an investor is considering investing in one of two companies. the companies have very similar reported financial position and results of operations. however, only one of the companies has its financial statements audited.

Answers

Answer 1

a. The company's financial statements gain credibility as a result of audits. The investor is confident that there is a minimal likelihood that the financial statements would considerably deviate from widely accepted accounting principles.

b. Lack of an audit may have the effect that the investor is fearful of taking risks

An audit, what is it?

To ensure that all departments are using a documented system of documenting transactions, an auditor must examine or inspect multiple books of accounts in addition to physically examining inventory.

a. By lowering investment risk, audited financial accounts make this transaction easier. In particular, audits lessen the risk of information risk associated with the financial statements, or the risk that the information used to make the investment choice is incorrect. The risk that the company won't be able to pay its debts is known as business risk, and it is not immediately impacted by audited financial accounts.

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The correct question is:"

An investor is considering investing in one of two companies. The companies have very similar reported financial positions and results of operations. However, only one of the companies has its financial statements audited.

a. Describe what creates the demand for an audit in this situation. Include a discussion of how audited financial statements facilitate this investment transaction and the effect of the audit on business risk and information risk.

b. Identify the potential consequences to the company of not having its financial statements audited."


Related Questions


Which one of the following would be the most liquid
investment?
Question 1 options:
Series EE bond
Stock
Money market instruments
Real estate

Answers

The most liquid investment among the options provided would be money market instruments. Money market instruments are short-term, low-risk debt securities issued by governments, corporations, and financial institutions.

They are highly liquid because they have a short maturity period and can be easily bought or sold in the market at their current market value. Money market instruments include Treasury bills, certificates of deposit, commercial paper, and repurchase agreements.
On the other hand, Series EE bonds have a longer maturity period and can only be redeemed after a certain period, making them less liquid than money market instruments. Stocks can be liquid investments, but their liquidity depends on factors like the company's size, trading volume, and market conditions.

Real estate, while it can be a valuable investment, is generally not considered a liquid investment as it may take time to find a buyer and complete the sale.
Money market instruments are the most liquid investment among the options provided due to their short-term nature, low-risk profile, and ease of buying and selling in the market.

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Which knowledge area has been identified by architects, carpenters, and building inspectors as important in their work?

mathematics
building and construction
design
customer and personal service

Answers

Answer:

Building and Construction

Explanation:

Edg

Help PLEASE!!

Why are healthy individual finances important to the economy in North America?

Answers

Healthy individual finances important to the economy in North America because it contributes to the Nation's economy, which supports the global economy. This helps to rise the job opportunities for a region.

Individual financial health is critical to the North American economy since it contributes to the nation's economy, which in turn supports the global economy.

What type of economy does North America have?

The economy of the North America is one of the biggest economy in the world. Its economy is classed as sophisticated and mixed. It is one of the world's most powerful economies. This contributes to a region's increased job opportunities.

Thus, it contributes to the nation's economy, which in turn supports the global economy.

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A scale drawn on the map shows that 1 inch represents 40 miles. If two cities are 2.5 inches apart on the map, what is the distance between them in real life?

A. 100 Miles
B. 90 Miles
C. 70 Miles
D. 60 Miles​

Answers

D.60 miles and the inch represent

If two cities are 2.5 inches apart on the map, 60 Miles​ is the distance between them in real life. Thus, its D.

What is a map?

A map is a sign that emphasizes the connections between various components of a space, such as locations, themes, or objects. Some maps are dynamic or interactive, while others are static and attached to paper or another long-lasting material.

Maps can represent any location, actual or imagined, without respect to context or scale, as seen in brain mapping, DNA mapping, or computer routing protocol mapping, despite the fact that they are most frequently employed to describe geography.

The space that is being mapped can be two dimensional, like the earth's surface, three dimensional, like the earth's interior, or further abstract environments of any dimension, like those that emerge when modeling phenomena with lots of independent variables.

