Answer:
E. $78
Explanation:
The computation of the net present value is shown below:
Net present value is
= Initial investment + year cash inflows ÷ (1 + discount rate)^number of years + year cash inflows ÷ (1 + discount rate)^number of years
= -$150 + $175 ÷ 1.15 + $100 ÷ 1.15^2
= $77.78
= $78
Hence, the correct option is E. $78
The total debits in the After-Closing Trial Balance will equal:______
a. $25,375.
b. $29,125.
c. $40,875.
d. $18,125.
Complete Question:
Shown below is a trial balance for Novelty Toys, Inc., on December 31,after adjusting entries:
Novelty Toys, Inc.
Trial Balance December 31
Cash $7,750
Accounts Receivable $6,375
Office Equipment $11,250
Accumulated Depreciation $3,000
Accounts Payable $3,875
Capital Stock $11,250
Retained Earnings $0
Dividends $3,750
Fees Earned $22,750
Salaries Expense $8,000
Advertising Expense $1,625
Depreciation Expense $2,125
$40,875 $40,875
The total debits in the After-Closing Trial Balance will equal:
Select one:
a. $25,375.
b. $29,125.
c. $40,875.
d. $18,125.
Answer:
$25,375
Explanation:
The After-Closing Trial Balance is prepared once the closing entries are posted. This results in closing of expense and income accounts for the year and the resulting balance taken forward to retained earnings. This means that After-Closing Trial Balance would contain only permanent general accounts which are balance sheet items. In the given scenario, the balance sheet debit balances are as under:
Cash $7,750
Accounts Receivable $6,375
Office Equipment $11,250
Total Debit Balance $25,375
Hence the option A is correct.
"John is a registered representative who has discretionary options accounts for 25 of his largest customers. John likes the news coming out of ABCD Corporation and decides to buy ABCD calls for some of his clients. He buys 30,000 ABCD call contracts each for 10 out of the 25 discretionary accounts that he manages. The position limit for ABCD is 250,000 contracts on each side of the market. Which statement is TRUE?"
Answer: This is a violation of position limits
Explanation:
When checking to see if there has been a violation of control limits, all the accounts managed by a single entity or all accounts under common control will be added up instead of being evaluated on an individual basis.
John manages 25 accounts out of which he bought calls for 10. He bought 30,000 for each of the 10 which would mean that he bought 300,000 call contracts.
This exceeds the 250,000 contract limit so is a violation of position limits.
A company had net income of $930,000 in 2016. Depreciation expense is $104,000. During the year, Accounts Receivable and Inventory increased $60,000 and $160,000, respectively. Prepaid Expenses and Accounts Payable decreased $8,000 and $16,000, respectively. There was also a loss on the sale of equipment of $12,000. How much cash was provided by operating activities in 2016
Answer:Cash provided by operating activities= $818,000
Explanation:
Cash Flow from operating activities is the amount of cash generated from the inflows and outflows of the business activities in a company.
Cash Flow from operating activities in 2016
Net income $930,000
Add
Depreciation $104,000
Loss on sale of equipment $ 12,000
Prepaid expenses decrease $ 8,000
Deduct
Accounts receivable increase -$ 60,000
Inventory increase -$160,000
Accounts payable decrease -$16,000
Cash provided by operating activities $818,000
Title 10, United States Code (USC), Section 2337 provides requirements and responsibilities for the product support manager (PSM) that include:
A. Conducting appropriate cost analysis to validate the product support strategy.
B. Using predictive analysis and modeling tools that can improve material availability and reliability.
C. Developing and implementing a comprehensive product support strategy for the weapon system.
D. Reviewing all business-case analyses from product support integrators and product support providers every ten years.
How might the future economic concerns of other countries differ from those of the United States?
Answer:
The future economic concerns of other countries will differ from those of the United States, mainly according to the degree of economic development of each nation. Thus, for example, countries like Germany or Canada, which have an economic development similar to that of the United States, will have economic and socioeconomic concerns quite similar to the United States (rational use of natural resources, redistribution of income, efficient allocation of public resources, etc.).
