Absolute cost advantages for incumbents (over new entrants to an industry) typically derive from:
Group of answer choices
a. Economies of scale from market share
b. Control of inputs
c. Higher levels of experience
d. All of the above
Answers
d. All of the above. these factors contribute to the absolute cost advantages of incumbents over new entrants, making it more challenging for new competitors to match the cost efficiency and competitiveness of established industry players.
d. All of the above. Incumbents in an industry typically have absolute cost advantages over new entrants, and these advantages can stem from various factors:
a. Economies of scale from market share: Incumbents often have established operations and a larger market share, allowing them to benefit from economies of scale. They can spread their fixed costs over a larger output, reducing the average cost per unit and gaining cost advantages.
b. Control of inputs: Incumbents may have established relationships with suppliers, allowing them to negotiate favorable terms and secure a stable supply of inputs. This can result in lower input costs compared to new entrants who may face higher prices or difficulties in sourcing inputs.
c. Higher levels of experience: Incumbents have accumulated industry-specific knowledge, expertise, and experience over time. This experience enables them to streamline operations, improve efficiency, and identify cost-saving opportunities that new entrants may not have yet discovered.
Collectively, these factors contribute to the absolute cost advantages of incumbents over new entrants, making it more challenging for new competitors to match the cost efficiency and competitiveness of established industry players.
For more question on industry
https://brainly.com/question/30001696
#SPJ8
Related Questions
one existing business using the lockdown rules to create a new opportunity
Answers
Answer:
Cash balance rs.40,000 and bank balance rs.90000
Answer:
Lockdown has created a huge range of challenges for business of all sizes. Those that do not qualify as essential businesses may have been forced to close their premises, and others that can stay open face a completely changed economic landscape which they are trying to survive in. But it is important to remember that just as there are real challenges, there are also fantastic opportunities.
Here we take a look at some of the unusual opportunities that lockdown has actually created for businesses. They may be an ideal way for your company to survive and thrive in these uncertain times.
Relaxed rules and regulations
The government understands that lockdown has created real challenges for businesses, and it is trying to do things to create further opportunities. This has led to a number of laws being lifted or relaxed to make it easier for businesses to survive.
For example, if your company currently sells food and drink but cannot open due to lockdown rules, there is good news that licencing laws have been relaxed in order to allow pubs and restaurants to offer takeaway food and drink. This is one of many measures brought in to make things easier for small businesses.
Freshen things up
If your business can’t open its premises currently then why not use this opportunity when it is completely empty? Now is the ideal time to carry out a little work on the interior and exterior of the places - add a coat of paint, install new lighting, or completely redecorate. In any case, this will add to the value of the property, impress staff when they return and make your place of work far more inviting for any visitors.
Make big upgrades to your facilities
Whilst it can be very valuable to use this time to redecorate, it’s also a great idea to think bigger. What are the projects that you have been putting off because having them carried out would be hugely disruptive to staff and the normal running of your operation? Most businesses will have a list of these and now could be the ideal time to get them carried out, as there will be no-one there to disrupt.
Many buildings maintenance companies are still able to install facilities such as air conditioning while maintaining safe working practice and social distancing. And there may even be tasks you can be carried out by individuals such as fire alarm installation.
Invest in your online store
If you have always focused on your bricks and mortar business, now could be the perfect time to invest in selling online. If you can’t currently open your store it is a great way to keep things ticking over, and potentially open up a new avenue for you to really thrive in.
Many businesses have never expanded into the online space because they don’t have the time or they think it is too complex. But having the downtime available in lockdown gives business owners the chance to sort out any kinks and try it out.
Explore new ways of working
Lockdown has forced many people to work from home when they may not have experienced it before. And this is just one example of new ways of working that businesses are being forced to explore in order to stay within the guidelines of lockdown.
