if you are given an amount to start your business, what items will you considered and why?
Answers
If I were given an amount to start my business, there are several crucial items I would consider investing in. Here are the key items Market Research and Analysis, Product/Service Development, Marketing and Advertising, Infrastructure and Equipment, Human Resources, Legal and Regulatory Compliance, Contingency Fund.
Market Research and Analysis: Allocating funds for thorough market research and analysis is essential. It helps identify target customers, understand competition, and determine market trends, ensuring informed decision-making and a solid business strategy.
Product/Service Development: Investing in product or service development is crucial to create a high-quality offering that meets customer needs. This includes research and development, prototyping, and testing to refine the product/service before launch.
Marketing and Advertising: A portion of the funds should be dedicated to marketing and advertising efforts. This may include digital marketing campaigns, social media advertising, search engine optimization, and other promotional activities to create brand awareness and attract customers.
Infrastructure and Equipment: Setting up a reliable infrastructure and acquiring necessary equipment are vital. This includes office space, technology infrastructure, manufacturing equipment, or software tools that facilitate efficient operations.
Human Resources: Hiring the right talent is critical for the success of any business. Allocating funds for recruitment, training, and salaries is important to build a skilled team that can execute the business plan effectively.
Legal and Regulatory Compliance: Ensuring compliance with legal and regulatory requirements is crucial. Allocating funds for legal services and licenses/permits will help navigate legal complexities and avoid potential issues in the future.
Contingency Fund: It's prudent to allocate a portion of the funds for unexpected expenses or emergencies. Having a contingency fund provides financial security and allows the business to navigate unforeseen circumstances without compromising operations.
By investing in these areas, I can lay a strong foundation for my business, ensuring a well-researched strategy, quality product/service, effective marketing, efficient operations, compliance with regulations, and the ability to handle unforeseen challenges.
For more such questions on business
https://brainly.com/question/24553900
#SPJ8
Related Questions
according to the penetration strategy, an entrepreneur tries to penetrate his or her firm's product or market further by _____.
Answers
According to the penetration strategy, an entrepreneur tries to penetrate his or her firm's product or market further by adjusting the price of the product. Penetration pricing strategy involves setting a lower price for the product than the competition to draw in consumers and acquire a larger market share.The goal of penetration pricing is to attract customers and gain market share quickly.
The product's price is deliberately set low, with the expectation that revenue will be generated by increased sales volume rather than by the price per unit.Market penetration pricing is a method of setting low prices to break into a new market or increase market share. It is most commonly used in situations where there is little or no competition, where the product is easily substitutable,
and where the cost of producing additional units is minimal. Additionally, the pricing strategy provides the company with information about consumers' willingness to pay for the product.The goal of market penetration pricing is to gain market share quickly by drawing in consumers who might otherwise be hesitant to try a new product or who might have been loyal to a competitor's brand in the past.
To know more about penetration visit:
https://brainly.com/question/29829511
#SPJ11
Brownsville Novelty Store prepared the following budget information for the month of May: Sales are budgeted at $360,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. Inventory was $84,000 on April 30; an inventory increase of $12,000 is planned for May 31. All inventory is marked to sell at cost plus 50 percent. Estimated cash disbursements for selling and administrative expenses for the month are $48,000. Depreciation for May is projected at $6,000. Brownsville's budgeted bad debts expense for May is:
Answers
Answer: $10800
Explanation:
Brownsville's budgeted bad debts expense for May will be calculated by multiplying the sales budgeted for May by the percentage allocated to the provision for bad debt. This will be:
= $360,000 × 3%
= $360,000 × 3/100
= $360,000 × 0.03
= $10800
Brownsville's budgeted bad debts expense for May is $10800
2. What does the word cost mean in the context, "understanding their costs and
income, budgeting to ensure all their expenses are covered is a financially
tsresponsible behavior"?
Answers
Answer:
Explanation: A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
The amount of money that a business had to spend on the production of its goods or services is known as the cost.
How does financial planning use budgeting?
The method of planning a company's earnings and expenses over a specific time period is known as financial budgeting. The management's financial plans are outlined in budgets.
The cost of a business's products or services is the sum of money that was required to produce them. Among other things, this entails allocating financial means and figuring out how much cash is available to spend.
Therefore, A financial budget is one that is concerned with the balance sheet of the business, which also includes the cash budget.