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Bonds are essentially...


A. illegal except for those issued by public utility companies.

B. either common or preferred types of bonds.

C. designed to help prevent trusts.

D. loans to a corporation.

Answers

Answer:

Its D pretty sure

Explanation:

D. Loans to a corporation

Hope this helps :))

researchers have found with kohlberg's theory of moral development there is a limitation of adolescent concern in the areas of _______.

Answers

Researchers have found that with Kohlberg's theory of moral development, there is a limitation of adolescent concern in the areas of social justice and ethical reasoning.

Kohlberg's theory proposes that individuals progress through distinct stages of moral development, with each stage representing a higher level of moral reasoning. However, it has been observed that during adolescence, individuals often show a limited concern for social justice and tend to prioritize their own interests and immediate social circle over broader ethical considerations.

Adolescents may exhibit egocentric tendencies, focusing more on personal gains, peer acceptance, and conformity to social norms rather than deeply considering moral dilemmas or societal issues. This limitation in their moral concerns during this stage of development suggests that their moral reasoning may still be evolving, and they have yet to fully internalize broader ethical principles and perspectives.

It is worth noting that while Kohlberg's theory provides valuable insights into moral development, it is not without its critics and alternative theories that offer different perspectives on the factors influencing moral reasoning at different stages of life.

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Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. What is the total amount that will be reported for inventories?

Answers

Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500.  The total amount that will be reported for inventories is $54,560

On the balance sheet:

Raw materials amounted = $45,600

Finished goods = $8,960

cash equivalents = $10,500

Now,

The total amount of inventory will include only the raw material and the finished goods

The cash is not included in the inventory

Therefore,

The total amount that will be reported in the inventory will be

= Amount of raw material + Amount of finished goods

= $45,600 + $8,960

= $54,560

Therefore the total amount that will be reported for inventories is $54,560.

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______ is focused on understanding the total cost of acquisition and the costs associated with ongoing use and maintenance of a system.

Answers

Total Cost of Ownership (TCO) is focused on understanding the total cost of acquisition and the costs associated with ongoing use and maintenance of a system.

TCO includes not only the initial purchase price but also factors such as installation, training, upgrades, maintenance, and support. Understanding TCO is important for businesses to make informed decisions about their investments and to ensure that the long-term costs of a system are taken into account.

By considering TCO, businesses can better evaluate the true value of a solution and make decisions that align with their budget and goals.

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The Statement of Cash Flows must
include which of the following
categories?
A. Net Income
B. Operating Activities only
C. Investing Activities only
D. Non-Cash Activities

Answers

Answer:

The correct answer is B. Operating Activities only.

Explanation: The Statement of Cash Flows must include Operating Activities, Investing Activities, and Financing Activities. Non-Cash Activities are not included.

Choose a company you frequently buy from.
For example: Nike, McDonald's, Wawa
Now, identify that company's target market and marketing mix.

Answers

Coca Cola follows a price discrimination strategy in its marketing mix and the target market is younger customers within the age bracket of 10-25.

What is Marketing mix?

These are set of marketing tools that the firm uses to pursue its marketing objectives in the target market.

Coca Cola follows a price discrimination strategy in its marketing mix  means that they charge different prices for their products and its target market are young customers.

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As you read through the draft of your message, you consider whether parts of your message should be rearranged to make your point more effective. Proofreading Evaluating Editing

Answers

Answer:

The correct answer will be "Editing".

Explanation:

Editing seems to be the process where even the letter being written is reconstructed or reconfigured to more efficiently express the letter. Arranging, modifying, as well as assembling a recorded, written, or video content for official completion, commonly by such an individual except for the producer of the content (considered as an editor).

The other options in question aren't relevant to the particular circumstance. So the option available here is just the right one.

The role of the Federal Reserve Board of Governors is to:
A. loan money to multinational corporations.
B. set discount rates and reserve requirements.
O c. enforce monetary policy on Federal Reserve banks.
O D. establish new Federal Reserve districts.

