What are the three financial ratios that constitute return on revenue, and what do they tell us?
What will be an ideal response?
Return on revenue is broken down into three financial ratios: Cost of goods sold/Revenue, Research & development (R&D) expense/Revenue, and Selling, general, & administrative (SG&A) expense/Revenue.
Cost of goods sold/Revenue provides information on how efficiently a company can produce a good. R&D/Revenue, indicates how much of each dollar that the firm earns in sales is invested to conduct research and development. A higher percentage is generally an indicator of a stronger focus on innovation to improve current products and services, and to come up with new ones. SG&A/Revenue, indicates how much of each dollar that the firm earns in sales is invested in sales, general, and administrative (SG&A) expenses. Generally, this ratio is an indicator of the firm's focus on marketing and sales to promote its products and services.
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Successful negotiation involves the management of ________ (e.g., the price or the terms of agreement) and also the resolution of ________.
Fill in the blank(s) with the appropriate word(s).
Trevor and Brian enter into a partnership and decide to share profits and losses as follows:
1. The first allocation is a salary allowance with Trevor receiving $10,000 and Brian receiving $20,000. 2. The second allocation is 20% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Trevor and Brian are $50,000 and $40,000, respectively. 3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership reported net income of $50,000. Required: 1. Calculate the share of profit allocated to each partner. 2. Prepare the journal entry to record the allocation of profit on December 31, 2019.
A franchisor that makes sales or earnings projections based on hypothetical examples need not disclose the assumptions underlying the estimates
Indicate whether the statement is true or false
In terms of the global marketplace, there are three primary types of companies: ________ firms, multinational firms, and transnational firms.
A. international B. conglomerate C. worldwide D. intercontinental E. cosmopolitan