Table 152 the Company Earns 5 Percent on Current Assets

question 144

Multiple Choice

Table 15.2 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.
-The firm's initial net working capital is ________. (See Table 15.2)

• A) $15,000
• B) $13,000
• C) $5,000
• D) $10,000

Understand and articulate the concepts of transfer pricing and acceptable price ranges within a corporate structure.

Analyze the financial impact of internal division transactions on corporate profit and resource allocation.

Calculate the return on investment (ROI) for a division within a corporation.

Assess the role of variable and fixed costs in setting internal transfer prices and divisional charges.

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Definitions:

Self-actualization Needs

The highest level in Maslow's hierarchy of needs, representing the realization of one's potential, self-fulfillment, seeking personal growth and peak experiences.

Physiological Needs

Basic human requirements such as food, water, and shelter that must be met to ensure survival.

Social Needs

Human desires for belonging, affection, acceptance, and friendship, which are significant in driving consumer behavior.

Safety Needs

The requirement for physical security, stability, and freedom from fear, as part of Maslow's hierarchy of needs.