Answer:
43%
Explanation:
See attached picture for explanation.
Answer:
The decision that is not relevant to Andrew is:
b. Cost of the old house.
Explanation:
a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges. It is a sunk or past cost. Past costs are not relevant because they do not make a difference in the decision or the alternative to choose. Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.
Answer:
0.45
Explanation:
Total Asset turnover is the relationship between the total asset and the total sales. It measure the turnover generated by assets and shows how fully a company is utilizing its assets.
It is calculated as Net Sales / Average Total asset.
Average total asset is calculated as Asset at Beginning + Asset at closing / 2
Applying the formula
The total sales = $900,000 while the total asset is $2, 000,000
$900,000/$2,000,000 = 0.45
Note: The beginning and closing Asset were not given so $2,000,000 is regarded to as the average asset.
Answer:
The correct answer is "market risks are uninsurable and in fact, his business policy does not cover those."
Explanation:
When talking about an uninsurable risk, we must bear in mind precisely that the insurance covers defined, individualized and limited risks, but not all risks are insurable.
The insurance company cannot assume abstract risks, which are not contemplated in the policy. To know what coverage to look for and what risk can be insurable, a series of characteristics have been stipulated: the risk must be uncertain and random, possible, future, concrete, fortuitous, lawful and of economic content.
Sole Proprietorship- A type of business organization that has one owner. The owner is personally liable for paying the business's debts.
Characteristics
Ownership: Owned by 1 person.
Formation: No formal filing or agreement necessary to form.
Liability: Owner could lose personal assets to meet obligations of business.
Closing: Ends with death of owner or closing of business.