On the other hand, less developed nations such as those of Africa, Haiti or Cuba, for example, will have different concerns, such as guaranteeing access to water, food and sanitation for all their inhabitants, or generating foreign investments that provide jobs for their residents.
Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Wesernaunt for each of these expenditures?
1. Salaries for the repair technicians, $156,000
2. Remodeling of the executive offices, $83,100
3. Annual maintenance costs related to its machinery, $79,400
4. Improvement of the production line resulting in an increase in productivity, $38,500
5. Addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $44,100
Answer and Explanation:
The classification is as follows
1. Since it is a salary for the repair technicians so it would be an expense that is incurred
2. The remodeling should be capitalized and depreciated over their useful life of an asset
3, Since there is an annual maintenance cost, so it would be an expense that is incurred
4. The improvement of the line of production should be capitalized and depreciated over their useful life of an asset
5. Addition of a sprinkler system should be capitalized and depreciated over their useful life of an asset
The unauthorized use of intellectual property is called a. royalties. b. international franchising. c. foreign licensing. d. counterfeit activity.
Answer:
Option D: Counterfeit activity
Explanation:
Counterfeiting activities refer to the wide range of activities that violate the intellectual property rights of individuals. They range from illegal product duplication to piracy and illegal production and sale of a patented product.
Counterfeiting does not only harm the Intellectual property owner, it also affects the nation. This is because counterfeiting activities discourage creators from investing time and other resources to create novel products for the market that can boost the economy.
The other options are not correct. They mean the following:
Royalties refer to the sum of money that is paid to patent holders over the use f their products.
International franchising refers to the process of given permission to individuals around the world to operate and do business under your brand name, under strict adherence to certain codes of conduct
foreign licensing refers to is the agreement between two companies to sell each other's products outside their home country.
Which of the following is always true:
A) Diluted weighted shares is always less than or equal to basic weighted average shares
B) Diluted weighted shares is always greater than or equal to basic weighted average shares
C) Shares outstanding on the period end date is the value used to calculate Basic EPS
D) Shares outstanding on the period end date is the value used to calculate Diluted EPS
Answer:
B) Diluted weighted shares is always greater than or equal to basic weighted average shares
Explanation:
Basic Earnings per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks
Diluted Earnings per Share includes the Potential voting rights in the calculation of Weighted Average Number of Common Stocks and thus its weighted shares is always greater than or equal to basic weighted average shares.
Earnings per Share used Weighted Shares Outstanding at Period End instead of just Outstanding Shares at Period End.
The following information applies to the questions displayed belowWarnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Date Activities Units Sold at Cost Units Sold at Retal Mar. 1 Beginning 130 units $51.60 per unit 2 inventory Mar. 5 Purchase 240 units $56.60 per unit Mar. 9 Sales 290 units $86.60 per unit Mar. 18 Purchase 100 units $61.60 per unitMar. 25 Purchase 180 units $63.60 per unitMar. 29 Sales 160 units a $96.60 per unit Totals 650 units 450 units. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase.Gross Margin FIFO LIFO Avg. Cost Spec. IDSales Less: Cost of goods sold 25,220.00 26,340.00 25,679.60 26,070.00Gross profit LIFO
Answer:
Gross profit under LIFO = $40,570 - $26,340 = $14,230
Gross profit under FIFO = $40,570 - $24,520 = $16,050
Gross profit under average cost = $40,570 - $26,238.46 = $14,331.54
Gross profit under specific ID = $40,570 - $26,070 = $14,500
Explanation:
I divided the purchases and sales:
Mar. 1 Beginning 130 units $51.60 per unit
Mar. 5 Purchase 240 units $56.60 per unit
Mar. 18 Purchase 100 units $61.60 per unit
Mar. 25 Purchase 180 units $63.60 per unit
Totals 650 units, $37,900
Mar. 9 Sales 290 units $86.60 per unit
Mar. 29 Sales 160 units a $96.60 per unit
Totals 450 units. $40,570
COGS under LIFO:
(240 x $56.60) + (50 x $51.60) = $16,164
160 x $63.60 = $10,176
total = $26,340
COGS under FIFO:
(160 x $56.60) + (130 x $51.60) = $15,764
(110 x $56.60) + (50 x $61.60) = $8,756
total = $24,520
COGS under average cost:
($37,900 / 650) x (290 + 160) = $26,238.46
COGS under specific ID:
(80 x $51.60 ) + (210 x $56.60) = $16,014
(60 x $61.60) + (100 x $63.60) = $10,056
total = $26,070
Which costs of inflation could the government take action to reduce without reducing inflation?