Learn more about the financial budget from the given link.
https://brainly.com/question/28255304
#SPJ1
Phillipe has two job offers as given below and really has no preference for either company. Compare the total compensations for the job offers and explain which job you think Phillipe should accept and why. Company A Gross pay $62,000 Medical insurance $3,400 Paid time off $8,000 Retirement $2,700 Job expenses $800 Company B Gross pay $60,000 25% of gross pay in employee benefits
Answers
Answer:
Explanation:
He should accept job offer #1 bc it pays more and has more benefits.
which of the following identifies the goods or services of a specific business, person, or organization?
Answers
The term that helps in identification of goods as regards this question is B: Trademark.
A trademark can be regarded as an intellectual property, which helps in offering of protection for a brand.It identity the source where the goods/service comes from, and distinguish it from someone else business.Therefore, option B is correct.
CHECK THE COMPLETE QUESTION;
Which of the following identifies the goods or services of a
specific business, person, or organization?
Trademark
License
Fair use designation
Copyright
Learn more at:
https://brainly.com/question/19534317?referrer=searchResults
Deductons and credits can blank what you own each year
Answers
Deductions and credits can significantly impact what you owe each year in terms of taxes.
Deductions are expenses that can be subtracted from your taxable income, thereby reducing the amount of income that is subject to taxation. Common deductions include mortgage interest, charitable donations, and business expenses. Credits, on the other hand, are dollar-for-dollar reductions in the amount of taxes owed. This means that if you have a tax credit of $1,000, for example, your tax liability will be reduced by $1,000. Common tax credits include the Child Tax Credit, Earned Income Tax Credit, and the American Opportunity Tax Credit for education expenses. By taking advantage of deductions and credits, you can significantly reduce your tax liability and increase your tax refund, which can be used to pay off debt, save for retirement, or invest in your future. It is important to work with a tax professional or use tax software to ensure that you are taking advantage of all the deductions and credits available to you.
for more questions on credits
https://brainly.com/question/13964348
#SPJ11
you are the administrator for a small company. you need to create a new group for users in the sales department. you need to name the group sales.
Answers
You need to name the group sales as administrator as groupadd sales.
Who is an administrator?In some Commonwealth nations' constitutional practices, a person who performs duties akin to those of a governor or governor-general is referred to as an administrator (administrator of the government or officer managing the government). A high-ranking civilian official in the American federal government is referred to as an administrator in this country. An administrator is often a sub-cabinet person who is chosen by the US President with the US Senate's approval to lead a particular US government department. While some large agencies are stand-alone organizations, administrators frequently oversee those that are headquartered within specific cabinet departments, such as the Research and Innovative Technology Administration under the United States Department of Transportation (e.g., the United States Environmental Protection Agency).
To learn more about administrator, visit:
https://brainly.com/question/29384935
#SPJ4
_____________ career cluster involves planning, organizing, directing, performing, and evaluating business functions essential to effective and productive business operations.
Answers
Answer:
The business, Management, and Administration Career.
Explanation:
Sorry If I'm wrong.
The business, Management, and Administration career cluster involve planning, organizing, directing, performing, and evaluating business functions essential to effective and productive business operations.
What is the purpose of Business Management and Administration?Running daily operations is referred to as administration. However, taking charge of something is the definition of management. The day-to-day operations of the company are managed by a business administrator, while the business manager focuses more on overall leadership. In a small business, one individual can handle both tasks.
Planning, organizing, directing, and evaluating business functions—essential to effective and profitable business operations—relate to careers in the Business Management and Administration cluster. Organizations of all kinds require careers in leadership, management, and support functions to function effectively.
Learn more about Business Management and Administration here:
https://brainly.com/question/18370221
#SPJ2
other than operating profit, there are three main sources of external financing.
true
false
Answers
There are three main sources of external financing: equity, debt, and venture capital. The given statement is True.
Equity is the most common form of external financing and is the sale of a portion of the company’s ownership to investors in exchange for cash. Debt is the borrowing of a sum of money from a lender, usually with a fixed repayment schedule and interest rate.
Venture capital is a form of financing from an investor, usually a large financial institution, that provides capital to companies in exchange for an equity stake. Venture capital is most often used for startups to help them grow and scale.
All three of these sources of external financing can be used to expand a company’s operations, invest in new initiatives, hire new staff, and more.
