All categories

2 years ago

Your friend is a business owner in a planned economy. In a few sentences, explain how central authority impacts his business.

Business

1 answer:

loris [4]2 years ago

7 0

Answer with Explanation:

A "Centrally Planned Economy" refers to an economy where the government's authority affects the economic decisions of the business owners. This means that the business owners and the consumers do not have a say when it comes to their decisions regarding the supply and demand of the items.

This also means that the business owner cannot decide on what product he will be producing, including its process of production and distribution.

Additional Explanation:

Although the command economy signals a lack of freedom for business owners, it has some advantages as well. It results to low unemployment level. The government has the ability to set the number of workers that the business owners will hire in order to address the unemployment rate. Products and services that will be produced are all directed for the good of the people. It is not "profit-driven."

You might be interested in

: A Notary Signing Agent decides to expand his business by offering new services. With respect to advertising, the NSA should av

enot [183]

A Notary Signing Agent decides to expand his business by offering new services. With respect to advertising, the NSA should avoid advertising himself in a place that is already being occupied by another Notary and advertising himself during meetings. It is important for a new Notary Signing Agent to advertise himself and his services, but there is a proper way to handle any and all advertisements.

7 0

1 year ago

Lightfoot Company sells its product for $55 per unit and has variable costs of $30 per unit. Total fixed costs are $25,000. Supp

soldi70 [24.7K]

Answer:

The Break-even point in units will increase by 250 units.

Explanation:

Giving the following information:

Fixed costs= $25,000

Selling price= $55

Unitary varaible cost= $30

First, we need to calculate the current break-even point in units:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 25,000 / 25

Break-even point in units= 1,000

Now, the new Break-even point in units:

Break-even point in units= 25,000 / (55 - 35)

Break-even point in units= 1,250

The Break-even point in units will increase by 250 units.

7 0

1 year ago

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has

PSYCHO15rus [73]

Answer:

= $132,000.

Explanation:

There are two types of fixed costs, general fixed cost and specific fixed cost.

General fixed costs are those that cannot be traced to a specific product rather they are incurred for the benefit of all of the product being produced. For example,the rent of the factory where three products are being produced

So they are unavoidable should a product be ceased for production that is they would still be incurred either way.

Specific fixed costs are those incurred specifically for a particular product and as such they would be saved should the product be discontinued. For example , if a special machine that cost $4000 a month to rent is used to produce a product. The $4000 would be saved should the production of the product ceases

The net operating cost of the company would increase by the amount of the avoidable specific fixed cost:

=$90,000 + $42,000

= $132,000.

3 0

2 years ago

Blue Ice Inc. is an American corporation. The company started out as a 1. ____ between Nick Selver and Rita Andrew in 1985. In 2

Andrei [34K]

1) Partnership. Nick Selver and Rita Andrew began the company as a partnership.
2) partners: This word best describes the interest-holding people in a partnership
3) Incorporate: This word best describes converting the partnership to a corporation in order to democratize ownership of the company and sell stock publicly
4) Stock Market: This is the market in which shares of a public company are traded on the open market.

6 0

2 years ago

The company's adjusted trial balance as follows includes the following accounts balances:

frozen [14]

Answer:

Closing Journal Entries:

1. Debit Fees Earned $56,000

Credit Income Statement $56,000

To close the account for the period.

2. Debit Income Statement $25,000

Credit Depreciation Expense $25,000

To close the account for the period.

3. Debit Income Statement $23,000

Credit Salaries Expense $23,000

To close the account for the period.

4. Debit Income Statement (Retained Earnings) $2,000

Credit Dividends $2,000

To close the account for the period.

Explanation:

Closing entries are journal entries that are made to close temporary (periodic) accounts, revenue and expenses to the Income Statement. This paves the way for only permanent accounts to remain for the Balance Sheet. Temporary accounts are not carried forward to the next period unlike permanent accounts.

Closing entries transfer all revenue and expense accounts at the end of an accounting period to an income summary account, for the purpose of calculating the financial performance results (called gross profit and net income or loss) for the period.

7 0

1 year ago