost of 94 per unit and the price of 57 per unit. The percentage of capacity that must be utilized for the company to breakieven in: Select one: a. 50%
b. 22%
c. 66,7%
d. 16,7%
e. 33,3%
The percentage of capacity that must be utilized for the company to break even is 66.7% (option c). This is because the company needs to exceed its capacity in order to cover the fixed costs and reach the breakeven point.
To determine the percentage of capacity that must be utilized for the company to break even, we can calculate the breakeven point using the given information. The breakeven point is the level of production at which total revenue equals total cost.
Let's denote the capacity as C = 200,000 units per year, the fixed cost as FC = $100,000 per year, the variable cost per unit as VC = $94, and the price per unit as P = $57.
The breakeven point can be calculated using the following formula:
Breakeven Point = Fixed Cost / (Price per Unit - Variable Cost per Unit)
Substituting the values into the formula, we get:
Breakeven Point = $100,000 / ($57 - $94)
Calculating this expression yields a breakeven point of -666.67, which means the company would need to produce more than 200,000 units to break even.
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Which of the following statements best describes the activities of a whistle-blower? O Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire. O Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine. OA former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider. O The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold. O A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use. Question 6 10 p Which of the following statements best describes the activities of a whistle-blower? O Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire. O Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine. OA former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider. O The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold. O A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use.
The statement that best describes the activities of a whistle-blower is: "A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use."
A whistle-blower is an individual who exposes or reports wrongdoing or illegal activities within an organization to authorities or the public. Whistle-blowers play a crucial role in exposing misconduct, promoting transparency, and protecting the interests of consumers or the public.
In the given options, the activity that aligns with the concept of a whistle-blower is when a Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use. By reporting this information, the employee is raising concerns about a potential hazard and disclosing internal knowledge to an external regulatory authority. Whistle-blowers often act in the interest of public safety and hold organizations accountable for their actions.
Therefore, the activity of a whistle-blower in this scenario is the Mattel employee reporting the safety concern to the Consumer Product Safety Commission.
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A firm expects to sell 35,000 units of its product at $12 per unit. Net Income is predicted to be $35,000. If the variable costs per unit are $4.50, what must total fixed costs be?
Total fixed costs must be $227,500.
To calculate the total fixed costs, we can use the contribution margin formula, which is the selling price per unit minus the variable cost per unit. In this case, the contribution margin per unit is $12 - $4.50 = $7.50.
The contribution margin ratio can be calculated by dividing the contribution margin per unit by the selling price per unit: ($7.50 / $12) = 0.625.
We know that the net income is predicted to be $35,000, which is equal to the contribution margin ratio multiplied by the total sales revenue. Therefore, $35,000 = 0.625 * Total Sales Revenue.
We can rearrange the equation to find the total sales revenue: Total Sales Revenue = $35,000 / 0.625 = $56,000.
Finally, we can calculate the total fixed costs by subtracting the total variable costs from the total sales revenue: Total Fixed Costs = Total Sales Revenue - (Variable Cost per Unit * Number of Units Sold) = $56,000 - ($4.50 * 35,000) = $227,500.
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Giorgio and his wife decide to spend a week in Nova Scotia and they find a getaway package offered through Sapal travel agency in Mississauga, where a friend of Giorgio works as a manager. A reservation (return flight and hotel) is made over the phone for a total cost of $2930 including the agency fee. During the phone call, Giorgio and the travel agent agree to finalize the payment in person within 3 days. However, two days after this phone call, Giorgio becomes unable to travel due to an unexpected injury. Therefore, Giorgio calls the travel agency and notify the cancellation of the booking. The travel agent informs him that the reservation made over the phone was final and Giorgio had to settle the full payment as per the agreed amount of the package. Upon Giorgio’s refusal, the agent claims they will bring him to Court for breach of contract.
1: Sapal Travel Agency will win in court because this is a valid contract. Explain why you sustain this position and highlight which are the 6 elements of the contract traceable in this case.
2: Sapal travel agency will be unsuccessful in Court because the reservation made by Giorgio over the phone does not qualify as a contract. Explain why you sustain this position, based on an analysis of the essential elements of a contract that could - or could not – be traced in this case scenario.