To learn more about Venture capital visit:
https://brainly.com/question/18776651
#SPJ4
What is the purpose of a 1098 tax form? A. to report interest income from bank accounts B. to report dividends or capital gains from stock investments C. to report federal income taxes withheld by an employer D. to claim qualified expenses such as deductions or credits E. to correct mistakes on an already filed tax return
Answers
A. The purpose of a 1098 tax form is to report interest income from sources such as mortgages or student loans.
The 1098 tax form is used to report the amount of interest paid on a mortgage, student loan, or other qualifying debt during the tax year. The form is provided by the lender and must be included when filing taxes. The information on the 1098 form is used to calculate whether the taxpayer can claim a deduction for the interest paid on the loan. This deduction can help to reduce taxable income, which can result in a lower tax bill. It is important for taxpayers to ensure that they receive the appropriate 1098 forms from their lenders in order to claim any deductions they are entitled to.
To know more about Deduction , click here https://brainly.com/question/29756791
#SPJ11
Which plan would most likely NOT help you reach the savings needed for college?
Answers
D. Start saving about two months before college begins
1. What are the costs incurred by a firm when it issues new securities through an investment bank, in the traditional firm commitment underwriting? What does it mean to say that a firm has "left money on the table"?
2. Suppose you bought 100 shares of Amazon at $3000 and in one year the price went to $3600. If you bought the shares on 50% margin, what was your one-year percent return? If you bought the shares for all cash, what was your one-year percent return? (Ignore commissions, interest, dividends, and taxes; and show your work). What is the leverage factor between the two results?
Answers
1. The costs incurred by a firm when it issues new securities through an investment bank, in the traditional firm commitment underwriting
The costs incurred by a firm when it issues new securities through an investment bank, in the traditional firm commitment underwriting include underwriter's spread, any concessions given to investors, and the cost of preparing a registration statement.
When it comes to a firm commitment underwriting, the underwriter acts as a dealer and buys the whole problem outright and then sells the securities to investors. The risks and responsibilities associated with selling securities are transferred from the issuer to the underwriter. A firm has "left money on the table" when the underwriter sets the offering price too low.
2. One-year percent return if you bought the shares on 50% margin The price of the share went up by $600 ($3600-$3000), so the profit would be $600 per share.
Since the investor bought the shares on 50% margin, they borrowed 50% of the purchase price, or $1500 per share. This means that the investor paid $1500 cash and borrowed $1500. The return can be calculated as follows
Profit / Initial investment = $600 / ($1500 / 2) = 0.8 or 80% return.
Leverage factor = 2.5 (initial investment/cash paid)One-year percent return if you bought the shares for all cash
In this situation, the initial investment is $3000 and the profit is still $600, resulting in a one-year percent return of Profit / Initial investment = $600 / $3000 = 0.2 or 20% return. Leverage factor = 1 (initial investment/cash paid)
To know more about interest visit:
https://brainly.com/question/25720319
#SPJ11
assume the reserve ratio is 25 percent. commercial banks hold no excess reserves, and the federal reserve banks as a result of this, what would be the maximum change to the buys 54 million of u.s. securities from the public. money supply? decrease money supply
Answers
The main answer to your question is that the maximum change to the money supply would be a decrease.
When the Federal Reserve buys securities from the public, it increases the reserves of commercial banks. However, in this scenario, commercial banks hold no excess reserves, meaning that any increase in reserves resulting from the purchase of securities by the Federal Reserve would have to be met with a corresponding decrease in loans or other assets held by the banks.
So, the maximum change in the money supply when the Federal Reserve buys 54 million of U.S. securities from the public, assuming a 25 percent reserve ratio and no excess reserves held by commercial banks, would be an increase of 216 million dollars.
To know more about Supply visit:-
https://brainly.com/question/29859058
#SPJ11
Thomas Company has a sales budget for next month of $1,000,000. Cost of goods sold is expected to be 25 percent of sales. All goods are paid for in the month following purchase. The beginning inventory of merchandise is $50,000, and an ending inventory of $64,000 is desired. Beginning accounts payable is $160,000.
