Ultimate Business Study Guide - Questions & Answers

Cary, Dean, and Madeline are partners in a furniture store. Madeline wants to buy some antiques from an upcoming estate sale. Dean thinks its a good idea, but Cary says it is too pricey. Madeline goes ahead and buys the antiques. Which of the following best describes the situation?A. All three partners must agree on the furniture purchase.B. The estate can hold the partnership liable, but Madeline has breached her duty to the partnership.C. Cary will not be liable to the estate on the antiques contract.D. The partnership and all three partners will be liable on the contract for the antiques.
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Which of the following is the best reason to use cash for purchases?a. Getting more from the ATM is easy to dob. Keeping track of how much you have spent is simplec. Splitting bills with friends is easierd. Losing it won't be a big deal
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Dickson Co. has asked you to help the select a backhoe. You have a choice between a wheel-mounted version which costs $50,000 and has a life of 5 yrs with a salvage value of $3,000 or a track mounted version which costs $80,000 and has a life of 8 yrs with a salvage value of $5,000. Both machines will have the same productivity and operating costs. If the MARR is 10% which machine will you recommend?
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Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow-days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to: a. $280 U b. $280 F c. $920 U d. $920 F
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Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki receives his one-half interest as compensation for tax planning services he rendered prior to the formation of the LLC. Wilcox contributes $50,000 cash. The value of a one-half capital interest in the LLC (for each of the parties) is $50,000.How much income does Wozniacki recognize as a result of this transaction, and what is the character of the income?
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Jim Arnold began a business called Arnold's Shoe Repair. Required:1. Complete the T accounts for Cash; Supplies; Jim Arnold, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts:a. Invested cash in the business, $7,000. b. Purchased supplies for cash, $800. c. Paid utility bill, $1,500.
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Kameron Gibsons bank statement showed a balance of $954.35. Kamerons checkbook had a balance of $259.60. Check No. 104 for $116.90 and check No. 105 for $19.15 were outstanding. A $721.40 deposit was not on the statement. He has his payroll check electronically deposited to his checking accountthe payroll check was for $1,320.30. There was also a $17.50 teller fee and an $22.70 service charge.Required:1. Prepare Kameron Gibsons bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places.)
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Stubs-R-Us is a local event ticket broker. Last year, the company sold 750,000 tickets with an average commission of $10. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. In addition, employees at a local insurance company headquarters accounted for 8 percent of Stubs volume. The headquarters relocated to another state and all the employees closed their accounts. Offsetting these factors is the observation that the average commission per sale is likely to increase by 13 percent because the average ticket prices are expected to be larger in the coming year. Required: Estimate commission revenues for Stubs-R-Us for the coming year.
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More Competition: You are in a head-to-head battle with your arch competitor, Evil Enterprises. One of your co-workers approaches you. He has recently joined your company after having worked for a second competitor for several years. He suggested, "I made notes on all of Evil's bids when I could get the data. They use some clear cost standards. Would you like me to bring my notes to the office tomorrow and let you look through them?
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Journalize the following transactions of Trapper Jons Productions. Assume 360 days in a year. June 23. Received a $48,000, 90-day, 8% note dated June 23 from Radon Express Co. on account. Sept. 21. The note is dishonored by Radon Express Co. Oct. 21. Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Radon Express Co. on September 21.
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1. Assuming that crowding out is not an issue, if Congress increases business taxes at the same time that the Federal Reserve conducts an open market sale, output and price level are likely to change in which of the following ways? Output / Price Level A. Increase / Decrease. B. Decrease / Increase C. Indeterminate / Decrease.D. Decrease / Indeterminate.E. Decrease / Decrease.2. The election of a new president resulted in a significant increase in business confidence regarding the economy. How will this new confidence impact the loanable funds market in the short run?Demand for Loanable Funds / Real Interest RateA. Increase / Increase.B. Increase / Decrease.C. Increase / No Change.D. Decrease / Decrease.E. Decrease / Increase3. When a banks excess reserves increase by $375 after $500 was deposited in the bank, the reserve requirement must bea. 10 percent. b. 15 percent. c. 20 percent. d. 25 percent. e. 30 percent.
