Answer:
Correct Answer:
only a monopolistically competitive firm operates at its efficient scale.
Explanation:
In a given market, a given organization or firm could operate either in a monpolistically competitive or perfectively competitive at its efficient scale. However, in the long run, only a monopolistically competitive firm operates at its efficient scale.
Answer:
The firm's receivable turnover is 20 times
Explanation:
The computation is shown below:
Accounts receivable turnover ratio = (Credit sales ÷ average accounts) receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($0 + $50,000) ÷ 2
= $25,000
And, the net credit sale is $500,000
Now put these values to the above formula
So, the answer would be equal to
= ($500,000 ÷ $25,000)
= 20 times
And, the average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 360 days ÷ 20
= 18 days
Answer: A firm may operate in multiple industries.
Different firms may use different accounting practices.
Explanation:
Ratio Analysis as you probably know is a very useful tool in financial analysis. It works by comparing ratios based on items in the financial statements of a company to measure certain things such as the Company's Liquidity, Profitability and the like.
It does have certain drawbacks though such as,
A firm may operate in multiple industries
When a firm is operating in multiple industries. Comparing ratios is not a simple task. Different industries record profits and costs differently and just because a ratio is held in high esteem on one company does not mean it is good in another thereby making comparison based on ratios alone quite cumbersome.
Different firms may use different accounting practices
Now if different companies use different Accounting practices, you might find that ratios cannot be straightforwardly compared because different types of figures were used by the different companies. For instance, some companies might use a Straight Line Depreciation method as opposed to a Reducing Balance method which will have varying effects on income.
Answer:
The amount of the change in the earnings per share as a result of this change in the capital structure will be $0.16
Explanation:
all equity equity and debt
expected EBIT $600 $600
interest (-) ($192)
profit before tax $600 $408
tax (-) (-)
earnings to equity share holders $600 $408
number of equity sahes 500 300
earnings per share $1.20 $1.36
change in the earnings per share = $1.36 - $1.20
= $0.16
Therefore, The amount of the change in the earnings per share as a result of this change in the capital structure will be $0.16
Answer:
The correct answer is d. controlling.
Explanation:
If there is an important section in project management, it is the control section. Once it has been decided to start, with the execution, the project manager must assume the responsibility of each person within the same fulfills the tasks assigned to him and thus, ensure that the project runs according to his planning.
The idea of project control is very simple: it has been elaborated with some objectives, studying the available resources and preparing a plan to achieve the goals. Control is what ensures the follow-up of these plans, preventing any team member from deviating from the marked route. Thanks to the control tasks, the achievement of objectives will be ensured as defined in the planning phase.
When the project has already been planned, it should be put in place. The main requirement to start is that the project is fully defined and approved by the steering committee or the shareholders' meeting and, where appropriate, by the sponsor of the actions to be carried out.