1: Sapal Travel Agency will win in court because this is a valid contract, with the six elements of a contract present.
2: Sapal travel agency will be unsuccessful in Court because the reservation made by Giorgio over the phone does not qualify as a contract due to missing essential elements.
1: Sapal Travel Agency will win in court because this is a valid contract. The six elements of a contract traceable in this case are:
Offer: The travel agency offered a getaway package to Giorgio over the phone.Acceptance: Giorgio accepted the offer by making the reservation and agreeing to finalize the payment.Consideration: Giorgio agreed to pay the total cost of $2930, including the agency fee.Capacity: Both parties were capable of entering into a contract.Intent: Both parties intended to create a legal relationship and engage in the transaction.Legality: The contract does not involve any illegal activities.2: Sapal travel agency will be unsuccessful in court because the reservation made by Giorgio over the phone does not qualify as a contract. The essential elements of a contract that are not traceable in this case scenario include:
Agreement: There was no mutual agreement regarding the cancellation terms or the consequences of cancellation.Consideration: Giorgio was unable to provide consideration (payment) due to unforeseen circumstances.Intent: Giorgio's unexpected injury prevented him from fulfilling his intention to travel, making the contract impracticable.Communication of acceptance: Giorgio notified the travel agency about the cancellation, indicating his unwillingness to proceed with the contract.Considering these missing elements, the phone reservation may not be legally binding, and Sapal travel agency may not have grounds to enforce payment or claim breach of contract in court.
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The first safe elevator designed for passengers was installed in a store in what city? O Philadelphia Boston New York City O Chicago
The correct answer is option (C). Summary: The first safe elevator designed for passengers was installed in New York City.
Elevators have a long history, but the introduction of safe and reliable elevators for public use began in the mid-19th century. One notable pioneer in elevator technology was Elisha Otis, who demonstrated the safety of his elevator design at the Crystal Palace Exhibition in New York City in 1854.
While other cities, such as Philadelphia, Boston, and Chicago, have played significant roles in the development and use of elevators, it was New York City where the first safe elevator designed for passengers was installed. New York City's vertical expansion and the need to efficiently transport people and goods in tall buildings contributed to the early adoption of elevators.
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1) X-ray film used in the radiology lab at your local hospital.
2) The commission for lab test technician was paid on the each patient
3) Lab test technicians are supervised by a supervisor who is paid $50,000 per year
4) Electrical costs are $2 per ultra sound machine-hour. 0.5 machine hours are required to do the full body check for a patient.
5) The straight-line amortization cost of the ultra sound machine used to do body check for patients totals $10,000 per year.
6) The salary of the president of Grace Care hospital is $100,000 per year.
7) Grace Care hospital spends $250,000 per year to advertise its products
8) Instead of treating patient, Grace Care hospital could have rented one of its lab room out at a rental income of $30,000 per year. Determine the costs concepts
The costs concepts include consumable supplies, variable costs based on patient volume, fixed costs for personnel salaries and overhead expenses, depreciation costs, opportunity costs, and marketing expenses.
The costs concepts in the given scenarios can be summarized as follows:
1)X-ray film used in the radiology lab at your local hospital: This represents the cost of consumable supplies used in providing radiology services.
2)The commission for lab test technician was paid on each patient: This is a variable cost that is directly tied to the number of patients served. It is an incentive-based payment for lab test technicians.
3) Lab test technicians are supervised by a supervisor who is paid $50,000 per year: This is a fixed cost as the supervisor's salary remains the same regardless of the number of patients or services provided.
4) Electrical costs are $2 per ultrasound machine-hour. 0.5 machine hours are required to do the full body check for a patient: This is a variable cost that depends on the usage of ultrasound machines, specifically the number of machine-hours consumed to perform services.
5)The straight-line amortization cost of the ultrasound machine used to do body checks for patients totals $10,000 per year: This is a fixed cost that represents the annual depreciation expense of the ultrasound machine, allocated evenly over its useful life.
6) The salary of the president of Grace Care hospital is $100,000 per year: This is a fixed cost representing the salary of the president, which remains constant regardless of the hospital's activities.
7) Grace Care hospital spends $250,000 per year to advertise its products: This is a fixed cost associated with marketing and advertising expenses to promote the hospital's services.