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Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions:May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500.5. Received cash from clients on account, $2,450.9. Paid cash for a newspaper advertisement, $225.13. Paid Office Station Co. for part of the debt incurred on April 5, $640.15. Recorded services provided on account for the period May 115, $9,180.16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.17. Recorded cash from cash clients for fees earned during the period May 116, $8,360.Record the following transactions on Page 6 of the journal:20. Purchased supplies on account, $735.21. Recorded services provided on account for the period May 1620, $4,820.25. Recorded cash from cash clients for fees earned for the period May 1723, $7,900.27. Received cash from clients on account, $9,520.28. Paid part-time receptionist for two weeks' salary, $750.30. Paid telephone bill for May, $260.31. Paid electricity bill for May, $810.31. Recorded cash from cash clients for fees earned for the period May 2631, $3,300.31. Recorded services provided on account for the remainder of May, $2,650.31. Kelly withdrew $10,500 for personal use.Instructions:Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet using the following adjustment data. Insurance expired during May is $275. Supplies on hand on May 31 are $715. Depreciation of office equipment for May is $330. Accrued receptionist salary on May 31 is $325. Rent expired during May is $1,600. Unearned fees on May 31 are $3,210. If an amount box does not require an entry, leave it blank or enter "0". Kelly Consulting End-of-Period Spreadsheet (Work Sheet) For the Month Ended May 31, 20Y8: Unadjusted Adjustments Adjusted Income Balance Trial Balance Trial Balance Statement Sheet Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accum. Depreciation Accounts Payable Salaries Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Earned Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense Net income
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How do you get cheap airline tickets?
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3)SNG's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15% rate and are expected to continue to grow at this rate for 3 more years. No dividends have been declared as yet, but the firm intends to declare a $2.00 dividend at the end of the last year of its supernormal growth. After that, dividends are expected to grow at the firm's normal growth rate of 6%. The firm's required rate of return is 18%. You should:
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Its mid January and football season is quickly coming to a close That means its time for the SUPERBOWL!!!! So lets have some fun and throw a Superbowl* party for 30 of our closest friends. With 2 weeks to go, lets put your Project Management skills to use so we can plan, prepare for and host an epic party.Required:1) What is the objective of your project? What does success look like? State it in your words.2) What are the key tasks or activities leading up to and during the party itself; list out at least 25. Consider how long it will take to perform each of the tasks. An estimate is fine. For example, if one of your tasks is to "Thaw out the frozen chicken wings", you might estimate 4 hours for this.3) Do any tasks have to be completed before others can start, meaning for the identified tasks are there any predecessors? Which tasks are truly independent?4) Using excel or a hand drawing, draft out a project schedule, showing the order of tasks from start to finish. Identify the critical path.5) Do you have enough time to get ready for the party? If so, when do you have to start your first activity?6) Uh-oh your car broke down and you couldnt get it fixed in time to start shopping for your project plan. You are now 1 day behind schedule. How can you crash the schedule? At what cost (approximate)?7) Other than your car breaking down, what are the key risks to your schedule? Identify at least 3 risks and discuss how you might mitigate them.