For Thomas Company, the ending accounts payable should be:
A. $341,000
B. $356,000
C. $314,000
D. $414,000
Answers
Answer:
$264,000
Explanation:
Calculation for the ending accounts payable
First step is to find the cost of goods sold
Using this formula
Cost of goods sold=Sales budget * Sales percentage
Let plug in the formula
Cost of goods sold=$1,000,000*25%
Cost of goods sold=250,000
Second step is to calculate for the ending accounts payable
Using this formula
Ending accounts payable=Ending inventory + Cost of goods sold - Beginning inventory
Let plug in the formula
Ending accounts payable= $64,000 + $250,000 - $50,000
Ending accounts payable= $264,000
Therefore the Ending accounts payable will be $264,000
David Harbert recently started a business. During the first few days of operation, Mr. Harbert transferred cash from his personal account into a business account for a company he named Harbert Enterprises. Mr. Harbert’s brother, George, invested cash in Harbert Enterprises for which he received a 25% ownership interest in the company. Harbert Enterprises borrowed cash from First Federal Bank. Harbert Enterprises paid cash to purchase a building from City Properties, Inc. How many reporting entities are mentioned in this scenario
Answers
Answer:
5
Explanation:
A reporting entity is any entity in men or organizations that depends on the financial report produced by an organization for an understanding of the financial performances and position for the purpose of decision making. This can be investors and other stakeholders in the business.
In the scenario given , the relative parties that will rely of the financial report are
David Herbert as the Entrepreneur , Herbert Enterprises which prepare the report ,George , Herbert's brother an investor , First federal bank , a loan provider and City properties.
ECONOMICS EVERFI QUESTION When comparison shopping, all of these hint at a good deal EXCEPT_____________________. lower-priced models offer more features. there is a coupon available for additional percentage off the price. the sale price is the cheapest available. there are more positive customer reviews than negative reviews.
Answers
Answer:
the sale price is the cheapest available.
Explanation:
Comparison shopping is the practice or nature of shopping where one compares the price of an item different sources which the individual wishes to purchase. This is done in advance before the actual purchase or shopping. It is done to achieve the best deal in price.
Comparison shopping is ideal or beneficial when buying items which can be easily researched through some advertisements. When doing comparison shopping it is not a good deal to always go for the lowest price available.
Thus, it is not considered a good deal when you go for the sale price that is the cheapest available.
The sentence which best complete the phrase is lower-priced models offer more features (option A)
When we want to buy an object it is advisable to find out its value in different places to find the cheapest one. It is also advisable to look for discount coupons or promotions to save us a little money.
Another activity that we can carry out is to consult on the internet the review of other buyers about the product to make sure that its operation is optimal.
Generally, the cheapest models are the ones that offer the fewest features. For example, if I want to buy a bicycle, its price can vary based on different characteristics such as the material of the frame (lighter is worth more) or the number of speeds (more speeds are worth more).
According to the above, the correct answer is option A. because it mentions an aspect related to low-value objects.
Learn more in: https://brainly.com/question/3610890
Gordon worked part-time last year from June through December. It’s now January and he’s preparing to file his taxes. Briefly explain what he needs to do -- and when -- in order to file his taxes.
Answers
Since Gordon worked part-time last year from June through December. The way to file his taxes are:
Gather your tax documents in Step 1Step 2: Decide whether to itemize or use the standard deductionSelect a filing status in Step 3 and file your taxes in Step 4.Step 5: Prepare Yourself for Next YearHow can a person file my taxes the simplest way?IRS Free File enables you to complete and submit your federal income tax return online utilizing Free File Fillable Forms, IRS Partner Sites, or assisted tax preparation. It's secure, simple, and free for you to file a federal return.
Therefore, To file returns online, visit the Income Tax Department website at www.incometaxindiaefiling.gov.in. The user ID for registration will be your Permanent Account Number (PAN). Go to the relevant assessment year's e-filing section under "Download" and select the appropriate Income Tax Return (ITR) form.
Learn more about Filling taxes from
https://brainly.com/question/25783927
#SPJ1
Making good decisions is what market research is all about. False True
Answers
Answer:
True
.............................................
What are the 3 components of a claim?
Answers
There are three elements that you must prove in order for your claim to be successful: the defendant owed you a duty of care, the defendant breached that duty, you suffered an injury or loss as a result.
Define loss?A loss in financial accounting is a decline in net income that occurs outside of the regular course of business.
Losses can be caused by a variety of actions, including the selling of an asset for less than its carrying value, asset write-downs, or litigation losses.
When you lose money operating your business, you are spending more than you are earning.
Businesses sometimes experience temporary losses when they first launch or during periods of expansion. This is OK if you have enough cash on hand to cover operating expenses while waiting for a boost in revenue.
