The two (2) steps that are required using the allowance method, include the following:
b. later write-off specific customer balances when they are known to be uncollectible.
c. first make an end-of-period adjustment to record the estimated bad debts.
What is an allowance method?In Economics, an allowance method can be defined as one of the two ways that is used by financial accountants for reporting bad debts that arises due to the sales of goods or services to customers (service takers) on credit.
According to the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), an allowance method should be used for debts and uncollectibles, unless the uncollectibles are immaterial to a business organization (comapny or firm).
In conclusion, the first step under the allowance method is simply to make an end-of-period adjustment that would be used for recording the estimated bad debts.
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Complete Question:
The 2 steps required using the allowance method, are to _____. (Select the 2 that apply.)
a. later make an end-of-period adjustment to record the estimated bad debts
b. later write-off specific customer balances when they are known to be uncollectible
c. first make an end-of-period adjustment to record the estimated bad debts
d. first write-off specific customer balances
High quality, rapid decision making is necessary in industries characterized by constant, turbulent change in products, ______, and technology.
High-quality, rapid decision-making is necessary for industries characterized by a constant turbulent change in products, leadership, and technology.
In macroeconomics, an industry is a department of an economy that produces a closely-associated set of uncooked materials, goods, or services. For instance, one may discuss with the timber enterprise or to the coverage enterprise.
When comparing an unmarried organization or company, its dominant supply of sales is generally used via way of means of enterprise classifications to categorize it inside a particular enterprise. For instance, the International Standard Industrial Classification (ISIC) – used without delay or thru derived classifications for the legitimate statistics of maximum nations worldwide – classifies "statistical gadgets" via way of means of the "financial interest wherein they especially engage". The industry is then described as a "set of statistical gadgets which are categorized into the equal ISIC category".However, an unmarried business wants now no longer belongs simply to at least one enterprise, which includes whilst a massive business (regularly called a conglomerate) diversifies throughout separate industries.
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Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows:
Thalassines Kataskeves, S.A.
Income Statement—Bilge Pump
For the Quarter Ended March 31
Sales $ 470,000
Variable expenses:
Variable manufacturing expenses $ 123,000
Sales commissions 50,000
Shipping 10,000
Total variable expenses 183,000
Contribution margin 287,000
Fixed expenses:
Advertising (for the bilge pump product line) 23,000
Depreciation of equipment (no resale value) 119,000
General factory overhead 37,000*
Salary of product-line manager 129,000
Insurance on inventories 9,000
Purchasing department 52,000†
Total fixed expenses 369,000
Net operating loss $ (82,000)
*Common costs allocated on the basis of machine-hours.
†Common costs allocated on the basis of sales dollars.
Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company’s total general factory overhead or total Purchasing Department expenses.
What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?
Discontinuing the bilge pump product line will tend to bring about financial disadvantage of $150,000.
Given,
Sales = $470,000
Shipping = $10,000
Total variable expenses = $183,000
Contribution margin = $287,000
Advertising = $23,000
Depreciation of equipment = $119,000
General factory overhead = $37,000
So here, the product line tend to serve as group of products which is thus been marketed under a brand.
To know if it will be a financial disadvantage if discontinuing the bilge pump product line, then we have to calculate the fixed cost.
Thus, the fixed cost savings can be calculated as - [$23,000 + $129,000 + $9,000] = $161,000
So, since the company is at a loss of - $250,000
The contribution margin and the fixed costs saved, which is less [$250,000) - $161,000]
= $89,000
Hence, discontinuing the bilge pump product will bring about financial disadvantage of $89,000.
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Why do many businesses incorporate in Delaware?
Federally-chartered banks must belong to the Federal Reserve System.
It is the smallest state in the Union.
The laws are favorable toward businesses.
The government does not require state-chartered banks to belong to the Federal Reserve System.
Many businesses incorporate in Delaware because:
C. The laws are favorable toward businesses.D. The government does not require state-chartered banks to belong to the Federal Reserve System.Why do Companies Incorporate in Delaware?In 2020, the state saw an additional 250,000 new businesses register in the state which pushes the total number of businesses to over 1.6 million. The state become recognized as a corporate paradise and is “home” to such famous firms as Ama-zon, Go-ogle, Tesla, Walmart, American Express, Di-sney etc.