a. shoeleather cost
b. unintended changes in tax liablities
c. menu costs
d. none of the above is correct
Answer:
The correct answer will be Option b (unintended changes in tax liabilities).
Explanation:
Government should minimize the inevitable increases in tax liabilities, besides obvious reasons adjusted for inflation, earnings will increase, but mostly individuals will indeed be healthier and more productive income level and might have to pay more in taxes. The objective is to reduce this, thereby directly increasing the chances of inflation or unemployment.Some other alternatives offered are not in relation to the condition in question. So Choice b has been the appropriate one.
During the year, we made a payment of long-term notes payable of $45,000 and borrowed $20,000 on a long-term note payable. Which of the following is correct for our statement of cash flows?
A. Net cash used for financing activities is ($25,000).
B. Net cash provided by investing activities is $25,000.
C. Net cash provided by financing activities is $25,000.
D. Net cash used for financing activities is ($45,000).
Answer:
A. Net cash used for financing activities is ($25,000)
Explanation:
Borrowing and repayment of note payable are a financing activity recognized under Cash flow
Borrowed note payable $20,000 (Inflow)
Less : Repayment of Note payable ($45,000) (outflow)
Net Inflow of cash ($25,000)
How long should I allow for my CPT application to be processed before contacting the Deptartment of International Graduate Services?
a. 10 business days
b. 3 business days
c. 24 hours
Answer: a. 10 business days
Explanation:
Curricular Practical Training (CPT) refers to a job that will be beneficial to your program of study such as alternate work/study, internship and cooperative education.
When applying for the CPT, one must keep in mind that in general it takes 5 - 10 business days. However, during Peak application times such as April, September and January, it is recommended that you wait the entire 10 business days.
n an open economy, why is the supply curve for dollars in the foreign-currency exchange market vertical?
Answer:
In an open economy, the supply curve for dollars in the foreing-currency exhange market is vertical, because the supply does not depend on the exchange currency rate.
The supply of dollars in an open economy depends on the interest rate, which is determined by the difference between imports and exports (which is the same as the difference between purchases and sales of foreign capital).
Which of the following is a true statement?
a) A fiduciary entity is a legal entity that takes possession of property for the benefit of a person.
b) An estate is a fiduciary entity that comes into existence upon a person's death to transfer the decedent's real and personal property.
c) A trust is also a fiduciary entity whose purpose is to hold and administer the corpus for other persons (beneficiaries).
d) An estate exists only temporarily, but a trust may have a prolonged or even indefinite existence.
e) All of the choices are true.
Answer:
e) All of the choices are true.
Explanation:
The definition of a fiduciary are;
a) A fiduciary entity is a legal entity that takes possession of property for the benefit of a person.
b) An estate is a fiduciary entity that comes into existence upon a person's death to transfer the decedent's real and personal property.
c) A trust is also a fiduciary entity whose purpose is to hold and administer the corpus for other persons (beneficiaries).
d) An estate exists only temporarily, but a trust may have a prolonged or even indefinite existence.
Generally, a fiduciary is saddled with the responsibility of providing duties in good faith, ethics and trust.
As chief engineer for a small manufacturing firm, you are considering whether to invest $40,000 in a new piece of equipment that will save $3000 annually in operating costs. If the equipment has an expected lifetime of 20 years and a salvage value of $12,000, is this an attractive investment at an interest rate of 6%? Why or why not?
