Public goods are typically provided by the state because they possess two key characteristics: non-excludability and non-rivalry. Non-excludability means that once the good is provided, it is difficult to exclude anyone from benefiting from it. Non-rivalry means that one person's use of the good does not diminish its availability for others.
Public goods are underprovided in the free market due to the free-rider problem. This occurs when individuals can benefit from the public good without contributing to its provision. Since people have no incentive to pay for something they can enjoy for free, private businesses may not have the motivation to produce public goods.
Therefore, state provision of public goods is necessary to ensure their provision and availability to everyone in society. Governments can use taxation and public funding to finance the production and maintenance of public goods, ensuring that they are accessible to all members of society.
Answer:
less than; to use the services of shared activities
Explanation:
In the case when the service cost arise from the shared activity should be less than the comparable service cost that provided by an outside supplier so here the general manager could have the incentive with respect to the services that are used for the shared activities
Therefore as per the given situation, the above should be the answer
Answer:
false
Explanation:
I hope this helps anyone! :)
Answer:
the requirements are missing, so I looked for them on similar questions. Journal entries need to be recorded regarding all the transactions with Baker Co.:
May 5, 2013, 900 units sold to Baker Co., credit terms 2/10 n/60
Dr Accounts receivable 13,500
Cr Sales revenue 13,500
Dr Cost of goods sold 9,900
Cr Inventory 9,900
a. May 7, 2013, Baker returns 315 units
Dr Sales returns and allowances 4,725
Cr Accounts receivable 4,725
Dr Inventory 3,465
Cr Cost of goods sold 3,465
b. May 8, 2013, sales allowance given to Baker to compensate damaged units
Dr Sales returns and allowances 525
Cr Accounts receivable 525
c. May 15, 2013, sales allowance given to Baker to compensate wrong color of 14 units
Dr Sales returns and allowances 110
Cr Accounts receivable 110
May 15, 2013, Baker returns 36 units
Dr Sales returns and allowances 540
Cr Accounts receivable 540
Dr Inventory 396
Cr Cost of goods sold 396
b. Statement of company assets
c. Statement of company liquidity
d. Statement of owner’s equity
Answer:
D) Earnings before deductions for interest, depreciation, income taxes, and amortization (EBIDTA)
Explanation:
The earnings before interest, taxes, depreciation, and amortization (EBITDA) is used to compare different projects' profitability since it doesn't consider financial interest, taxes and depreciation. It also gives shareholders and potential investors a vision of the operating performance of the business.
When you are considering investing in a new or existing project, you don't have to consider the source of the funds for the project, that is why cash flow calculations don't account for interest payments and depreciation is just considered for taxation purposes. The same applies for the EBITDA calculation.