Question about operating of a business

Reference no: EM1370660

1. Assume you decide to open a copy store. You rent store space (signing a one-year lease to do so), and you take out a loan at a local bank and use the money to buy 10 copiers. Six months later, a large chain opens a copy store two blocks away from yours. As a result, the revenue you receive from your copy store, while sufficient to cover the wages of your employees and the costs of paper and utilities, doesn't cover all your rent and the interest and repayment costs on the loan you took out to purchase the copiers. Should you continue operating your business?

2. When the DuPont chemical company first attempted to enter the paint business, it was not successful. According to a company report, in one year it "lost nearly $500,000 in actual cash in addition to an expected return on investment of nearly $500,000, which made a total loss of income to the company of nearly a million." Why did this report include as part of the company's loss the amount it had expected to earn - but didn't - on its investment in manufacturing paint?

Reference no: EM1370660

Questions Cloud

Write program to test every entry of table is saddle point : Saddle point is entry in a table which is a minimum for its row and maximum for its column. Write a program which will test every entry of table to see whether it is saddle point.

Compute the money multiplier : Imagine one of worst case scenarios realizes in October 2012, in which Greece does not belong to the eurozone any more, so Greece goes back to use of its own currency, Greek drachma.

Explain the importance of identifying norms within a team : Explain the importance of identifying norms within a team and Why is clear communication considered an essential element during team development?

Compare the consumer surplus with producer surplus : Compare the consumer surplus, producer surplus, and total surplus in this condition to those same measures in a perfectly competitive market.

Question about operating of a business : Assume you decide to open a copy store. You rent store space, and you take out a loan at a local bank and use the money to buy 10 copiers.

Conclude the net charge contained within the cube : A helicopter is ascending perpendicularly with a speed of 5.02 {rm m/s}. At a height of 115 {rm m} above the Earth, a package is dropped from the window.

Find the maximum loan the bank can extend : Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:

Write application to inputs ten numbers from user : Write the application to inputs ten numbers from user, each number can be between 10 and 100, inclusive. As each number is read in determine if it is number already entered.

Monopolistic competition and collusion : Describe (include an explanation of economic profit in your explanation). Will price be higher or lower under such the agreement in long-run equilibrium than would be the case if firms didn't collude? Discuss.

User Account

All Pages