Whilst it can create challenges (and some
under the equity method, dividends received from an investee company are credited to the
Answers
Under the equity method of accounting, dividends received from an investee company are credited to the investor's income statement as a reduction in the investment's carrying value. This is because dividends received by the investor represent a distribution of the investee's earnings, which ultimately reduce the investor's proportional ownership in the investee.
When an investor uses the equity method, it records its share of the investee's earnings or losses in its income statement and adjusts the carrying value of the investment on its balance sheet accordingly. Dividends received by the investor are considered a return on the investment and reduce the carrying value of the investment.
It is important to note that the equity method is typically used when the investor has significant influence over the investee but does not control it. In contrast, if the investor has control over the investee, it would consolidate the investee's financial statements instead of using the equity method.
To know more about equity method click here:
https://brainly.com/question/30780060
#SPJ11
The profession of marketing is only about
years old.
A.3000
B. 50
C. 1000
D. 100
Answers
Answer:
B.50 anserwer........Explanation:
TYWhich of the following is NOT true about emergency funds?
a,They can keep you from borrowing money from friends and family.
b,They help remove the worry about expenses not in the budget.
c,They are used for anything listed on the budget.
d,They help you prepare for unexpected expenses.
Answers
Answer:
The answer is "They are used for anything listed on the budget."
The option that is NOT true about emergency funds is: c. They are used for anything listed on the budget.
What is emergency funds?Emergency funds are usually not used for things that are planned and included in the budget. Instead, emergency funds are money saved specifically for unexpected expenses that you didn't plan for in your usual budget.
The reason for having an emergency fund is to have money saved for unexpected things that might happen, like when someone gets hurt and needs to go to the hospital or when a car or home needs fixing. It can also help if someone loses their job or if something else happens that they didn't expect.
Read more about emergency funds here:
https://brainly.com/question/13420184
#SPJ6
Last week David spent $12,500 on advertising. This week he plans to spend twice as much. Next week he wants to spend half of what he spent the previous two weeks. How much should he plan to spend on advertising next week?
Answers
Answer: $18,750.00
Explanation: So what you'll do is (12,500 * 2) + 12,500 / 2 = 18,750
$18,750 he plans to spend on advertising next week. Advertising allows you to effectively communicate with your target audience, but you must ensure that the story your brand tells adds value to your company and resonates with your target market.
Why are advertising costs so high?Because of limited supply and high demand, TV commercials are frequently costly. Search engine optimization (SEO) is often less expensive because there are endless opportunities for development; however, even SEO can be costly under the right conditions.
Given,
Last week's spending on Advertising = $12,500
The current week's spending on Advertising is twice the previous spending = 2 x 12500 = 25000
Required to find next week's spending which half of what he spent the previous two weeks =?
next week's spending = 12500 + 25000 / 2 = $18750
Regardless of how you deliver your company's message (door-to-door or in print), the power of advertising is an investment you should not overlook. Long-term advertising establishes brand image, reputation, and trust, while short-term advertising raises awareness, and credibility, and provides new information.
If you aren't meeting your current revenue targets, it may be time to increase your ad spending. But, before you start increasing your advertising budget, determine how much you'll need to invest to meet your objectives.
Thus, David plans to spend $18,750 on advertising next week.
Learn more about Advertising here:
https://brainly.com/question/3163475
#SPJ6
A zero-coupon Treasury bill maturing in 150 days is trading at $98 per $100 face value. Determine the following rates for the T-bill:
Dealer’s annual discount yield? (use 360-day count convention)
Yield to maturity? (Use an actual 365-day count convention)
Logarithmic return (use an actual 365-day count convention)
Answers
To determine the dealer's annual discount yield for the zero-coupon Treasury bill, we need to calculate the discount rate. The formula for the discount rate is:
Discount rate = (Face value - Purchase price) / Face value
In this case, the face value is $100 and the purchase price is $98. Substituting these values into the formula, we get:
Discount rate = (100 - 98) / 100 = 0.02
To convert this into an annual rate, we need to adjust for the number of days in a year. Since we are using a 360-day count convention, we divide the discount rate by 150/360 (the number of days until maturity out of the total days in a year):
To know more about annual visit:
https://brainly.com/question/25842992
#SPJ11
The customer is the source of data needed for the job and knows everything that is needed to produce an effective printed piece. True False QUESTION 12 What is the final step in any job of printing (from the perspective of the printing company)?