Despite being the second smallest state, it also seem odd that Delaware became the business mecca it is today. Its has been incentivizing businesses to stay with lenient tax policies, reduced restrictions and simplified corporate laws. In conclusion, the key benefits to incorporating in Delaware are tax benefits, privacy, expediency, simplified structure and the corporation court.
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Mr. Sherman incurred $7,000 of employment-related business expenses. Which of the following statements is true? Multiple Choice If his employer reimbursed him for these expenses, Mr. Sherman must include the reimbursement in gross income. If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman is allowed a $4,000 above-the-line deduction. If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman is allowed a $4,000 itemized deduction. If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman has a $4,000 nondeductible expense.
For the given statement, the statement that is true is: “If his employer reimbursed him for these expenses, Mr. Sherman must include the reimbursement in gross income.” Hence, Option A is correct.
What is the meaning of the term “reimbursement”?When the subject receives compensation for travel-related costs like mileage, lodging, and meals, the term reimbursement is used. The term "compensation" refers to "payment" for things like time, discomfort, and trouble.
Reimbursement is the act of a business paying an employee, client, or other person back for money they spent out of pocket or for money they were overpaid.
Therefore, Option A is correct.
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a(n) ________ is a commercial organization with a permanent connection to the internet that sells temporary connections to retail subscribers.
An Internet service provider (ISP) is a commercial organization with a permanent connection to the Internet that sells temporary connections to retail subscribers. These connections can be provided by telephone lines, cable lines, or wireless connections.
What is Internet Service Provider?An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privately owned.
Internet services provided by ISPs can include Internet access, Internet transit, domain name registration, web hosting, Usenet service, and colocation. An ISP serves as the access point or gateway that provides its user access to everything available on the Internet.
The ISP include traditional options like copper wires to provide dial-up, DSL, typical asymmetric digital subscriber line (ADSL), cable modem or Integrated Services Digital Network (ISDN). It also provides higher-speed DSL (such as single-pair high-speed digital subscriber line) and Ethernet.
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Audrey is comparing a number of health insurance plans to offer her employees. Which management function is she MAINLY working on? (a) organizing
(b) staffing
(c) controlling
(d) implementing
As Audrey is comparing a number of health insurance plans to offer her employees, the management function that she is working on is staffing. The Option B is correct.
What is Staffing function about?Staffing refers to process of hiring eligible candidates in the organization or company for specific positions. In management, the staffing function means an operation of recruiting the employees by evaluating their skills, knowledge and then offering them specific job roles accordingly.
Through staffing, an organizations cam acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organization’s effectiveness.
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Raw material as an industrial material
Answer:
Raw materials are the input goods or inventory that a company needs to manufacture its products. Examples of raw materials include steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals.
Who usually conducts a SWOT Analysis for a business?
Team members
Managers
Lawyers
Financial institutions
Managers usually conduct a SWOT Analysis for a business. A SWOT analysis is a tool for documenting internal strengths (S) and weaknesses (W) in your business, as well as external opportunities (O) and threats (T).
SWOT analysis (or SWOT matrix) is a strategic making plans and strategic management technique used to assist a person or enterprise perceive Strengths, Weaknesses, opportunities, and Threats associated with business opposition or challenge making plans. It's far on occasion called situational evaluation or situational analysis.[1] additional acronyms the usage of the same components consist of TOWS and WOTS-UP. This method is designed to be used within the preliminary ranges of selection-making approaches and may be used as a device for evaluation of the strategic position of agencies of many types (for-earnings establishments, neighborhood and country-wide governments, NGOs, etc.).[4] it is intended to pick out the inner and external factors which are favorable and damaging to reaching the objectives of the task or undertaking.
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On June 15, 2021, Allen sold land held for investment to Stan for $65,000 and an installment note of $300,000 payable in five equal annual installments beginning on June 15, 2022, plus interest at 10%. Allen’s basis in the land is $255,500. What amount of gain is recognized in 2021 under the installment method?
Using the installment method means that the amount of gain that will be recognized in 2021 is $27,857.14.
How to use the installment method to find gain recognized?When a payment is to be made in installments, then the gain to be recognized in a year can be found by the installment method:
= Profit margin x Amount paid in 2021
The Profit margin can be found by the formula:
= ( Selling price of land - Seller's basis in the land) / Seller's basis in the land
= ( ( 300, 000 + 65, 000) - 255, 500) ) / 255, 500
= 109, 500 / 255, 500
= 42. 857 %
The gain to be recognized on the land sold by Allen to Stan is therefore:
= 42. 857 % x $ 65, 000
= $27,857.14
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The process of setting up the festival requires experience, expertise, and a constant flow of communication among various stakeholders in order to properly coordinate. This is ______ communication, which mcfarland failed at.