Answer:
NPV = ($1,848.57)
Explanation:
The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 40,000
Salvage value = 12,000
Savings in operating cost = 3,000
PV of annual savings : 3000× (1- 1.06^-20)/0.06 =34,409.76
PV of salvage value = 12,000 × 1.06^(-20)=3,741.65
Total PV of cash inflow 34,409.76 + 3,741.65= 38,151.42
NPV = 38,151.42038 - 40,000 = $(1,848.57)
The project should not be implemented because it would delete the shareholders wealth by $1,848.57
NPV = ($1,848.57)
The Benesch Company expects sales in 2018 of 205,000 units of serving trays. Benesch's beginning inventory for 2018 is 18,000 trays, and its target ending inventory is 27,000 trays. Compute the number of trays budgeted for production in 2018.
Answer:
214,000 trays
Explanation:
Budgeted sales in unit. 205,000
Add: targeted ending inventory 27,000
Total requirements. 232,000
Deduct: beginning inventory (18,000)
Budgeted units to be prod. 214,000
A company issues 5%, 12-year bonds with a face amount of $70,000 for $64,070 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Answer:
Date Particular Debit Credit
Jan 1, 2021 Cash $64,700
Discount on bond payable $5,930
Bond payable $70,000
Jun 30,2021 Interest expense $3,882
Discount on bonds payable $2,132
Cash $1,750
Workings:
Semi annual interest payment = 70,000 x 5% x 6/12
= $1,750
Interest expense on June 30, 2021 = Carrying value of bonds x Market interest rate
= 64,700 x 6%
= $3,882
Discount on bonds payable amortized on June 30, 2021 = Interest expense - Interest payment
= 3,882 - 1,750
= $2,132
Match the following statements to the appropriate terms.
Price-earnings ratio select the appropriate term
Return on assets select the appropriate term
Accounts receivable turnover select the appropriate term
Earnings per share select the appropriate term
Payout ratio select the appropriate term
Working capital select the appropriate term
Current ratio select the appropriate term
Debt to assets ratio select the appropriate term
Free cash flow select the appropriate term Inventory turnover select the appropriate term
Answer:
Matching Statements to Appropriate Terms:
Price-earnings ratio = Profitability Ratio
Return on Assets = Profitability Ratio
Accounts Receivable Turnover = Liquidity Ratio
Earnings per share = Profitability Ratio
Payout ratio = Profitability Ratio
Working capital = Liquidity Ratio
Current ratio = Liquidity Ratio
Debt to Assets = Solvency Ratio
Free Cash Flow = Solvency Ratio
Explanation:
Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.
Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets. They include the working capital, the current ratio, and the acid-test ratio.
Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.
What is another term for accountability?
Answer:
responsibility
liability
answer-ability
reporting
obedience
Explanation:
Answer:
Responsibility
Explanation:
plato
Gelb Company currently manufactures 42,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year, and allocated fixed costs are $84,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 42,000 units and buying 42,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?
Answer:
It is more convenient to buy the component.
Explanation:
Giving the following information:
Production= 42,000 units
Variable costs are $6.25 per unit, fixed costs related to making this component are $87,000 per year
The company is considering buying this component from a supplier for $3.70 per unit.
We will take into account only the incremental costs.
Make in-house:
Total cost= 87,000 + 6.25*42,000
Total cost= $349,500
Buy:
Total cost= 3.7*42,000= $155,400
It is more convenient to buy the component.
The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2013.Cost of real estate acquired for a new manufacturing plant 365000The land is appraised for 262,800 and the building for 102,200Real estate taxes paid by the purchaser 20,000Cost of removing barn 8,500Architect fees for updating building 6750Attorneys fees for closing sale 12500Grading land 3500paving parking lot 7000planting trees and shrubs 9250cost of repairs to building due to storm 1300lights placed on driveway 4750fee to real estate broker 25001: Determine the cost of the land, the building and the improvements (Round to the nearest dollar)2: Prepare journal entries on December 31, 2013 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. 3: Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).
