Why is profit necessary for the economy to work effectively? What benefits might consumers gain when a company makes a profit?

In The Wealth of Nations, Adam Smith discussed what has come to be known as the "diamond and water paradox" "Nothing is more useful than water: but it will purchase scarce anything; scarce anything can be had in exchange for it.

1. Two methods of accounting for uncollectible accounts are the a. direct write-off method and the allowance method b. allowance method and the accrual method c. allowance method and the net realizable method d.

Run Like the Wind sells ceiling fans. Target profit for the year is $470,000. If each fan's contribution margin is $32 and fixed costs total $222,640, the number of fans required to meet the company's goal is:a. 14,688 b. 6,958 c. 21,645 d. 7,730

How does critical thinking relate to peer assessment

Cheryl adams is having trouble defining her target market for the bookstore she's opening in her town, which is home to a small college, a retirement community, and a year-round tourist industry.

You are planning your retirement in 10 years. You currently have $162,000 in a bond account and $602,000 in a stock account. You plan to add $7,800 per year at the end of each of the next 10 years to your bond account.

A letter of credit: a. Ensures a company that funds will be available when needed b. Is analogous to a credit card that companies can draw on as needed c. Is a representation that a company has a high credit rating d.

In a business organization, the splitting of management and ownership into two distinct functions is an example of a (n)

Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money.

Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $500 annual fee plus $10 per tax return for a license to use Mega Tax software.