The process of setting up the festival requires experience, expertise, and a constant flow of communication among various stakeholders in order to properly coordinate. This is horizontal communication, which mcfarland failed at.
In an organisation, a stakeholder is a member of "groups without whose aid the corporation would cease to exist", as described inside the first utilization of the phrase in a 1963 internal memorandum on the Stanford research Institute. The principle changed into later evolved and championed through R. Edward Freeman in the Nineteen Eighties.
Someone or organization of those who very own a share in a business. someone such as an employee, customer, or citizen who's involved with an enterprise, society, and many others. and consequently has obligations closer to it and an hobby in its fulfillment
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Assuming interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized? A. The amount capitalized should be the average between the actual and avoidable interest amounts. B. The amount capitalized should be the higher of the actual or avoidable interest amounts. C. The amount capitalized should always be the actual interest amount. D. The amount capitalized should be the lower of the actual or avoidable interest amounts. E. The amount capitalized should always be the avoidable interest amount.
Interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized the amount capitalized should be the higher of the actual or avoidable interest amounts.
Interest rate may be each a legal responsibility and an asset. Prepaid hobby is recorded as a cutting-edge asset whilst hobby that hasn't been paid but is a cutting-edge legal responsibility. Both those line objects may be discovered at the stability sheet, which may be generated out of your accounting software.
To capitalize is to document a value or rate at the stability sheet for the functions of delaying complete reputation of the rate. In general, capitalizing costs is useful as businesses obtaining new belongings with long-time period lifespans can amortize or depreciate the costs. This manner is referred to as capitalization.
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Technician A says that a heat gun may be used to remove emblems.
Technician B says that a mixing board is used for mixing paint.
Who is right?
Answer:
The correct answer is Technician A says that a heat gun may be used to remove emblems.
Explanation:
A heat gun can easily remove emblems but a mixing board is not ever used for mixing paint. Its used to play music on a music desk.
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According to the reading, what might cause customers to come to a restaurant even if its prices are somewhat higher than competitors?.
According to the reading, Fresh ingredients cause customers to come to a restaurant even if its prices are somewhat higher than competitors
What is competition?Different economic enterprises engage in competition to gain items that are restricted by adjusting the marketing mix's four components: pricing, product, promotion, and site. According to traditional economic theory, competition drives businesses to create new goods, services, and technologies, giving customers more options and higher-quality goods. Prices for products are often cheaper the more options there are on the market, compared to what they would be if there was little or no competition (monopoly) (oligopoly).A multitude of factors, including those on the firm/seller side, such as the number of firms, entry hurdles, information, and the availability/accessibility of resources, affect how competitive a market is. With each customer having a willingness to pay, the quantity of customers in the market also influences competitiveness and influences the market's overall demand for the product.To learn more about competition, refer to
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Answer: b) Fresh ingredients
Explanation:
"Customer dissatisfaction, employee turnover, cost overruns, and manufacturing defects are some of the issues managers address through
a. control
b. conceptualizing
c. complaints
d. a moral compass
e. course correction"
Some of the problems managers try to control include customer unhappiness, workforce churn, cost overruns, and production flaws. As a result, choice (A) is the best way to respond.
What is employee turnover?The total number of employees who leave a company over a specific time period is referred to as employee turnover. Both employees who leave on their own accord and those who are dismissed or laid off are counted as part of involuntary turnover.
Attrition differs from turnover. Force reductions and dismissals are not taken into account when assessing attrition.
Employees who leave voluntarily their employment frequently do so in search of better pay and benefits, professional advancement, a better work-life balance, or to get away from a toxic or incompetent manager.
Hence, option (A) is accurate.
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What is value and how is it determined and measured? In your opinion, does business generally determine and measure value appropriately? In a free market, what happens when value is not properly assessed by a business and its leaders? Give a historical example and your thoughts about how and why a disconnect occurred. Cite any sources used to support your answer.
Value is known as the monetary or material, or the assessed worth of an asset, good, or service.