Answer:
1) there is no fixed formula for allocating land costs, specially since you should try to allocate more costs to the building or other depreciable assets than to land, but the IRS is not allowing this anymore. In some places, it is not accepting the old 80/20 rule or even a 60/40 rule for allocating costs, instead it is requiring costs to be allocated based on a professional appraisal.
cost of land:
appraisal value = $262,800real estate taxes = ($262,800 / $365,000) x $20,000 = $14,400fee to real estate broker = ($262,800 / $365,000) x $2,500 = $1,800cost of removing barn = $8,500attorney's fees for closing sale = ($262,800 / $365,000) x $12,500 = $9,000grading land = $3,500total cost of land = $300,000cost of building:
appraisal value = $102,200real estate taxes = ($102,200 / $365,000) x $20,000 = $5,600fee to real estate broker = $700architect's fees for updating building = $6,750attorney's fees for closing sale = $3,500cost of repairs to building due to storm = $1,300total cost of building = $120,050cost of land improvements:
paving parking lot = $7,000planting trees and shrubs = $9,250lights placed on driveway = $4,750total cost of land improvements = $21,0002) if we assume MACRS 20 year property (double declining), half year convention for depreciating the building, the depreciation for 2013 would be 3.75% x $120,050 = $4,501.86 ≈ $4,502
December 31, 2013, depreciation expense
Dr Depreciation expense 4,502
Cr Accumulated depreciation: building 4,502
3) land improvements depreciation expense for year using straight line method = $21,000 / 5 = $4,200 x 2/12 = $700
December 31, 2013, depreciation expense
Dr Depreciation expense 700
Cr Accumulated depreciation: land improvements 700
Globus Autos sells a single product. 8,300 units were sold resulting in $84,000 of sales revenue, $24,000 of variable costs, and $18,000 of fixed costs. If Globus reduces the selling price by $1.10 per unit, the new margin of safety is: (Round any intermedary calculations to the nearest cent.) A. 2,872 units B. 8,300 units C. 5,364 units D. 5,428 units
Answer:
Margin of safety= 5,364 units
Explanation:
First, we need to calculate the break-even point in units:
Selling price= 84,000/8,300= $10.12
Unitary variable cost= $2.89
New selling price= 10.12 - 1.1= $9.02
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 18,000 / (9.02 - 2.89)
Break-even point in units= 2,936 units
Now, the margin of safety:
Margin of safety= (current sales level - break-even point)
Margin of safety= 8,300 - 2,936
Margin of safety= 5,364 units
g A company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period. Group of answer choices
Answer:
Allocated MOH= $128,000
Explanation:
Giving the following information:
Predetermined overhead rate= 160% of direct material cost.
Actual direct material= $80,000
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.6*80,000
Allocated MOH= $128,000
During 2018, ABC had the following cash flows: received cash of $5,000 billed to a customer in 2017; earned $20,000 of net income; paid interest of $6,000 on a corporate bond issued; paid dividends of $8,000 to its stockholders; borrowed $40,000 from a local bank; purchased its own shares of common stock for $10,000. What is ABC's net cash flows from financing activities for 2018?
Answer:
Cash flow from financing Activities $22,000
Explanation:
Financial activities Cash flow
Particulars Amount
Dividends Paid -$8,000
Borrowing from Bank $40,000
Stock Repurchased -$10,000
Cash flow from financing Activities $22,000
For each of the following fiscal policy proposals, determine whether the primary focus is on aggregate demand, aggregate supply, or both.