8) Instead of treating patients, Grace Care hospital could have rented one of its lab rooms out at a rental income of $30,000 per year: This represents an opportunity cost, as the hospital foregoes potential rental income by using the lab room for its own operations.
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KADS, Inc., has spent $440,000 on research to develop a new computer game. The firm is planning to spend $240,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $54,000. The machine has an expected life of three years, a $79,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new game is expected to be $640,000 per year, with costs of $290,000 per year. The firm has a tax rate of 40 percent, an opportunity cost of capital of 11 percent, and it expects net working capital to increase by $120,000 at the beginning of the project.
The project to develop a computer game involves an initial research cost of $440,000, a machine cost of $240,000, shipping and installation costs of $54,000, and annual revenue of $640,000.
To assess the financial feasibility of the project, several calculations need to be made. First, the depreciation expense for the machine can be determined using the MACRS depreciation schedule for a 7-year class life. The depreciation expense will reduce the taxable income, resulting in a tax shield. The net cash flows from the project can be calculated by subtracting the costs from the revenue, taking into account depreciation and taxes.
Next, the net working capital investment of $120,000 needs to be considered. This investment will increase at the beginning of the project but will be recovered at the end. The net cash flows from the project can be discounted using the opportunity cost of capital of 11% to calculate the project's net present value (NPV).
By comparing the NPV to zero, the project's financial viability can be determined. If the NPV is positive, it indicates that the project is expected to generate a return higher than the opportunity cost of capital and is financially feasible. Conversely, a negative NPV would suggest that the project is not expected to meet the required return.
A comprehensive analysis considering the cash flows, tax effects, depreciation, and net working capital allows for a thorough evaluation of the project's financial viability.
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t/f Call scripting falls under the category of the sales department's CRM tools
The given statement is False, Call scripting is a technique or strategy that can be used to improve communication within a company.
Call scripting falls under the category of customer service department’s CRM tools. By utilizing call scripting, customer service employees will be able to improve their communication with customers by following a predefined script. This can help to ensure that customer service employees provide accurate and relevant information to customers in a timely manner.
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Question 7 A company had free cash flows of $765 million last year. Free cash flows are expected to grow at 2.5% per year. The WACC for the firm is 10%. They currently have $3.5 billion in debt outstanding, and have 117 million common stock outstanding. The company does not have any preferred stock. What is the estimate of the stock price based on the firm valuation model? Add your answer I 1 Point
Using the firm valuation model, we can estimate the stock price using the following formula: Share Price = (Free Cash Flow * (1 + Growth Rate)) / (Number of Shares * (1 + Weighted Average Cost of Capital - Growth Rate))
Assumed: $765 million in Free Cash Flow 2.5% is the growth rate. The weighted average cost of capital, or WACC, is 10%. Outstanding Debt = $3.5 billion 117 million Common Shares are now outstanding. By utilising the WACC to discount the free cash flows to their present value, we must first determine the firm's total market value: Total Company Value is calculated as Free Cash Flow / (WACC - Growth Rate). $765 million / (0.10-0.025) is the total firm value. $9,562.5 million is the whole firm value. Next, we calculate the equity value by deducting the outstanding debt from the overall firm value.
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getting a commitment from the customer to purchase your product is also known as
Getting a commitment from the customer to purchase your product is also known as closing the sale.
Closing the sale is a critical stage in the sales process where the salesperson seeks to secure a commitment from the customer to make a purchase. It involves guiding the customer towards a final decision and overcoming any objections or hesitations they may have. Closing techniques can vary depending on the sales situation and the b needs.
Closing the sale requires effective communication, active listening, and understanding the customer's buying signals. The goal is to create a sense of urgency and address any remaining concerns to gain the customer's agreement to move forward with the purchase.
Successful closing techniques involve using persuasive strategies such as presenting compelling benefits, offering incentives, demonstrating value, or providing limited-time offers. The salesperson must also be adept at handling objections and resolving any doubts or reservations the customer may have.
Closing the sale is crucial for achieving sales , generating revenue, and building customer relationships. It signifies the culmination of the sales process and the beginning of a mutually beneficial transaction between the seller and the customer.
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