The income statement's bottom line, following all the line items for revenues and expenses, shows the net loss.
To learn more about loss visit:
brainly.com/question/21637154
#SPJ4
An Information Technology worker who follows the Programming and Software development pathway most likely enjoys
Answers
An IT professional who pursues a career in programming and software development likely appreciates problem-solving, coding, programming, and ongoing education.
Programmers and software developers enjoy the challenge of solving complex problems and puzzles. They delight in breaking down complex issues into smaller, more manageable pieces and thrive on developing original solutions to technology issues.
Programming languages and coding are frequently hobbies of those who work in this field. They enjoy writing and debugging code, creating software systems, and creating efficient algorithms.
Learn more about Software programming here:
brainly.com/question/1576944
#SPJ1
A home was appraised for tax purposes at 70 percent of its $150,000 purchase price. The mill rate is 28.6. What are the annual taxes?
Answers
Answer:
$3,003
Explanation:
The computation of the annual taxes is shown below:
= (Given percentage × purchase price × mill rate) ÷ (1,000)
= (0.70 × $150,000 × 28.6) ÷ (1,000)
= (3,003,000) ÷ (1,000)
= $3,003
Hence, the annual taxes is $3,003
We simply applied the above formula so that the annual taxes could come and the same is to be considered
True or false? A value hypothesis explains the reasons why a customer may choose not to use a product.
Answers
A value hypothesis explaining the reasons why a customer may choose not to use a product is a true statement.
Who is a customer?A customer is a person who purchases goods or uses services from a person, business, or organization. Doing so generally results in him accepting payment. The business typically tries to get the customer to acquire its products or services.
The individual who pays the amount of money to purchase or utilize the services. The customer makes the decision regarding his needs and wants.
The hypothesis is assumed when the data is being achieved after the customer has used the commodity or the services. This leads to the business knowing the reviews.
The value hypothesis examines how much worth any offering or commodity offers clients and, more crucially if they are inclined to pay for same.
Learn more about customer, here:
https://brainly.com/question/14530604
#SPJ2
1. Should a cover letter be a lengthy document?
2. What should be the “tone” of an informal thank you letter?
Answers
1. It actually depends; but usually it's like a three paragraph essay
2. The tone of an informal thank you letter is something like saying 'thank you so much' and a compliment sentence, like 'You are the best!'
Hope this helps! Have a great day!
Investment: Securities 1.7. Choose any form of investment and make a presentation in a form of a power Point/ cue cards. Submit your PowerPoint presentation/ Q- cards as evidence to your teacher. Use the following factors to consider when making investment decisions to explain the impact of the form of investment of your choice. S 1.7.1 Liquidity 1.7.2 Risk
Answers
Liquidity and risk are two crucial aspects to take into account when making investment decisions.
The ease with which an investment can be changed into cash without suffering a large loss in value is referred to as liquidity. The liquidity of various investment types varies in various ways.
The uncertainty and possibility of loss connected to investment are referred to as risk. Risk levels are different for various investment vehicles.
The potential for bigger profits on investments with a higher level of risk is also accompanied by a greater likelihood of loss. Although they could offer more consistency, lower-risk investments may also produce lower returns.
Learn more about investment, here:
https://brainly.com/question/15105766
#SPJ1
What do you think are the most important components of budgeting? Why?
Answers
Answer:
I would have to say figuring out ur cash flow where its going after u earn it and making sure u keep track of ur savings
Explanation:
Dell found that it had to suspend its direct model in India for a temporary period because it needed local intermediaries to help develop both a base of business and acceptable levels of customer awareness and sophistication. This is an example of. Select one:
a. diversification.
b. an organization operating in a flat world.
c. international strategy accommodating local environments
d. an organization increasing its horizontal scope.
e. a cost-leadership strategy
Answers
c. This situation exemplifies an international strategy accommodating local environments.
International strategy accommodating local environments. In this case, Dell recognized the need to adapt its business model to the specific conditions and requirements of the Indian market. The suspension of its direct model indicates that Dell acknowledged the importance of incorporating local intermediaries to navigate the Indian business landscape successfully.
When operating in foreign markets, companies often encounter unique challenges and cultural differences that require adjustments to their strategies. In this scenario, Dell recognized that relying solely on its direct model would not be effective in India. Instead, the company decided to leverage local intermediaries to develop a customer base and create awareness and understanding of its products and services.