"Value" is attached to the myriad of concepts which includes shareholder value or the value of a firm, fair value, and market value. Some of the terms which are well-known business jargon, and some are the formal terms for accounting and auditing standards of reporting to the Securities and Exchange Commission (SEC)
The process of the calculating as well as assigning a value to a company or an asset is a process called valuation.
Value in the real estate refers to worth of any property, whether it is to be a home or land as determined by the amount which the seller and buyer agree upon. Value in the real estate is only determined when the buyer and seller agree upon a price.
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Salaries for physical therapists rise more than salaries for athletic trainers. What will happen in the labor market for athletic trainers?.
The labor supply will decrease, leading to higher wages and fewer hours for trainers to hire.
When the labor supply curve rises, the substitution effect dominates the income effect. His other three questions concern factors leading to shifts in the labor supply curve. In all three cases the situation implies that the labor supply curve shifts to the left. For example, when the real wage rate rises, the opportunity cost of leisure increases. This tends to encourage workers to provide more labor (the "substitution effect"). But even if the real wage rate rises, workers still earn more for a given number of hours.
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Task: Sales and Marketing Activities of a Company
Select a publicly held company that is well-known for marketing its products. Search its
website and procure a few years' sales reports and annual reports, including sales and
revenue graphs. You could choose any Fast Moving Consumer Goods (FMCG), mobile, or
automobile company-or a company dealing in anything else that interests you. Analyze the
company's sales data and revenue figures, and write an essay summarizing the company's
performance over the last few years.
Type your response here:
After analyzing the company's sales data and revenue figures, it is found out that it has good sales in the Fast Moving Consumer Goods (FMCG).
What are Fast Moving Consumer Goods?
Products that sell quickly and at a low price are referred to as fast-moving consumer goods (FMCG), sometimes known as consumer packaged goods (CPG). Examples include non-durable household items including packaged food, drinks, toiletries, candy, cosmetics, over-the-counter medications, dry goods, and other consumables. Fast-moving consumer goods have a high inventory turnover in comparison to specialty items, which have smaller sales and greater carrying costs. Especially in hypermarkets, big box stores, and warehouse club stores, many retailers solely stock FMCGs. Fast moving goods are also stocked at small convenience stores, where they take up more of the limited shelf space. In rural locations, customers often buy things from adjacent towns and villages.
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Mr. D is the manager of a local walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day walgreens receives shipments from pepsi, evian, hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is mr. D using at walgreens to reduce his costs?.
Mr. D using just in time inventory system to reducing travel expenses and waiting periods.
What is a time inventory?The time it takes to generate and fulfill a client order is known as the inventory cycle time, and it is typically expressed in days.It basically gauges how quickly a business can finish the entire manufacturing or assembly process, transforming raw materials or components into a marketable product.In inventory management, lead time refers to the period of time between placing and receiving an order to replenish inventory.The quantity of stock a firm must hold at any given time is influenced by lead time.To learn more about Time inventory refer,
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Which of the following is true about the theory of absolute advantage? The theory accepts the mercantilist idea that international trade is a zero-sum game . The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates. The theory measures a nation's wealth by how much gold and silver it has on reserve. The theory approves the objective of national governments to acquire wealth through restrictive trade policies.
The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates.
Absolute advantage is a term used in economics to describe a party's better capacity for output. It specifically means the capacity to create a specific commodity or service for less money (i.e., more effectively) than a rival party.
The Scottish philosopher Adam Smith, who is regarded as the founder of modern economics, originally presented the idea of absolute advantage in the context of international trade in 1776. He made the case that in order for nations to become wealthy, they should specialize in producing the goods and services in which they have a clear advantage and engage in free trade with other nations to market their goods. This was the central thesis of his monumental work, An Inquiry into the Nature and Causes of the Wealth of Nations.
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Which of the following is true about the theory of absolute advantage? The theory accepts the mercantilist idea that international trade is a zero-sum game . The theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates. The theory measures a nation's wealth by how much gold and silver it has on reserve. The theory approves the objective of national governments to acquire wealth through restrictive trade policies.
From the following, the one which is true about the theory of absolute advantage is that, the theory emphasizes that nations should open their doors to trade so that people can obtain more goods at cheaper rates.
Absolute advantage is considered to be a term which is used in Economics in order to describe a party's better capacity for the output. So, thus it specifically means the capacity in order to create a specific commodity for less money than a rival party.
