Answer:
B. Marginal social benefit is greater than marginal private benefit.
Explanation:
When consumption of a good generates a positive externality, the statement is true at the market equilibrium is marginal social benefit is greater than marginal private benefit. As we hold a perception of this permanence concerning some positive externality signifies that marginal social benefit remains higher aside from marginal private benefit. Ended consuming simply quantity Q, marginal social benefit is a higher marginal social cost, including higher of the good, should be absorbed.
In a situation of positive externality, the marginal social benefit of a good or service exceeds the marginal private benefit at the market equilibrium, leading to societal underconsumption of the good or service.
When consumption of a good generates a positive externality, the correct statement would be that the marginal social benefit is greater than the marginal private benefit. A positive externality occurs whenever the consumption of a good or a service by an individual has a beneficial impact on others who are not directly involved in the transaction.
The marginal private benefit essentially represents the individual user's private gain from consuming an additional unit of a good or service. On the other hand, the marginal social benefit reflects the total benefit to society, considering not only the individual's private benefit but also the positive impact on others.
Thus in the case of a positive externality, the marginal social benefit exceeds the marginal private benefit at the market equilibrium, effectively leading to an underconsumption of the good from a societal perspective, because individuals account only for their private benefit and not for the external benefits generated by their consumption.
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Answer:
B.Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.
Explanation:
As when common stock is issued, it provides cash to the company, for any kind of investments, or expense to be made, for running the business.
Financing activities are those which arrange monetary assets generally cash for the company, issue of securities, issue of bonds, borrowings as loans or note payable.
Thus, the statement B is correct.
Further dividends are provided after tax, and are distribution from net income, but not shown under that.
Providing services on account will provide revenue and net income will increase.
Purchasing of any equipment is investing as it will create an asset for the company.
Answer:
A. Newspapers
D. Textiles
Explanation:
Market oriented location is the selection of business location based on customers. The market for business will be selected where there are customers already present. This is possible where there is presence of some competitor in market and business chooses to open its store just beside him so that competitor customers may visit our store too.
Answer:
The use if the direct chain of command affords delegation of authority in an easily understandable way, such that needed decisions on actions are more quickly taken to save costs due to delay and lack of cohesion.
Direct chain of command affords employees to work in areas they are proficient with which builds improved competence and skill within the workforce
The chain of command organizational structure is a logical delegation of authority which facilitates collaborative efforts with internal and external bodies
Explanation:
The journal entries for Gomez Corporation for January 31 and March 9 are being prepared below. This would record the partial recovery of the previously written-off amount.
Journal Entries in the books of Gomez Corporation
(as on January 31)
For January 31, when Gomez Corporation writes off the $1,600 account of customer C. Green using the allowance method, the journal entry would be:
1. Debit Allowance for Doubtful Accounts: $1,600
2. Credit Accounts Receivable - C. Green: $1,600
Journal Entries in the books of Gomez Corporation
(as on March 9)
The journal entries for March 9, when Gomez Corporation receives a $1,100 payment from C. Green and no additional money is expected, are as follows:
1. Debit Cash: $1,100
2. Credit Allowance for Doubtful Accounts: $1,100
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