Answers
The final step in any job of printing, from the perspective of the printing company, is typically the delivery or shipping of the printed piece to the customer.
What is the final step in any printing job from the perspective of the printing company?The final step in any printing job, as viewed by the printing company, is the delivery or shipping of the finished printed piece to the customer. This step involves packaging the printed materials appropriately, arranging for transportation, and ensuring that the product reaches the customer's designated location in a timely manner and in good condition. It is an important stage in completing the printing process and fulfilling the customer's requirements.
Learn more about final step
brainly.com/question/16666657
#SPJ11
1. Describe how SaksFirst builds loyalty for Saks Fifth Avenue.
Answers
SaksFirst built loyalty for Saks Fifth Avenue by broadening its reach and offering more benefits like:
free membership for cardholders without minimum spending earning points toward SaksFirst card with first purchases and free shipping from Saks stores.How do brands build loyalty?Customers only continue to buy or patronize a brand if they feel they can trust the company, this is brand loyalty. Loyalty can be achieved through engaging customers, being reliable, keeping the price reasonable and incentives.
In the case of SaksFirst, they built loyalty by offering free memberships to Saks Fifth avenue customers, giving points for first card purchase and free shipping.
Learn more on brands here: https://brainly.com/question/14293418
#SPJ1
Which potential shortcoming below matches the contingent valuation method?
a. It assumes ceteris paribus to evaluate observed pricing as a means to attribute costs to externalities.
b. It might not consider the heterogeneity of the population.
c. It relies on survey-based information that is subject to biases.
d. It is limited by assessed inputs and might not consider wider economic impacts.
Answers
The potential shortcoming of the contingent valuation method is that it relies on survey-based information that is subject to biases. So, option (c) is correct.
This is because the contingent valuation method involves asking individuals to state their willingness to pay (WTP) for a particular good or service, which is then used to estimate its economic value. However, survey responses can be influenced by various factors, such as social desirability bias, protest responses, or framing effects, which can lead to inaccurate or unreliable estimates of WTP.
Additionally, the contingent valuation method assumes that individuals have a clear understanding of the good or service being valued and its associated benefits and costs, which may not always be the case. As a result, the method may be less reliable in situations where the good or service in question is complex or unfamiliar to respondents.
While options (a), (b), and (d) are also potential shortcomings of the contingent valuation method, they do not match as closely with the survey-based bias issue as option (c).
So, option (c) is correct.
Learn more about valuation:
https://brainly.com/question/28342542
#SPJ11
The US Senate has approved approximately how many treaties?
O 2.500
O 1,500
O 2,000
O 1.000
Answers
Answer:
2500
Explanation:
The United States Senate has approved approximately 2500 treaties. This assertion is based on the statistics that fifty years after the United States independence, the US Senate has only approved 60 treaties. By the period World War II began in 1939, the US Senate has approved another 800 treaties. Also, between 1940 to 1989, the United States Senate has approved an additional 759 treaties. And between 1989 to this moment, the United States Senate has reportedly approved 890 treaties.
Hence, summing all of them together, we have 60 plus 800, plus 759, plus 890, making it 2509 treaties. That is approximately 2500 treaties.
Answer:
B. 1,500
Explanation:
It’s on the passage
Think about a big purchase you would like to make. What is your big purchase? How long do you think you will need to save to make that purchase? Why?
Answers
Answer:
I would buy land and things for shooting
Explanation:
at least a couple of years to do it
Roberta thinks that she should store all of her savings under her mattress. Her son micah wants her to invest the money. He tells her that when money is invested or saved in an account earning interest, that sum increases in value over time without the owner doing anything. What concept is micah trying to teach roberta?.
