When the social costs of consuming a good are higher than the private costs, there is said to be a negative externality. As an individual consuming fuel is polluting the environment for all, then it can be seen that fuel produces a negative externality. (The diagram to the left will show this). This shows that without any government intervention, the market equilibrium would consume Qp at price Pp. This is higher than the social equilibrium, Qs, meaning there has been a welfare loss to society of (shade triangle).
What information can you gain from the business which might help you make your decision? First, you decide to look at the income statement (proﬁt and loss account). In this question you are required to: (a) Explain the purpose of an income statement (proﬁt and loss account) and comment on the usefulness of the income statement in assessing the performance of a business like SportswearKit. (10 marks). The purpose of an 'Income Statement' or another given term 'Profit and loss account' is 'to report on certain financial aspects of transactions that have taken place during an accounting period' (The Open University Book 3, An Introduction to Accounting and Finance in Business', book 3, 3.2, p.39).
How do you explain the use of time value of money (TVM) in business? What considerations are made when calculating TVM? How may you use TVM to create your own, or someone else’s, retirement plan? Answer The time value of money (TVM) is used in businesses for the purpose of finding out the suitability of an investment and understanding returns in the context of opportunity costs. It helps us to understand the relationship between the usage of money and the value of returns it provides from a particular venture or avenue based on the time it would take for providing the return and the future value of the return.
Which term refers to inaccurate or distorted demand information created in the supply chain? a) Battle axe effect b) Cobra effect c) Bullwhip effect d) Lasso effect e) Whirlpool effect Ans: c Section: The Bullwhip Effect Level: easy 3. Insourcing incurs a fixed cost of $1000 and a $5 variable cost. Outsourcing incurs a fixed cost of $2000 and a $2 variable cost. What is the indifference point?
The Depression of the 1930s and its impact on Liverpool. According to McIntyre-Brown and Woodland (2001), Liverpool’s gateway to the New World was well and truly closed in 1930. They report that the Wall Street Crash of 1929 had created economic depression throughout the United States of America and in a state of trepidation the USA had demanded a return of all their financial loans to other countries. The USA also imposed limitations on the import of foreign goods which to the great sea port of Liverpool would have catastrophic repercussions. Belchem (2006) explains, despite having a national implication, the impact of the depression of the 1930’s was focused primarily on Northern Ireland, Scotland, Wales and Northern England.
Hand In Date Monday 3rd December 2012 Assignment checklist: Tick if complete 1 Your report should describe how your private sector business could be affected by at least two economic environments. You must relate the impact to your private sector organisations. You may select one of the following: 1. For example you may refer to your knowledge and understanding of the business cycle and explain how changes in the business cycle have affected your chosen business. For example the impact on the business during a recession and during high levels of growth.
CPA Report University of Phoenix ACC/545: Financial Reporting CPA Report When properly documenting financial findings, a CPA report can prove very useful. In this paper I will discuss the methodology used to determine deferred taxes, the procedures for reporting accounting changes and error corrections, and the rationale behind establishing the subsidiary as a corporation. I will also cover the professional responsibilities of a CPA and the difference between a review and an audit. The methodology used to determine deferred taxes Two methods to determine deferred taxes exist, the deferral method and the liability method. The objective of the deferral method is to match tax expense with pretax book income.
You want to know how your product or service will stack up against your competition as well as what the demands of the market are or will be. With that being said, your supply and demand which has a significant impact on the organizational performance is reviewed. Per the textbook, supply is the number of products (goods and/or services) that businesses are willing to sell at different prices at a specific time and demand is the number of goods and services that consumers are willing to buy at different prices at a specific time (Hellriegel & Slocum, 2009,
A rise in oil prices would also directly affect business performance as oil is a cost of production to firms, especially to those which produce oil related products, hence reducing profits and limiting the amount of money that firms can reinvest. All of this would result in a fall in real output from Y1 to Y2, representing a fall in economic growth. One could say that a fivefold increase in
The Securities and Exchange Commission is responsible for protecting against the unethical practice of insider trading. One popular example of insider trading is when a CEO of a company sells stock after having knowing that the company will lose a major contract which can have a negative effect on the stock price. 3. Explain how the tax code allows depreciation to contribute to cash flow. (25 points) The Federal Tax Code allows depreciation to