Delivery Date Question iSME Process Date Reviewer SME Rationale

Due to unfamiliarity with
 the characteristics and&
nbsp;efficiency of the ne
w product, client deman
Updated d is restricted at th
e startup level. Consolida
7/1/2019 9405147 6/28/2019 answer tion is a stage in&
and
rationale. nbsp;the life cycle of&nb
sp;the sector where busi
nesses begin to come&n
bsp;together, decreasing the&n
bsp;amount of individual 
businesses

Wrong Basically this action is taken by managers

7/1/2019 14980998 6/29/2019 answer after performing a make or buy decision
and
rationale. analysis to reduce costs..
 Invalid
7/22/2019 rationale All of the options given are factors which
7/23/2019 6164966 and lenders look for repayment of business loan.
answer.

Step 1. The cost of factory = $250,000Step 2.

Down payment = (20% of 250,000)
Incorrect =$50,000.Step 3. Balance amount to be paid
= Result of Step 1 - Result of step 2 = 250,000
answer - 50,000 = $200,000.Step 4. $200,000 to paid
7/23/2019 1452652 7/19/2019 and
explanati assume each installment to be 'q' = qLets
in 30 equal installments,
on. *(1.12)^30 q *(1.12)^30 =
$200,000 Thus, solving for 'q',
we get, 6,667 approximately.

An increase in this ratio involves an increase

7/23/2019 11569027 7/22/2019 in profits as well as an increase in risk.
 Incorrect 8.0% = 4% + 0.92(10% ? 4%)]
7/25/2019 option {Given}<br>4% + 0.92(10% ? 4%) =
7/25/2019 4014970 selected 9.52%<br>8% - 9.52% = ?1.52%; therefore,
by SME. the security is overpriced.

Incorrect
answer. Horizontal&nbsp;assessment&nbsp;consists
Question &nbsp;of&nbsp;comparing&nbsp;historical&
is asking nbsp;economic&nbsp;data&nbsp;over&nbsp
7/25/2019 10573529 7/25/2019 the ;a&nbsp;number&nbsp;of&nbsp;reporting&
comparis nbsp;phases&nbsp;or&nbsp;the&nbsp;ratios
on of &nbsp;obtained&nbsp;from&nbsp;this&nbs
data with p;data.
the base
figure.
Reviewer Rationale LE Rationale

The stages in the industry life cycle are The stages in the industry life cycle are
startup, consolidation, growth and decline, startup, consolidation, growth, and
therefore, all of the above options are decline, and therefore, all of the above
correct. options are correct.&nbsp;

The decision making is the process of Decision-making is the process of

selecting best out of the all available selecting best out of the all available
alternatives. Thus, the managerial activity alternatives. Thus, the managerial
of decision making is applicable in the activity of decision-making is applicable
given situation. in the given situation.
The most common sources that lenders
look to for repayment of business loans
are as follows:1) The borrower's cash
flow2) Assets pledged as collateral 3) The
borrower's net worth4) Guarantees given
by the business.Reference:
https://bit.ly/2ZcoNEE
Step 1. The cost of factory = $250,000Step
2. Down payment = (20% of 250,000)
=$50,000.Step 3. Balance amount to be
paid = Result of Step 1 - Result of step 2 =
250,000 - 50,000 = $200,000.Step 4.
$200,000 to paid in 30 equal
installments,Loan amount = Annual
amount x Present value factor of an
annuity at 12% for 30 periods.$200,000 =
Annual amount x 8.0552Annual amount =
$200,000/8.0552 = $24,828.73 or
$24,829.<br><br>
As per accrual concept, entity has to
recognize income or expense when it is
incurred during the year irrespective of
cash is paid or not, so when the entity fails
to pay or postpones the current period
expenses to future period it has to create
liabilities for such expenses, hence
increase in current liabilities indirectly
mean that expenses are increased, so
when the expenses increase it will
decrease profits.When the current
liabilities increases it will result in increase
in payment risk.
The most common sources that lenders
look to for repayment of business loans
are as follows:1) The borrower's cash
flow2) Assets pledged as collateral 3) The
borrower's net worth4) Guarantees given
by the business.Reference:
https://bit.ly/2ZcoNEE
Step 1. The cost of factory =
$250,000Step 2. Down payment = (20%
of 250,000) =$50,000.Step 3. Balance
amount to be paid = Result of Step 1 -
Result of step 2 = 250,000 - 50,000 =
$200,000.Step 4. $200,000 to paid in 30
equal installments,Loan amount =
Annual amount x Present value factor of
an annuity at 12% for 30 periods.
$200,000 = Annual amount x
8.0552Annual amount =
$200,000/8.0552 = $24,828.73 or
$24,829.
As per accrual concept, entity has to
recognize income or expense when it is
incurred during the year irrespective of
cash is paid or not, so when the entity
fails to pay or postpones the current
period expenses to future period it has
to create liabilities for such expenses,
hence increase in current liabilities
indirectly mean that expenses are
increased, so when the expenses
increase it will decrease profits.When the
current liabilities increases it will result in
increase in payment risk.
As per CAPM,Required rate of return = 4%
+ 0.92(10% ? 4%) = 9.52%<br>Since, the
required rate of return is more than the
expected rate of return (8%), the security
is overpriced.
The comparison of financial statement in
which each line item is listed as a
percentage of a base figure within the
statement is known as vertical analysis.
As per CAPM,Required rate of return =
4% + 0.92(10% ? 4%) = 9.52%<br>Since,
the required rate of return is more than
the expected rate of return (8%), the
security is overpriced.
The comparison of the financial
statement in which each line item is
listed as a percentage of a base figure
within the statement is known as vertical
analysis.