Answers
The time Value of Money concept is Micah trying to teach Roberta. To summarize, people believe that money has value because they believe they will be able to exchange it for goods and services in the future.
Why does the value of money in a savings account increase over time?Money today is worth more than money tomorrow, according to the concept of the time value of money. This is due to the fact that money today can be spent, invested in, or grown. As a result, a dollar earned today is not the same as a dollar earned a year from now because money earned today can generate interest, unrealized gains, or unrealized losses.
The concept of the time value of money (TVM) states that a sum of money is worth more now than it will be at a later date due to its earning potential in the interim. The time value of money is a fundamental financial principle. A sum of money in one's hand is worth more than the same sum paid in the future.
Learn more about the value of money here:
https://brainly.com/question/8438252
#SPJ1
In her new margin account, a client purchases $60,000 of abc and pays for the shares in full. As the result of this trade, the sma in the account would be?
Answers
The correct option is c that is $7500.
What is SMA?
The excess margin from a customer's margin account is stored in a Special Memorandum Account (SMA), which is a Specialised Investment Account.An SMA is equivalent to the excess equity or buying power balance inside a margin account, which represents the sum of money required by an investor to purchase assets.The SMA levels of margin accounts are calculated by brokerage firms at the conclusion of each trading day.Customers can buy more securities for the margin account with money from their SMA. Withdrawals of money first from brokerage account and the execution of buy orders for stocks both result in a fall in the SMA balance.
A short account's market value decreases by $1 for every $1 of SMA to be created. The SMA balance might be $7,500 if somehow the market value decreases by $5,000.
Learn more about SMA here:
https://brainly.com/question/18689981
#SPJ4
The complete question is mention below:
In a new margin account, a customer sells short $60,000 worth of ABC stock and deposits $30,000 to meet the Regulation T requirement. If the value of ABC falls to $55,000, the SMA balance in the account would be:
A) 10000.
B) 5000.
C) 7500.
D) 2500.
Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 5, provided the interest rate is 6% per year. The present worth is $
Answers
To find the present worth of cash flows of $1000 that start now and continue through year 5, we need to use the present value formula. We know the interest rate is 6% per year, and the cash flows occur at the end of each year. Using a financial calculator or Excel, we can find the present value to be $4,212.10. This means that if we invest $4,212.10 today at 6% interest, we will have $1,000 at the end of each year for the next five years.
The present worth is the amount we need to invest today to receive the future cash flows. It's important to note that as the interest rate increases, the present value will decrease, and as the interest rate decreases, the present value will increase. In summary, the present worth of cash flows of $1000 that start now and continue through year 5 at 6% interest per year is $4,212.10.
To find the present worth of cash flows of $1000 that start now (time 0) and continue through year 5, provided the interest rate is 6% per year, you'll need to use the present value formula. The present value formula is:
PV = CF / (1 + r)^n
where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods.
Step 1: Identify the cash flow, interest rate, and number of periods.
CF = $1000
r = 0.06
n = 0 to 5
Step 2: Calculate the present value for each year.
PV(0) = 1000 / (1 + 0.06)^0
PV(1) = 1000 / (1 + 0.06)^1
PV(2) = 1000 / (1 + 0.06)^2
PV(3) = 1000 / (1 + 0.06)^3
PV(4) = 1000 / (1 + 0.06)^4
PV(5) = 1000 / (1 + 0.06)^5
Step 3: Add up the present values.
The present worth = PV(0) + PV(1) + PV(2) + PV(3) + PV(4) + PV(5)
After calculating the present values for each year and summing them up, the present worth of the cash flows is approximately $4,718.07.
To know more about Excel visit
https://brainly.com/question/30324226
#SPJ11
Acompany sells 1,000 shares on a subscription basis that requires the buyer to pay 2 USD for each share. The remaing balance is to be paid 2 months later by shareholders.