Answers

The role of the Federal Reserve Board of Governors is to enforce monetary policy on Federal Reserve banks. Hence, Option C is correct.

What is monetary policy?

In macroeconomics, there is a policy whose duty is to make sure that policies that are made by the  Board of Governors have been applied to all the central banks. This policy is known as monetary policy, which manages the flow or supply of money to all the banks.

This policy also manages the interest rate. Just like other policies, monetary policy also has some tools, With the help of these tools, it is easy to manage the policy. Tools are named as operations for the open market, requirements of the reserve, and lastly rate of discount.

Therefore, Option C is correct.

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A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150- 0.01 x Demand for an annual printing of this particular product. The fixed costs per year (i.E., per printing) =$50,000 and the variable cost per unit =$40. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year? What is the unit price at this oint of optimal demand?

Answers

Answer:

a. The maximum profit that can be achieved is $300,000.

b. The unit price at this point of optimal demand is $90.

Explanation:

From the question, we can obtain the following:

x = Maximum expected demand = 6,000 units

Price = 150 - 0.01 x = 150 - (0.01 * 6,000) = 150 - 60 = $90

Fixed cost per year = $50,000

Variable cost per unit = $40

Total variable cost = Variable cost per unit * Maximum expected demand = $40 * 6,000 = $240,000

Total cost = Fixed cost + Total variable cost = $50,000 + $240,000 = $290,000

Revenue = Price * Maximum expected demand = $90 * 6,000 = $540,000

Therefore, we have:

a. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year?

Profit = Revenue - Total cost = $540,000 - $240,000 = $300,000

Therefore, the maximum profit that can be achieved is $300,000.

b. What is the unit price at this point of optimal demand?

As already stated above, the following are given in the question:

x = Maximum expected demand = 6,000

Price = 150 - 0.01 x ........................... (1)

Substitute for x in equation (1), we have:

Price = 150 - (0.01 * 6,000) = 150 - 60 = $90

Therefore, the unit price at this point of optimal demand is $90.

PLS HELP 60 POINTS BRAINLIEST FOR CORRECT
Not sure what subject really
Match each definition to the relevant economic indicator.

1. The total market value of all the finished goods and services of a country
2. The total quantity of goods produced in a country divided by its total population
3. The percentage of a population who are looking for a job but cannot find one
4. The rate at which the prices of goods and services increase

a. Unemployment rate
b. Inflation rate
c. Gross domestic product per capita
d. Gross domestic product

PLS HELP 60 POINTS BRAINLIEST FOR CORRECTNot sure what subject reallyMatch each definition to the relevant

Answers

Real GDP - measure of economic output adjusted to inflation or deflation

Nominal GDP -  measure of economic output before adjusting for inflation

Gross National Product - right measure of a country's economic output produced all over the world

GDP - Right measure of a country's output, income and expenses

NEXT

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Answer: Pairs

measures general price changes occurring

in an economy

consumer price index (CPI)

the total dollar amount of all goods,

services, and structures (buildings)

produced within a country in a year

gross domestic product (GDP)

when one country or organization has

the ability to produce a good or service

at a lower cost than competitors

comparative advantage

an increase in the supply of currency

that results in a decrease in the currency's

value and higher prices

inflation

the result of an alternative option that

is lost because you chose a different plan

opportunity costs

Explanation:

plato

all of the following are safeguards for inventory except: multiple choice question. taking two inventory counts by different counters. using counters that are responsible for inventory. having counters confirm the existence, amount, and condition of inventory. having a manager confirm inventory counts.

