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Tina Researched DE Industries and Decided the Firm Has Good

question 5

Essay

Tina researched DE Industries and decided the firm has good growth prospects.Since she knows the owners,she approached them with an offer.Her offer was $1 million in cash in exchange for 20 percent ownership in the firm.Both parties have agreed to the terms of her offer but Tina does have one remaining concern.She wants to ensure that she can maintain her proposed ownership percentage in the future.What can she do to ensure this will occur?


Definitions:

Actual Costs

The genuine expenses that are incurred in the production or acquisition of goods and services.

Standard Costs

Predetermined cost estimates relating to how much it should cost to produce a product or provide a service under normal conditions.

Time Variance

The difference between the projected time to complete a task and the actual time taken, often analyzed in project management.

Direct Labor Hours

The total amount of time, measured in hours, that workers spend directly manufacturing goods or providing services.

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