Draft the transaction accounting procedures at the time of subscription and once receivable payment is paid in full.
share price = 10
Answers
Transaction Accounting Procedures at the Time of Subscription: When the company sells 1,000 shares on a subscription basis, it records the following accounting entries.
Debit Cash (1,000 shares × $2) for $2,000.
Credit Share Capital (1,000 shares × $10) for $10,000.
Credit Share Subscription Receivable for $8,000.
The cash received is debited, reflecting the amount received from the subscribers. The Share Capital is credited at the par value of the shares, and the remaining balance is credited to the Share Subscription Receivable.
Transaction Accounting Procedures Once Receivable Payment Is Paid in Full: Once the remaining balance is paid by the shareholders, the company records the following accounting entries. Debit Share Subscription Receivable for $8,000.Credit Cash for $8,000.The Share Subscription Receivable account is debited to eliminate the outstanding amount, while the Cash account is credited to reflect the receipt of the remaining payment.
Learn more about accounting procedures here:
https://brainly.com/question/33010124
#SPJ11
Rule of law is defined as "the restriction of the arbitrary exercise of power by subordinating it to well-defined and established laws." And includes concepts such as: property rights, government integrity, and judicial effectiveness.
In two separate paragraphs, please explain how Rule of Law is relevant for
National economies (paragraph 1), and
Growth of businesses (paragraph 2)
Answers
The rule of law is relevant for national economies as it promotes transparency, accountability, and limits the possibility of corruption. It also ensures the protection of property rights, promotes fair competition, and encourages investors.
The rule of law limits the arbitrary use of power, promotes transparency, and accountability. This is significant for national economies as it makes a country a favorable destination for investment. The rule of law assures investors that their contractual agreements will be enforced, and their property rights will be protected.
In a stable legal system, businesses feel encouraged to invest more and expand, which leads to the growth of the economy and development. The legal system provides a framework that ensures economic growth by promoting fair competition, market-oriented strategies, and accountability. Thus, the rule of law plays a crucial role in national economies and creates a conducive environment for business growth and development. Its presence assures the enforcement of contracts, and minimizes risks and uncertainties that are associated with transactions.
Learn more about transactions:
https://brainly.com/question/24730931
#SPJ11
Rafael is the accounts receivable clerk for a large company. On many occasions, customers come personally to the company to pay their accounts in cash. Rafael would sometimes borrow cash from the money he collected from customers for his own use with the intention of paying it back when he gets paid at the end of the week. Answer the questions below:
Answers
Answer:
The internal controls of the company are weak.
Explanation:
Rafael is borrowing cash from the money that he collects from customers on behalf of the company. He borrows the money and intends to pay back later to the company without informing anyone. This is weakness of internal control in the company system as there is no one who can check back whether Rafael has paid back money that he borrowed or not.
Measuring conversions is a good way to calculate your ROI. Which of the following is a commonly calculated conversion? a shares, b sediment, c downloads, d likes
Answers
A commonly calculated conversion from the list is shares. The answer to this question is option a.
What are shares?Shares can be described as a unit that is called mutual funds. The owner of a share is regarded as a shareholder.
Shares can be converted to be money. Therefore it is the best answer to this question.
Read more on shares here:
https://brainly.com/question/25818989
Suppose the skills needed to perform the work in the two industries are identical, and the supply of labor to the two industries is fixed at 6,000 workers per day. What will be the equilibrium wage, and how many workers will work in each industry?
Answers
Answer and Explanation:
The computation of the equilibrium wages and the number of workers in each industry is as follows:
Since the supply of labor is 6,000
As per the attached graph, the common rate is $8 per hour so if we take 2000 workers in industry A and 4000 workers in industry b
So, the equilibrium wage would be $8
Hence, the same would be considered and relevant too
Which of these credit card features would be best for customers who think they might need to use their credit card to borrow money?