Answers

All of the following are safeguards for inventory Having counters confirm the existence, amount, and condition of inventory. Having a manager confirm inventory counts. Taking two inventory counts by different counters

A guard, in international law, is a restraint on global alternate or economic development to protect communities from development aggression or home industries from overseas competition. In the global trade corporation (WTO), a member may additionally take a protective movement, such as proscribing imports of a product temporarily to guard a home enterprise against growth in imports inflicting or threatening to purpose damage to home production. Within the United Nations Framework conference on climate trade, safeguards are meant to guard indigenous peoples and other local communities with traditional know-how of natural aid control inside efforts closer to reducing emissions from deforestation and wooded area degradation. The WTO and UNFCCC concepts are related to international regulation.

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Answer: using counters that are responsible for inventory

Explanation:

In your budgeting process, when should you look at recurring expenses?

- Before looking at your needs
- After your wants but before you needs
- After considering entertainment expenses
- Before reviewing your wants

Answers

In your budgeting process, you look at recurring expenses Before reviewing your wants. option d

What is meant by budgeting?

A spending plan based on income and costs is called a budget. In other words, it's a projection of your income and expenses for a specific time frame, like a month or a year. (Or, if you're keeping track of the money coming in and going out of your home as a whole, that's a family budget.)

The operating or current budget, the capital or investment budget, and the cash or cash flow budget are the three different types of budgets used by governments.

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Which of these are NOT basic approaches to minimizing the agency problem?
ignore the conflict of interest
monitor managers' actions
align managers' personal interest with those of the owners by making the managers owners
all of these choices are correct.

Answers

The agency problem refers to the conflict of interest between the principals (owners) and the agents (managers) who act on their behalf. The agents may prioritize their own interests over those of the owners, leading to a suboptimal outcome.

The option that is NOT a basic approach to minimizing the agency problem is "ignore the conflict of interest." There are several approaches to minimizing this problem, including monitoring managers' actions, aligning their personal interests with those of the owners, and eliminating the conflict of interest. However, the option "ignore the conflict of interest" is NOT a basic approach to minimizing the agency problem. Ignoring the problem can lead to further divergence between the interests of the owners and managers, potentially resulting in reduced firm performance and value. It is important to acknowledge and address the agency's problem through appropriate mechanisms to ensure that managers act in the best interest of the owners. Thus, the correct answer to your question is: "Ignore the conflict of interest."

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Note that common skills are listed toward the top, and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by Librarians? Check all that apply.

speaking
equipment selection
reading comprehension
operation and control
active listening
writing

Answers

Answer:

1,3,5,6

Explanation:

Answer:

(1) A. speaking

(3) C. reading comprehension

(5) E. active listening

(6) F. writing

Explanation: I'm looking at my answers right now and it shows check marks so I'm 100% correct.

what is the general direction of centurion from bronkhorstspruit​

Answers

The general direction of centurion from bronkhorst spruit is to taxi which costs R 1 100 - R 1 400 and typically takes 43 min

This; however, is the fastest way as well to get to Centurion from Bronkhorst spruit.

Bronkhorst Spruit simply refers to a river in the Mpumalanga and Gauteng provinces of South Africa.

Bronkhorst Spruit literally means watercress stream.

What is direction?

Direction can simply be defined as that course/path along which someone takes or something moves.

So therefore, the general direction of centurion from bronkhorstspruit is taxi which costs R 1 100 - R 1 400 and takes 43 min

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the economy begins at full employment and the cnsumers begin spending a smaller portion of their incomes this would lead to

Answers

If consumers begin spending a smaller portion of their incomes while the economy is at full employment, this would likely lead to a decrease in aggregate demand.

