Do you think the Friedman's statement that the " sole purpose of business is to make profits" is valid ?

Q: Does profit maximization always lead to shareholder’s maximization?

A: Profit Maximization: It is a traditional and narrow approach which aims at maximization of return by…

Q: What interpretation can be made from this equity figure? a.It is a negative figure, so…

A: Here discuss about the details of the decision to make whether the business entity are in the…

Q: Explain the political cost hypothesis of Positive Accounting Theory.

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: In 1970, the great American economist and a Nobel laureate Milton Friedman argued that “the social…

A: The core responsibility of any company is to fulfill its existence goal, which can be either…

Q: A profit-seeking commercial company that deals with money and credit?

A: The question is based on concept of nature of primary business. Primary nature of business describes…

Q: how will a change from cash basis accounting to accural basis accounting positively and negatively…

A: Books of accounts can be maintained either using the cash basis accounting or using the accrual…

Q: What is profit, how is it earned? Explain its effect on businesses.

A: The income statement is prepared to find net income or losses incurred during the period. This is a…

Q: Why is Financial Status very essential for Businesses?

A: The Financial position definition of an organization's monetary prosperity status is significant for…

Q: why is profit maximization supposedly not the most important goal of a company

A: Profit Maximization: The process of raising the profit earning capacity of the business is known as…

Q: w will accounting affect the stability of a business?”

A: Step 1 Accounting is important in running a company because it enables entity  to monitor revenue…

Q: 1. Besides earning a profit, what other objectives might a business have? How can Accounting play an…

A: Accounting: It can be defined as a process that helps companies to maintain their large numbers of…

Q: The value created by a business is created by its assets. True or False?

A: Assets are used to generate revenue. So when the revenue generated by the use of assets is greater…

Q: Do you think that the so-called equity theories of accounting are really theories in the scientific…

A: Yes. equity theories of accounting are really theories in the scientific sense.  the real owners are…

Q: (i) What is the net income for each company? (ii) What is the return on equity for each? (iii) What…

A: Information Provided: EBIT (Frontier) = $40 million EBIT (Metallurgy) = $45 million Tax rate = 40%…

Q: In a financial statement or other financial forms, where do I find or how do I find: Net Income/…

A: Financial Statements are the official or formal records of the financial activities of the business.…

Q: What can be stated about a business with negative owner equity? How did this scenario get to be this…

A: Investors utilize owner equity to assess the financial health of a firm. The amount that…

Q: is it possible for a company to expand itself out of existence, and how can this be avoided as a…

A: Introduction : When a company goes out of existence and shuts down its operations, it is stated that…

Q: What is the so-called BUSINESS JUDGMENT RULE? Discuss

A: Business Judgment Rule:- The business judgment rule is a presumption that in creating a business…

Q: How do you value a business

A: In the world of finance, we often see that a business is being valued. The valuation might be done…

Q: What is E&P and how is it different than a company's net income?

A: Earnings and profits (E&P) are a company's ability to pay dividends to its shareholders. Many…

Q: equity does not represent the market value of the company

A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: Do firms have any responsibilities to society at large? ◦Is stock price maximization good or bad…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: How does net income affect the operation of the business?

A: The bottom line of income statement is net income. It’s the outcome of sales and gains minus the…

Q: Do you agree with the following statement: "Accounting is vital to the success of a business?"…

A: Accounting refers to the process of recording the financial transactions related to the business .…

Q: What is Fair Value Accounting? What are the factors contributing toward the trend of fair value…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: For example, how does understanding profit and loss impact your perspective on operating a company?

A: Knowledge of profit and loss while operating a company is critical to the success of the enterprise.

Q: How would you describe the accounting profit?

A: The answer is about the accounting profit:

Q: 1. Why do we study financial management? Enumerate its benefits to the success of a business.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In financial analysis there is a possibility that business opportunities for growth will be…

A: Financial analysis is the analysis of the business in order to assess the profitability, stability…

Q: What is the importance of business valuation in the business?

A: Valuations are pivotal when it comes to achieving the objectives and understanding the value of the…

Q: Can a business earn a gross profit but incur a net loss? Explain.

A: Gross Profit: Gross profit represents the revenue after the deduction of cost of goods sold from the…

Q: Aren't we being too restrictive on focusing only on the numerical results of not just the financial…

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: What is working capital and how does it differ from other types of capital? What role does it play…

A: Here is the Answer and Explanation:

Q: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: Is it important for an entrepreneur to keep track of profits or cash flow? Explain your answer

A: An entrepreneur is an individual who starts a new company and bears the majority of the risks while…

Q: What may be stated about a business whose equity is negative? How did such a scenario arise?

A: Investors use shareholders' equity, which is shown on a company's balance sheet, to assess a…

Q: Question 6 Can a firm earn an economic loss and an accounting profit at the same time? E Forr

A: Lets understand the basics. Cost are divided into two parts which are, (1) Explicit cost (2)…

Q: Can a business earn a gross profit but incur a net loss?

A: Gross Profit is computed by deducting cost of goods sold from the sales revenue of the business. And…

Q: Which is more favorable for a business - huge debts or small debts? Justify your position

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: why do you think accounting is important especially on businesses?

A: Accounting is defined as the systematic and detailed recording of the financial transactions of a…

Q: Financial accounting is concerned with how and why profits arise. Select one: True False

A:

Q: what are the reasons why an individual venture into a business?

A: When an individual starts his own business that is known as sole-proprietorship.