This approach demonstrates Dell's commitment to adapting its operations and strategies to the local environment, recognizing the significance of customer awareness, sophistication, and building relationships with local partners. By accommodating the specific needs and preferences of the Indian market, Dell aimed to establish a strong foundation for its business and enhance its chances of success in the region.
Learn more about business model here: https://brainly.com/question/32805873
#SPJ11
When janelle decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but when she visited her local best buy, she limited her search to only those brands she would consider buying. the brands available at best buy represent janelle's set.
Answers
Situational influences are transient circumstances that have an impact on consumer behavior.They include tangible elements like a store's layout, buying areas, music, lighting, and even odors.Businesses work to improve the physical conditions that shoppers encounter.
What are the situational factors that could alter the consumer decision making at the time of purchase?The likelihood that someone will go through all six stages of the purchasing process is probably limited to specific circumstances, such as when purchasing a thing for the first time or when purchasing expensive, durable, infrequently used items.Complex decision-making is what is meant when this occurs. Which of the aforementioned purchases would consumers be most likely to make with limited problem-solving.A regular coffee drinker's typical purchase is generally coffee to go.But problem solving skills will likely be reduced as a result of college courses. Physical surroundings, social surroundings, temporal perspective, task description, and antecedent state are the five components that make up situational factors. There are four different forms of consumer behavior: complex buying behavior, dissonance reduction, variety seeking, and habitual buying behavior. Consumer decision-making can appear complicated, but all buyers follow the same fundamental stages to choose the goods and services that will best meet their needs.Whether purchasing something, especially when it's something substantial like a car, consider your own thought process. When acquiring high-involvement products, buyers don't exhibit routine response behavior.Instead, they participate in what is known as prolonged problem solving, spending a lot of time weighing various factors such product features, costs, and warranties.To learn more about decision making refer
https://brainly.com/question/1249089
#SPJ4
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
If the company estimates 4% of receivables to be uncollectible, the bad debt expense for 2022 would be: group of answer choices $4,720 $720 $4,000 $160 $4,800
Answers
If the Company estimates 4% of receivables to be uncollectible, the bad debt expense for 2022 would be $ 720 option B.
When a receivable is no longer recoverable as a result of a customer's inability to pay an existing debt owing to bankruptcy or other financial issues, a bad debt charge is recorded. Businesses that offer credit to their clients record bad debts as an allowance for doubtful accounts, sometimes referred to as a provision for credit losses, on their balance sheet.
A corporation records a credit to revenue and a debit to an account receivable when it completes a credit sale. There is no assurance that the business will get the money, which is the issue with this accounts receivable balance. A corporation can be entitled to money from a credit sale but never actually get it for any number of reasons.
Particulars Amount
Beginning balance of allowance for doubtful accounts $ 5,000
Less: Accounts written off $ -2,000
Add: Accounts reinstated $ 1,000
Unadjusted balance of allowance for doubtful accounts $ 4,000
Ending balance of allowance for doubtful accounts $ 4720
Less: Unadjusted balance of allowance for doubtful accounts $ -4000
Bad debts expense $720
Hence, the correct option is B $720.
Learn more about Bad debt:
https://brainly.com/question/24871617
#SPJ4
Complete question:
Use the following information to answer the next 3 questions: On January 1, 2022, a company's Accounts Receivable balance was $100,000, and the balance in the Allowance for Doubtful Accounts was a credit balance of $5,000. During 2022, the company recorded the following transactions: Credit Sales $130,000
Collections from customers $110,000
Accounts written-off $2.000
Collections on accounts previously written off $1,000
If the Company estimates 4% of receivables to be uncollectible, the bad debt expense for 2022 would be
A. $4,720 B. $720 C. $4,000 D. $160 E. $4,800
in the short run, a profit-maximizing firm should operate even when it is losing money, so long as the market –
Answers
In the short run, a profit-maximizing firm should operate even when it is losing money, so long as the market price is higher than the average variable cost (AVC) of production.
This is because the firm can still cover its variable costs and contribute towards its fixed costs. By continuing to operate, the firm can also maintain its market share and avoid potential long-term losses from shutting down and then having to re-enter the market later on.
However, if the market price falls below the firm's AVC, it should shut down in the short run to minimize its losses.
Hence, the right answer is the price is higher than the average variable cost (AVC) of production.
Read more about Market price at https://brainly.com/question/31964955
#SPJ11