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Property Rights and Corruption When looking at a country as a market or investment, the international business must consider the country's legal system. In that assessment, the firm needs to understand the differences between private actions, which refer to theft, piracy, blackmail, and the like from individuals or groups, and public actions, which are those actions taken by politicians and government bureaucrats. Either kind of action would pose a serious threat to the firm's investment or operations. Before the firm can seek legal remedies, it must clearly understand the options open to it.In a legal sense, property refers to a resource over which an individual or a business holds a legal title. It is a resource that it owns. Countries differ in the extent to which their legal systems define and protect property rights, even those countries that are still nominally communist states. Property rights can be violated, sometimes by governments and sometimes by individuals or groups.1. Pleae select that whether below items are the Private Action or Public Action?a. legal mechanisms b. theft or blackmail c. organized crime/ protection money d. bribery e. weak legal system f. corruptionOptions:O Private ActionO Public Action
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Suppose that Greece and Switzerland both produce oil and olives. Greece's opportunity cost of producing a crate of olives is 5 barrels of oil while Switzerland's opportunity cost of producing a crate of olives is 10 barrels of oil. By comparing the opportunity cost of producing olives in the two countries, you can tell that _______ has a comparative advantage in the production of olives and ________ has a comparative advantage in the production of oil.Suppose that Greece and Switzerland consider trading olives and oil with each other. Greece can gain from specialization and trade as long as it receives more than ________ of oil for each crate of olives it exports to Switzerland. Similarly, Switzerland can gain from trade as long as it receives more than ________ of olives for each barrel of oil it exports to Greece. Based on your answers to the previous question, which of the following terms of trade (that is, price of olives in terms of oil) would allow both Switzerland and Greece to gain from trade? a. 2 barrels of oil per crate of olives b. 12 barrels of oil per crate of olives c. 9 barrels of oil per crate of olives d. 1 barrel of oil per crate of olives
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enter mia's total profit/loss for the month in the box below then click submit
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Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of ten years, and an estimated salvage value of $14,000. The machine will increase the company's net income by approximately $9,600 per year. All revenue and expenses other than depreciation will be received and paid in cash.Required:1. The expected rate of return on average investment of the machine is ____________. a. 10.0% b. 48.0% c. 17.0% d. 18.6%
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The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $49,000 from the issue of common stock. Purchased equipment inventory of $176,500 on account. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. Paid the sales tax to the state agency on $153,000 of the sales. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. Paid $5,500 for warranty repairs during the year. Paid operating expenses of $53,500 for the year. Paid $124,200 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.Prepare the income statement, balance sheet, and statement of cash flows for year 1.
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The Machining Department supervisor has been very pleased with this performance because actual expenditures for JanuaryMarch have been less than the monthly static budget of $335,000. However, the plant manager believes that the budget should not remain fixed for every month but should "flex" or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:Wages per hour $15.00Utility cost per direct labor hour $1.20Direct labor hours per unit 0.75Planned monthly unit production 100,000Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places. Enter all amounts as positive numbers.
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Delsing Canning Company is considering an expansion of its facilities. Its current income statement is as follows:Sales $ 6,200,000Variable costs (50% of sales) 3,100,000Fixed costs 1,920,000Earnings before interest and taxes (EBIT) $ 1,180,000Interest (10% cost) 440,000Earnings before taxes (EBT) $ 740,000Tax (30%) 222,000Earnings after taxes (EAT) $ 518,000Shares of common stock 320,000Earnings per share $ 1.62The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.2 million in additional financing. His investment banker has laid out three plans for him to consider:Sell $3.2 million of debt at 14 percent.Sell $3.2 million of common stock at $20 per share.Sell $1.60 million of debt at 13 percent and $1.60 million of common stock at $25 per share.Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,420,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.60 million per year for the next five years.Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following:Required:a. The break-even point for operating expenses before and after expansion (in sales dollars). (Enter your answers in dollars not in millions, i.e, $1,234,567.)b. The degree of operating leverage before and after expansion. Assume sales of $6.2 million before expansion and $7.2 million after expansion. Use the formula: DOL = (S TVC) / (S TVC FC). (Round your answers to 2 decimal places.)c-1. The degree of financial leverage before expansion. (Round your answers to 2 decimal places.)c-2. The degree of financial leverage for all three methods after expansion. Assume sales of $7.2 million for this question. (Round your answers to 2 decimal places.)d. Compute EPS under all three methods of financing the expansion at $7.2 million in sales (first year) and $10.1 million in sales (last year). (Round your answers to 2 decimal places.)
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1. What is a limited liability company?
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Match each scenario with the source of monopoly market power. 1. Mary McFly invents a time machine and gets legal protection from competition. 2. Main Line Utilities can operate at a lower cost than multiple electric companies. 3. The author of Economics for Dumbbells is given exclusive rights to produce this book. 4. Your city council gives All Talk Communication Services exclusive rights to build high speed internet infrastructure in your town.5. DeJeers Jewelers owns 80% of the world's diamond mines.Options:O PatentO Economies of ScaleO Control over ResourcesO Government licencingO Copyright
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