Adam Smith is said to originally present the idea of absolute advantage in the context of international trade in 1776. He says that, for nations to become wealthy, they should specialize in producing goods and services in which they tend to have a clear advantage.
Hence, option B is correct.
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What qualities or characteristics might lead to the emergence of an innovation desert? Is it always a geographical definition, or could it be defined in other ways?
No, it is not always a geographical definition. It could be on the basis of need of a community to meet the global requirement. Specific populations fall into identical “innovation deserts,” where the population will need to be rooted in entrepreneurialism and technology in order to be at par with the global culture
What is the import of an innovation deserts?An innovation desert enables the development of a disadvantaged community to be at par with the rest of the world through an inclusive innovation economy. The innovation will eradicate “innovation deserts” in a disadvantaged communities, which are most especially the equivalent of food deserts where individuals lack access to fundamental resources to thrive.
Therefore, the correct answer is as given above
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If a working environment becomes toxic the productivity of all workers will decline. What will happen to the average cost of production as a result?.
Average cost increases to the average cost of production as a result.
Fee, in not unusual utilization, is the monetary value of products and offerings that producers and purchasers purchase. In a simple monetary feel, value is the measure of the opportunity possibilities foregone in the desire of one properly or pastime over others.
Value is the cost of money that an agency needed to spend to supply its goods or services. Its miles are calculated as the quantity that an employer spends so that it will produce a certain unit of a product. In easy words – it's miles the cash that an agency spends on things together with exertions, services, raw substances, and greater.
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Assume that today is December 31, 2019, and that the following information applies to Abner Airlines :
After-tax operating income [EBIT(1-T)] for 2020 is expected to be $500 million .
The depreciation expense for 2020 is expected to be $150 million.
The capital expenditures for 2020 are expected to be $375 million
No change is expected in net operating working capital.
The free cash flow is expected to grow at a constant rate of 4% per year
The required return on equity is 15 %
The WACC is 11%
The firm has $206 million of non- operating assets
The market value of the company's debt is $2.329 billion
300 million shares of stock are outstanding
Using the corporate valuation model approach, what should be the company's stock price today? Do not round intermediate calculationsRound your answer the nearest cent
The company's stock price today should be $15.54 per share.
Step 1: Calculation of free cash flowFree Cash Flow (FCF):
= After-tax operating income + Depreciation expenses - Capital expenditure
= $700 + $150 - $375
= $475 million
Calculation of Value of operations (Vo)Vo = FCF / (WACC - FCF growth rate)
Vo = $475 / (11% - 4%)
Vo = $6,785.71 million
Calculation of the Firm valueFirm value:
= Vo + Non-operating assets
= $6,785.71 + $206
= $6,991.71 million
Calculation of value of equityValue of equity:
= Firm value - Debt
= $6,991.71 - $2,329
= $4,662.71 million
Calculation of stock price per share todayStock price per share:
= Value of equity / Number of shares outstanding
= $4,662.71 / 300
= 15.5423666667
= $15.54 per share
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If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the m1 money multiplier is.
If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the m1 money multiplier is 0.73.
Information disclosed:
Required reserve ratio (rr) equals 10%, or 0.1.
Circulating money (C) equals $1,200 billion
Deposits (D) = $1,600 billion for checks.
Total excess reserves (ER) equals $2,500 billion.
The M1 money multiplier's formula is
M1= (1+C/D)/ (rr+ER/D+C/D)
where rr is the required reserve ratio, C is the amount of currency in circulation, D are deposits, ER are excess reserves, and
Replace the specified values in the formula above.
M1 = (1+1200/1600) / (0.1+2500/1600+1200/1600)
M1 = 0.7253886
M1 ≈ 0.73.
0.73 is the M1 money multiplier.
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the factors necessary to compute depreciation include (cost/selling price/market value) , salvage value and useful life.
When computing depreciation, the factors that are necessary include:
Cost Salvage value Useful life How can you compute depreciation?Depreciation refers to the process by which fixed assets lose value as they progress in their useful life. For instance, if a company buys a truck in Year 1, the truck will keep losing value for as long as the company uses it. This is simply because there will be wear and tear on the truck from being used for so long by the company.
Depreciation helps companies to account for this loss in value, and then charge it as an expense which allows the company to pay less taxes.
Depreciation can be calculated using different methods, depending on the account policy that the company follows, or the legal practices in the country they are in.
