Answer:
It helps giving you the ability to choose what you think is best for your business
Explanation:
Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).
What you need in order to start and run a business? A place to sell those trees, employees, products, infrastructure, etc., and capital to fund all that. All that business plans and models that you will develop in order to have a successful business will require that you make economic decisions, actions. And, in order to make those decisions, you need economic liberty, which is exactly the ability one has to make economic decisions without political, economic or social blocks.
Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?
That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.
Answer:
Fixed cost= $50,000
Explanation:
The high low method is the process by which highest level of activity ND lowest level of activity are comapred along with total cost at each level. Fixed and variable cost can be calculated using equations.
Variable cost= (Highest activity cost- Lowest activity cost)/(Highest activity unit- Lowest activity unit)
Variable cost= (110,000-87,500)/ (4,000-2,500)
Variable cost= 22,500/ 1,500= $15 per unit
Fixed cost= High activity cost- (Variable cost* High activity units)
Fixed cost= 110,000- (15*4,000)
Fixed cost= 110,000- 60,000
Fixed cost= $50,000
Answer:
The amount which is to be debited to the account of Patents is $35,000
Explanation:
Patent is the right which is given to an investor to stop other people or an individual using or making their invention.
So, company incurred $150,000 for the research and development costs in order to develop the patent and $35,000 is paid for legal fees.
Therefore, the amount of $35,000, is the aggregate amount of patent as it is paid in obtaining the patent.
The implied rate of interest is 4.00%
Explanation:
Principal (initial security worth)- $ 12,800
Final amount - $ 15,573.16
Time taken – 5 years
No additional deposition or withdrawal in between
∴ Rate of interest
This is the problem pertaining to compounding interest.
We know that for compound interest
Amount (A)= Principal(P)(1+R/100)ⁿ
Where R= rate of interest
N= time period
Thus, equation can be rearranged as
A/P=(1+R/100)ⁿ
Substituting the values of A, P and n as $15,573.16, $12800 and 5 years respectively
15573.16/12800=(1+R/100)⁵
Solving the above equation we would get R as 4%
Answer:
The correct answer is letter "A": Risk identification.
Explanation:
Risk identification is one of the steps used in the risk management process. Risks are determined through the measurement of the parameters that define them, the size of the loss or possible damage, and the possibility that the loss or damage eventually takes place.