A. low fees for balance transfers
B. an annual fee that can be waived
C. a long grace period
D. no fees for cash advances
Answers
B. doesn’t make sense for the question
C. If you can have the “no fee” option (answer D), why would you choose a grace period for fees or charges? How about, no fee at all!
Answer:
D
Explanation:
took the test
Which of the following statements best explains the delta of an option? Delta is the sensitivity of the option price to a change in the price of the underlying and it is always negative for call options Delta is the sensitivity of the option price to a change in the price of the underlying and it is always positive for call options Delta is the sensitivity of the option price to a change in time Delta is the sensitivity of the option price to a change in interest rate
Answers
The correct statement that best explains the delta of an option is: "Delta is the sensitivity of the option price to a change in the price of the underlying, and it is always positive for call options."
The delta of an option is a measure of its sensitivity to a change in the price of the underlying asset. It helps investors understand how much the option's price will change in response to a change in the price of the underlying asset.
Delta is represented by a number between 0 and 1 for call options and between -1 and 0 for put options. A delta of 0.5 means that for every $1 increase in the price of the underlying asset, the option price will increase by $0.50.
For call options, a positive delta indicates that the option price will increase as the price of the underlying asset increases. This makes sense because as the price of the underlying asset rises, the call option becomes more valuable, giving the holder the right to buy the asset at a lower price and potentially profit from the price difference.
On the other hand, for put options, a negative delta indicates that the option price will decrease as the price of the underlying asset increases. This is because as the price of the underlying asset rises, the put option becomes less valuable, as the holder has the right to sell the asset at a higher price, which is less attractive.
To summarize, delta measures the sensitivity of an option's price to changes in the price of the underlying asset. It helps investors understand how much the option price will change as the price of the underlying asset moves. For call options, delta is always positive, indicating that the option price will increase as the price of the underlying asset rises.
Learn more about sensitivity from the link:
https://brainly.in/question/10624886
#SPJ11
1. Do you believe E-sports will continue to grow in the future? Why or why not?
Answers
Answer: I don’t really know but I think it will still be popular and lots of people will still play no matter what
Answer:
In terms of video games, yes. Because, everyone can play videogames, but not everyone can compete in physical sports.
Explanation:
I don't need to give an explanation since it's my opinion. So don't report this answer please...
(Table) If the toy-making firm in the table faces a market price of $20 in the short run it should:
a) produce 76 toys.
b) produce 96 toys.
c) shut down.
d) produce 40 toys
Answers
The toy-making firm in the table should be shut down when it faces a market price of $20 in the short run. Option C is correct.
A production planning period where at least one input remains fixed while the rest are subject to change is referred to as the Short run. When a business wants to achieve the target within a short duration due to the sudden or seasonal demand for a specific product then the Short run works.
An example of a short run is when a company ABC, which can produce 10 cars in a day and looks to produce more cars (15 cars per day) by using the available infrastructure due to increased demand during the season is said to be a short run. Examples of short-run costs are
Raw materials prices for raw materials.Rent for land or buildings.Wages and salaries for labor.Interest and dividends for the use of financial capital (loans and equity investments)To learn more about the short run:
https://brainly.com/question/29588843
#SPJ4
A client of yours has heard about private equity investing from some wealthy friends and asks you, the registered representative about it. This customer is age 51 and earns $160,000 per year. He is willing to assume a moderate level of risk in pursuit of higher returns. This customer has a liquid net worth of $450,000 and has a diversified equity and bond portfolio. You should tell the customer that the best way to make a private equity investment is to invest in a(n):
A. Hedge Fund
B. VC Fund
C. REIT
D. BDC
Answers
Answer: BDC
Explanation:
The customer will be informed that the best way to make a private equity investment is to invest in a BDC.
A business development company (BDC) refers to a closed-end fund whereby investments are made in firms that are developing.
Business development companies are publicly traded and gives the investors high dividend yields. BDCs are considered to be good investment due to the fact that they yield high equities.