When consumers spend less, it directly affects the consumption component of aggregate demand, which is one of the key drivers of economic activity. A decrease in consumer spending can have ripple effects throughout the economy. The decrease in aggregate demand can lead to several potential outcomes: Reduced business revenues: With lower consumer spending, businesses may experience a decline in sales and revenues, which can affect their profitability and potentially lead to cost-cutting measures such as layoffs or reduced investment. Decreased production and employment: If businesses face reduced demand for their goods and services, they may scale back production, leading to lower employment levels. This can result in a rise in unemployment and reduced income for workers. Slowdown in economic growth: Reduced consumer spending can contribute to an overall slowdown in economic growth, as it affects multiple sectors and reduces the overall level of economic activity. Potential deflationary pressures: If the decrease in consumer spending persists and businesses struggle to sell their goods and services, it can lead to a decrease in prices (deflation) as companies may engage in price reductions to stimulate demand. Policymakers may respond to this situation by implementing measures to stimulate consumer spending, such as fiscal policies (tax cuts, increased government spending) or monetary policies (lowering interest rates) to boost aggregate demand and support economic activity.

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The table shows a point-based grading system.

A 3 column table with 12 rows. Column 1 is labeled Letter grade with entries A plus, A, A minus, B plus, B, B minus, C plus, C, C minus, D plus, D, E/F. Column 2 is labeled Percent grade with entries 97 to 100, 93 to 96, 90 to 92, 87 to 89, 83 to 86, 80 to 82, 77 to 79, 73 to 76, 70 to 72, 67 to 69, 65 to 66, below 65. Column 3 is labeled 4.0 Scale with entries 4, 4, 3.7, 3.3, 3, 2.7, 2.3, 2, 1.7, 1.3, 1, 0.

Jennifer wants to figure out her grade point average for this semester. She received a B in English, a C- in math, and an A in social studies.

Based on the table, what is Jennifer’s GPA?

1.9
2.9
3.0
4.0

Answers

Answer:

ITS 2.9

Explanation:

i did the test

Answer:

its A, 2.9

Explanation:

A mail-order firm processes 4,400 checks per month. Of these, 70% are for $34 and 30% are for $66. The $34 checks are delayed three days on average; the $66 checks are delayed four days on average. Assume 30 days in a month.

a-1. What is the average daily collection float? (Do not round intermediate calculations. )

a-2. How do you interpret your answer? (Do not round intermediate calculations. )

b-1. What is the weighted average delay? (Do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )

b-2. Calculate the average daily float. (Do not round intermediate calculations. )

c. How much should the firm be willing to pay to eliminate the float? (Do not round intermediate calculations. )

d. If the interest rate is 6% per year, calculate the daily cost of the float. (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e. G. , 32. 16. )

e. How much should the firm be willing to pay to reduce the weighted average float to 1. 5 days? (Do not round intermediate calculations. )

Answers

a-1) The average daily collection float  is $22,088

a-2) There is $22,080 that is uncollected and not available to the firm.

b-1) The weighted average delay is $191,840

b-2) The average daily float is $22,061.60

c) The firm be willing to pay to eliminate the float is  $22,061.60

d)The average daily interest 3.46

e) New average daily float is: $9,591.99

Cash on collection:

Cash on collection is said to be a function that explains the process whereby a company recovers cash from several businesses to whom it has previously issued a bill. These bills are issued with the duration of payment.

a-1 Calculating the average daily collection float :

Average daily collection float = (4,400× 70% × $34 × 3) + (4,400 × 30% × $66 × 4 ) / 30 days

= $22,088

a-2) On average, there is $22,080 that is uncollected and not available to the firm.

b-1)Calculating the weighted average delay

Total collection= 4400 × 70% × $34 + 4400 × 30% × $66

                         = $191,840

b-2) Calculating the average daily float

Average daily float = Weighted average delay × (Total collection/ 30 days)

= 3.45 × ($191,840/ 30 days)

= $22,061.60

c) $22,061.60 is the firm be willing to pay to eliminate the float

d) Calculating average daily interest

(1 + Interest rate) = \((1+R)^3^6^5\)

(1+ 0.06) = \((1+R)^3^6^5\)

R = 0.01596% per days

Daily cost of float = Average daily float × R

                             = $22,061.60 × 0.01596%

                             = 3.46

e) New average daily float = 1.5 days (Total collection/ 30 days)

                                             = 1.5 days × ($191,840/30days)

                                             = $9,591.99

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true or false? it is never wise to apply for a store credit card that you do not purchase from very often in order to get an immediate discount?