a. $1,000 per person tax reduction
b. a 5% reduction in all tax rates
c. Pell Grants, which are government subsidies for college education
d. government-sponsored prizes for new scientific discoveries
e. an increase in unemployment compensation
1. (i) both; (ii) supply-side; (iii) supply-side; (iv) both; (v) demand-side
2. (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both
3. (i) demand-side; (ii) both; (iii) both; (iv) supply-side; (v) demand-side
4. (i) supply-side; (ii) demand-side; (iii) demand-side; (iv) both; (v) both
5. (i) supply-side; (ii) supply-side; (iii) demand-side; (iv) both; (v) both
Answer:
2. (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both
Explanation:
a. $1,000 per person tax reduction ⇒ focus on aggregate demand (more money for consumers to spend)
b. a 5% reduction in all tax rates ⇒ focus on both aggregate demand and supply (more money for consumers and suppliers)
c. Pell Grants, which are government subsidies for college education ⇒ focus on aggregate supply (more money for suppliers of college education)
d. government-sponsored prizes for new scientific discoveries ⇒ focus on aggregate supply (more money for suppliers of new scientific discoveries)
e. an increase in unemployment compensation ⇒ focus on both aggregate demand and supply (more money for consumers resulting in higher prices and lower output)
Mark Stan elects to receive his retirement benefit over 20 years at the rate of 2,000 per month beginning one month from now. The monthly benefit increases by 5% each year. At a nominal interest rate of 6% convertible monthly, calculate the present value of the retirement benefit.
Answer:
$419,253
Explanation:
we must find the present value of a growing annuity:
present value = [monthly payment / (i - g)] x [1 - [(1 + g)ⁿ x (1 + i)⁻ⁿ]
monthly payment = $2,000 i = (1 + 0.06/12)¹² - 1 = 0.061678 / 12 = 0.005139833 g = 5% / 12 = 0.004166667 n = 20 x 12 = 240present value = [$2,000 / (0.00514 - 0.00416)] x [1 - [(1 + 0.00416)²⁴⁰ x (1 + 0.00514)⁻²⁴⁰] = $2,040,816 x [1 - (2.7083 x 0.293) = $2,040,816 x (1 - 0.794566) = $419,252.99 = $419,253
A deferred tax valuation allowance account is used to recognize a reduction in the potential benefit due to:
Answer: deferred tax
Explanation: A deferred tax valuation allowance account is used to recognize a reduction in a deferred tax asset which represents the increase in taxes saved in future years as a result of a temporary deductible differences and carryforwards. This usually can result in a change in taxes payable or refundable in future periods and as a consequence, a deferred tax valuation allowance account is created if there is a greater probability that the business will not realize some portion of the asset.
g A farmer is preparing to plant corn and expects to deliver his crop to the market in 1 year. The yield on US t-bills is 3.7% and it costs 0.2% to store corn for 1 year. If the spot price of corn is $3.07/bushel today, what price can the farmer expect to lock in with a 1 year futures contract
Answer:
$3.19208 per bushel
Explanation:
As we know that:
Future Price = Spot rate * e ^[(Rf + Storage Cost)*T]
Here
Future price is the price that the farmer wants to lock with a 1 year future contract
Spot rate is the price of corn today which is $3.07 per bushel
Rf is the risk free rate of return which is 3.7%
The incremental storage cost is 0.2% to store a single bushel of corn
T is the number of years which is 1 year in this case
By putting values, we have:
Future Price = $3.07 per bushel * e^[(3.7% + 0.2%)*1 year]
Future Price = $3.19208 per bushel
Pollo Campero,a chicken restaurant chain based in Central America,is using the following method for expanding operations in the United States:A) joint ventures.B) licensing.C) exporting.D) franchising.E) acquisition.
Answer:
D) franchising.
Explanation:
The franchising is a type of license in which a franchisee party allows the access to his business to the other business person that we called franchisor with respect to the knowledge, trademarks, process in order to sell the product
Here the Pollo Campero expands its business operations in the united states this represents the franchising
Hence, the correct option is B
In the short run, an increase in the aggregate price level caused by a shift in the aggregate demand curve first causes:
Answer: b. movement along SRAS
Explanation:
When the price level changes due to an increase in the demand that forces the Aggregate demand curve to shift rightward, the immediate effect would be that the Aggregate demand curve would intersect the Short Run Aggregate supply at a new point.
This new point will see a movement along the SRAS from its previous equilibrium point to the new equilibrium intersection point with the AD curve. In other words, the new point will be on the same SRAS curve just moving from one point to another.