For the most part however, a company will need three factors to find annual depreciation which are the cost of the fixed asset, the useful life, and the salvage value.
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Answer:cost
Explanation:
cost
Doeren Inc. began constructing a building for its use on January 1, 2022. All costs associated with the construction are being debited to an account called “Construction-in-Progress.” The construction will take approximately 24 months. Weighted-average expenditures for 2022 have already been determined to be $5,000,000.
The company has one specific, as well as two non-specific loan borrowings. Details are as follows:
Specific Loan Borrowing: $4,000,000 loan at 9% taken out 1/1/2022 and due in 2025.
Non-specific Borrowings:
o Note #1: $2,000,000 at 10%. This loan was outstanding for all of 2022 and is due in 2023.
o Note #2: $500,000 at 12%. This loan was outstanding for all of 2022 and is due in 2024.
A) What portion of the interest on all of its loans should be capitalized in 2022?
B) If the company has already accrued and paid the 2022 interest costs on these three loans by debiting “Interest Expense” and crediting “Cash”, what adjusting journal entry should be made on 12/31/22 to capitalize interest in 2022?
Doren inc. has a loan taken to construct a building which directly increases the liabilities of the enterprise.
A loan is an agreement under which the lender allows another party to use the funds in exchange for interest payments and repayment of the funds at the end of the loan agreement. Credit is a necessary part of the financial system as it provides liquidity for businesses and individuals.
A demand loan is a loan that the lender can cancel. When a loan is repaid according to a fixed schedule over a period of time, it is called an installment loan. A line of credit that can be withdrawn and repaid multiple times is called a line of credit. A secured loan contains collateral that the lender can seize if the borrower fails to repay the loan.
Unsecured loans are not tied to any collateral and therefore carry a higher risk of loss for the lender. Because the risk is high, interest rates can be high.
Thus, it is money or other tangible goods that are given to another party in return for future repayment of the value of the loan and interest and other financing costs.
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2. Explain and justify the concept of Corporate Social Responsibility.
Answer:
Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enchance rather than degrade society.
Patagonia has been very successful in getting its customers to purchase fewer products from patagonia. True / False.
It is obvious that Patagonia has had great success in persuading people to buy less of its products.
What is business strategy?An organization's positioning, attainment of its short- and long-term objectives, and long-term growth are all outlined in a business strategy. It uses other crucial business resources, such as the organization's mission, vision, and values, to help it choose its future course and accomplish its goals.
Other crucial organizational strategies are supported by a commercial strategy.
A sound business plan also makes sure that an organization, whether it is a startup, a small company, or a large corporation, maintains a comparative benefit in its industry.
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Form utility is created by making a product available at a location where customers wish to purchase it.
True
False
Form utility is created by making a product available at a location where customers wish to purchase it. This statement is True.
What is a Product?A product is anything that may be provided to a market to satiate the need or wants of a client. It can be an object, system, or service that is made accessible for consumer usage as a result of consumer demand. Products are sometimes referred to as merchandise in the retail sector, and they are purchased as raw materials in the manufacturing sector before being sold as finished items. A form of product that is also considered a service.
Core Goods is not tangible item; instead, it consists of advantages that help consumers solve problems. Products are designed with the consumer in mind. For example, Coca-Cola employs chemicals to create Coke Drink, Revlon blends chemicals to create lipstick, and Lululemon specializes in yoga wear. Each product is founded here on its primary advantages.
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Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 48% per year- during Years 4 and 5, but after Year 5, growth should be a constant 7% per year. If the required return on Computech is 12%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.
The value of stock today, based on the required return and the dividends amounts, is $41.64
How to find the value of stock?First, find the terminal value after year 5. To find this, you first need to find the value of dividends in year 4:
= Year 3 dividend x ( 1 + growth rate )
= 1. 75 x ( 1 + 48%)
= 1. 75 x 1. 48
= $ 2. 59
Then find dividends at year 5:
= 2. 59 x (1 + 48% )
= $ 3.8332
The terminal value would then be:
= (3.8332 x 1.07) / ( 12% - 7%)
= $82.03048
The current value of the stock would then be the present value of the dividends and the terminal value:
= 1.75 / 1.17³ + 2. 59 / 1.17⁴ + 3.8332 / 1.17⁵ + 82.03048 / 1.17⁵
= $41.64
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