Professional Documents
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1. Joey and Jason have recently obtained a license to set up business. They are
free to set up any business of their choice. In the end, they have decided to
target a large retiree community and open a music store selling Rap CDs (e.g.
Eminem, Snoop Dog). Comment on their decision.
2. Businesses are good for the society. Discuss how they can contribute. Provide
two (2) specific examples for each type of contribution.
3. Define the term barrier to entry. Which type of business (goods-producing or
service) has bigger barriers to entry? Why?
4. List two (2) types of barriers to entry and give one example for each type.
5. In which economic condition should a business lower the price of its product
and services? Why?
6. Explain what a free market or capitalistic economy means? And a planned
economy?
Sales $146,000
General Expense $17,300
Salary Expenses $32,000
Cost of Goods Sold $55,130
Rental Revenues $7,200
Interest Expense $2,800
Based on the data given above, prepare a 2014 income statement for the
company.
15. Besides writing and keeping every receipt dutifully, what else can you do
to keep a close eye on the funds (so they dont go missing) during the
charity drive? Suggest TWO (2) solutions.