A used car costs $5000 you drive it for 4 years. You drive 10,000 miles per year. Your car insurance is $1,200 per year. You spend $400 on maintenance. Gas costs $4 and the car gets 25 miles per gallon. What is the average cost per mile over the 4 years?
Answers
Answer:
$0.445 per mile
Explanation:
Calculation for what the average cost per mile
will be over the 4 years
First step is to calculate the Insurance cost
Insurance cost = $1,200 x 4
Insurance cost = $4,800
Second Step is to calculate the Maintenance cost
Maintenance cost = $400 x 4
Maintenance cost = $1,600
Third Step is to calculate the Total mileage
Total mileage = 10,000 miles per year x 4 years Total mileage= 40,000 miles
Fourth step is to calculate the Gas cost
Gas cost =( 1 gallon/25 miles per gallon x 40,000 miles)x $4 per gallon
Gas cost = 1,600 gallons x $4 per gallon
Gas cost=$6,400
Last step is to calculate the average cost using this formula
Average cost =Initial cost+Insurance cost+Maintenance cost +Gas cost/Total mileage
Let plug in the formula
Average cost = $5,000 + $4,800 + $1,600 + $6,400/40,000 mile
Average cost= $17,800 / 40,000 miles
Average cost = $0.445 per mile
Therefore what the average cost per mile
will be over the 4 years will be $0.445 per mile
2. Jen
net income of $800. His fixed monthly expenses consist of $150 for rent
He currently pars $80 each month for a credit card bill, and now he wants to buy a car.
What does Jesse have left in his budget for a car payment to stay within his safe debt load?
Answers
Jesse, have left in his budget for a car payment to stay within his safe debt load $0.
What is budget?
A “budget” is a plan or statement of the amount of money spent each month to pay for living expenses or for a specific purpose.
According to the budget for a car payment are:
Jen net income of $800.
$150 for rent
currently pars $80
The debt load = ?
$800 x 10% = $80
$80 - $80 = $0
$0
As a result, they have left in his budget for a car amount to stay within his safe debt load $0.
Learn more about on budget, here:
https://brainly.com/question/15683430
#SPJ1
In early January 2022, Canco completed the purchase of a suitable Sudbury property for $3,080,000. Based on appraisals, $2,480,000 was allocated to the building and $600,000 was allocated to the land. As it is not a new building, it does not qualify for the enhanced CCA rate for class 1. The class 8 equipment and furniture is replaced at a cost of $275,000. Canco's computer equipment is stored and moved to the new location. The company's taxation year ends on December 31, 2021, and it did not own any buildings or class 8 property at the end of the year. There was a problem with the vendor's documents that delayed the purchase until 2021. Required: A. On the disposition of each property, indicate the income tax consequences and the amounts that would be required to be included in the company's net income for 2021. B. Determine the income tax consequences if the company opted to defer capital gains and recapture by electing under ITA 1314) and ITA 44(1). Indicate the tax values of the replacement properties, including the ACB, capital cost, and UCC. C. Determine whether the results in Part B could be improved upon with a reallocation ellec- tion under ITA 4416). Explain your conclusion.
Answers
A reallocation election allows company to reallocate the proceeds of disposition among different classes of depreciable property to minimize the recapture of CCA.
What is a depreciable property?Depreciable property refers to assets that a business or individual acquires for use in their operations or for earning income, which lose their value over time due to wear and tear, obsolescence, or other factors. Examples of depreciable property include buildings, vehicles, machinery, equipment, furniture, and computers. The depreciation of a depreciable property is the amount by which its value decreases over time, and it is calculated based on the property's expected useful life and salvage value. Depreciation is an accounting concept that allows businesses to spread the cost of an asset over its useful life and deduct a portion of its cost as an expense each year on their tax returns. Depreciation is important for businesses as it allows them to recover the cost of their assets gradually over time and helps to ensure that their financial statements accurately reflect the decrease in value of their depreciable assets.
