Answer:
Key ideas:
- A single entity controls the flow of the product.
- Possesses the power to limit prices.
- Will have some influence in politics.
- Difficult for new companies to enter the market.
Explanation:
Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.
When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.
Answer:
The answer is: $0
Explanation:
Government entities have to record grant revenue during the period that they occur. The city received notice of this grant last year, so they recorded the grant revenue in last year's financial statements. If they recognize any grant revenue this year, it must come from a new grant.
Answer:
Option D is correct
Expected rate of return = 18.6%
Explanation:
The expected rate of return is the proportion of average investment that is earned as income . It is calculated as follows:
Rate of return on investment = average return / Average investment
Average investment = (Initial cost + salvage value)/ 2
Average investment = 89,000 +14,000/ 2= 51500
Net income = $9,600
Expected rate of return = 9,600/51,500× 100
= 18.6%
Answer: $50,000
Explanation:
From the question, we are informed that a machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.
The amount that should be reported as a source of cash under cash flows from investing activities will be $50,000. It should be noted that only cash effects of transaction has to be added to the cash flow statement.