Answers

False, It is never a good idea to apply for a shop credit card from a retailer you do not use frequently just to receive a deal right away.

You can utilize a credit line provided by the a credit card for purchases, cash advances, and/or money transfers as long as the loan will ultimately be repaid in full. Using credit cards responsibly is one of the best ways to build a strong credit history. This will enable you to access more housing possibilities, receive more favorable interest rates on large loans such as mortgages and vehicle loans, pay less for insurance, and more. Your card issuer owes you money, which appears as a credit balance on your billing statement. Each time you make a payment, credits are applied to your account. When you return something you purchased with your credit card, you can receive an additional credit.

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How do you record a sales invoice in general journal?

Answers

The total amount owed from the invoice can be recorded as a debit in the accounts receivable account for the journal entry. In the sales account, you also record the total sum owed from the invoice as a credit.

What is the sales invoice journal entry?

A cash or credit sale to a customer is noted in a sales diary entry. It does more than just list how much money was spent on the transaction. Changes to accounts like the Cost of Goods Sold, Inventory, and Sales Tax Payable accounts should also be reflected in the sales journal entries.

Is the sales journal where the sales invoice is recorded?

In the sales journal, each sale transaction normally includes the transaction number, account number, customer name, invoice number, and sales amount.

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one criticism of the official u.s. measure of poverty is that it question 13 options: it does not take into consideration the cost of food does not take into consideration variations in the cost of living around the country into consideration childcare and healthcare costs which are minimal it takes into consideration the cost of food but doesn't acknowledge the decrease in the cost of food

Answers

The criticism of the official U.S. measure of poverty that is most closely aligned with the options provided is:

It does not take into consideration variations in the cost of living around the country.

The official U.S. measure of poverty, also known as the poverty line or poverty threshold, is based on a set of income thresholds that vary by family size and composition.

If a family's income falls below the threshold, they are considered to be in poverty.

However, critics argue that the official poverty line does not take into account regional differences in the cost of living.

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Tony, Juan, and Isabel live in a city where the combined state and local sales tax rate is 8%. They each purchased the same computer and paid $160 in sales tax. A 5-column table has 3 rows. The first column has entries Tony, Juan, Isabel. The second column is labeled Income with entries 10,000, 50,000, 75,000. The third column is labeled Cost of computer with entries 2,000, 2,000, 2,000. The fourth column is labeled Sales tax paid with entries 160, 160, 160. The fifth column is labeled tax rate with entries 1.6 percent, 0.32 percent, and 0.21 percent. This scenario describes a tax system. Isabel pays Tony and Juan on the computer. pays the highest tax rate on the computer. would be the most affected by an increase in the sales tax rate.

Answers

Answer:

Tony pays the highest tax rate on the computer, not based on the nominal sales tax rate, but on the percentage that the tax represents of his total income.

His income is $10,000, and he pays $160 in sales tax, for an effective rate of 1.6%.

The person who would be the most affected by an increase in the sales tax rate is again, Tony, simply because he has the lowest income. Juan and Isabel would also be affected by a sales tax increase, but on a much lower scale (because their incomes are also a lot larger).

a) The scenario described by the 5-column table with 3 rows showed that Tony paid the highest tax rate (effective) on the computer, based on his income level.

b) Tony would be the most affected by an increase in the sales tax rate because his effective tax rate would increase, causing him to suffer the most.

What is a sales tax?

A sales tax is a proportional tax that charges the same percentage on the consumption of goods and services without considering a person's income level.