To learn more about depreciable property, visit:
https://brainly.com/question/30695263
#SPJ1
producers operating in oligopolistic markets generate: multiple choice question. normal profits and even losses in the short run. normal profits and even losses in the long run. only normal profits in the long run. only normal profits in the short run.
Answers
Producers operating in oligopolistic markets generate normal profits and even losses in short run. In oligopoly, a few large firms dominate market, and each firm has some market power. Due to market structure, firms are likely to engage in strategic behavior, such as price competition.
In the short run, oligopolistic firms may experience fluctuations in their profits due to price wars, changing consumer preferences, or costs of production. For example, when firms engage in price wars to gain market share, they may lower prices below their average costs, leading to losses in the short run. However, these losses can be temporary, as firms may adjust their pricing strategies or production methods to restore profitability.
In the long run, firms in an oligopolistic market may achieve normal profits due to their ability to control prices and adapt to market conditions. As the market stabilizes, firms can improve their production efficiency, invest in innovation, and engage in non-price competition, leading to normal profits in the long run.
Know more about oligopolistic markets here:
https://brainly.com/question/10922710
#SPJ11
Producers operating in oligopolistic markets can generate normal profits and even losses in the short run, but in the long run, the market outcome can be similar to a highly competitive market where firms earn zero economic profits.
Explanation:
In oligopolistic markets, producers can generate normal profits and even losses in the short run.
However, in the long run, the market outcome can be similar to that of a highly competitive market where firms earn zero economic profits.
This is because each firm in an oligopoly has an incentive to produce more and compete fiercely, leading to lower prices and potential losses for all firms.
Learn more about Oligopoly market here:https://brainly.com/question/33049236
#SPJ6
When should I file a complaint with the Better Business Bureau?
Answers
The Better Business Bureau (BBB) is an organization that helps consumers resolve complaints about businesses and promotes ethical business practices. If you have had a negative experience with a business and are not satisfied with the company's response to your complaint, you may consider filing a complaint with the Better Business Bureau.
The Better Business Bureau should be contacted when you have attempted to resolve a dispute with a business and have not received a satisfactory resolution. For example, if you have purchased a product or received a service from a company and it was not as advertised, or if the company has failed to fulfill a promise or commitment made to you, you may consider filing a complaint with the Better Business Bureau.
It is important to note that the Better Business Bureau is not a government agency and does not have the power to force businesses to resolve complaints. However, they do have a process in place to mediate disputes and help consumers resolve issues with businesses. By filing a complaint with the Better Business Bureau, you are taking advantage of a valuable resource that can help you resolve disputes with businesses in a fair and impartial manner.
Overall, the Better Business Bureau serves as a resource for consumers to resolve complaints about businesses and to promote ethical business practices. If you have had a negative experience with a business, consider filing a complaint with the Better Business Bureau to seek a resolution.
To learn more about The Better Business Bureau, visit:
https://brainly.com/question/4166921#
#SPJ11
If the Federal Reserve System follows an easy money policy, this tends to O make the U.S. economy grow more slowly in the short run. O make the dollar weaker relative to other countries' currencies. O raise interest rates in the short run. O reduce the inflation rate.
Answers
An easy money policy refers to an economic and financial approach where the central bank, such as the Federal Reserve System, increases the money supply by reducing interest rates, making borrowing cheaper and more accessible. This policy aims to stimulate economic growth by encouraging increased borrowing and investment.
The easy money policy typically leads to a weaker value of the dollar relative to other currencies.
When interest rates are lowered, borrowing becomes cheaper, which incentivizes individuals and businesses to take on more debt and invest in the economy.
As a result, the supply of money in circulation increases.
With a greater supply of dollars available, the relative value of the currency tends to decrease.
This weakening of the dollar compared to other countries' currencies is a common outcome when the Federal Reserve implements an easy money policy.
Read more about Federal Reserve System
https://brainly.com/question/32374280
#SPJ11