Data and Calculations:

Tax Payer    Income      Cost of Computer   Sales Tax Paid   Tax Rate

Tony          $10,000              $2,000                      $160           1.6%

Juan           50,000                 2,000                        160           0.32%

Isabel         75,000                 2,000                        160           0.21% ($160/$75,000 x 100)

Thus, this scenario of a tax system illustrates that sales tax is not progressive, but it is proportional since it is based on consumption and not income level.

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One shareholder asked if Contemporary Toy experiences a price decrease next year, while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: consider what would happen to the number of break-even units and to the margin of safety).
Moreover, how to minimize the risk (name three risks), maximizing the profit of Contemporary Toy applying the concept of ‘the number of break-even units and to the margin of safety’ in this new one global market.

Answers

Experiencing a price decrease would increase risk for Contemporary Toy; to minimize risk and maximize profit in the new global market, they can conduct market research, control costs, and consider diversification and expansion.

How would a price decrease affect risk for Contemporary Toy, and what strategies can they employ to minimize risk and maximize profit in the new global market?

If Contemporary Toy experiences a price decrease next year while all other costs and the number of units sold remain the same, it would increase the risk for the company. This is because a price decrease would likely result in a decrease in the company's revenue and profitability, affecting its ability to cover costs and generate profits.

When the price decreases, the number of break-even units would increase. Break-even units refer to the number of units a company needs to sell in order to cover all its costs and reach the break-even point where it neither makes a profit nor incurs a loss. With a lower price, Contemporary Toy would need to sell more units to cover its fixed and variable costs, thus increasing the break-even point.

To minimize risk and maximize profit in the new global market while considering the number of break-even units and the margin of safety, Contemporary Toy can take the following steps:

Market Research and Analysis: Conduct thorough market research to identify target markets, competitive landscape, and consumer preferences. This will help the company understand demand and pricing dynamics, enabling them to set competitive prices that balance profitability and market demand.

Cost Control and Efficiency: Implement cost control measures to optimize expenses without compromising product quality or customer satisfaction. Streamlining operations, negotiating favorable supplier contracts, and improving production efficiency can help reduce costs and improve profitability.

By considering these strategies and closely monitoring market conditions, Contemporary Toy can mitigate risks associated with price decreases, increase the number of break-even units, and maintain a healthy margin of safety, ultimately maximizing profit in the global market.

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Which of the following is NOT one of the four components of the business process

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Which of the following is NOT one of the four components of the business process

The Pirates of Penzance Company delivers goods to various areas around the world. The company has a great reputation for being prompt on its deliveries. Blackbeard is the owner of the company. Davy Jones works for Blackbeard as an underpaid sailor. Davy knew that Blackbeard loved to read while they were transporting their deliveries and that his favorite book was The Adventures of Huckleberry Finn. Davy gave Blackbeard a valuable first edition of Twain's work hoping that Blackbeard would give him a raise in pay. A day later, Blackbeard promised to give Davy a pay raise of 18% because he was very pleased with the book. The following week when Davy received his check, he noticed that the raise was missing and he asked Blackbeard for the money. Blackbeard refused to give him his raise and Davy filed suit. Decide the outcome.

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The outcome here is that the court would make blackbeard to give the pay raise that he promised to Davy.

The breach of promise.

Davy may decide to sue because there has been a breach here. He may decide to sue under the proprietary estoppel.

He already met with what was required of him by providing the book to Blackbeard. It was Blackbeard that was unable tyo meet up with his own part.

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How are volatility and risk related in an investment?

A.
a volatile investment is less risky
B.
a volatile investment is more risky
C.
volatility and risk are not related

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The terms volatility and risk are related in an investment because a volatile investment is more risky. The Option B is correct.

What is a volatile investment?

Basically, the term volatility describes when a market or security experiences periods of unpredictable and sometimes sharp, price movements. Most People often think of volatility only when prices fall, however volatility can also refer to sudden price rises too.

Most of the Increased market volatility are caused by economic or policy factors including changes in other markets, interest rate hikes, and the Fed's current monetary policy. A political instability can also lead to market volatility.

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