If two companies have the same sales, tax rate, interest rate on their debt, total assets, and basic earning power, but Company HD has a higher debt ratio and, therefore, a higher interest expense, then Company LD has a higher ROE (Return on Equity) because it has a lower debt ratio.
This is the correct statement.In finance, ROE (Return on Equity) is a ratio that evaluates the rate of return on shareholders' equity investment. The return on equity (ROE) is an important profitability ratio that measures the percentage return earned by shareholders on their equity investment in the business. It's calculated by dividing net income by shareholders' equity.
Here, the companies are assumed to have equal amounts of sales, taxes, interest rates, total assets, and basic earning power. Both companies have positive net income. However, Company HD has a higher debt ratio and a higher interest expense. As a result, the company has a lower return on equity (ROE) because its profits are being eaten up by interest charges on its debt.
To know more about companies visit:
https://brainly.com/question/30532251
#SPJ11
Which describes one of the ways that culture influences consumer behavior?
1)Many cultures promote the belief that hard work is an end in itself.
2)Cultures produce values and beliefs that differ from one person to the next.
3)People with strong cultural traditions are more likely to make rational choices. 4)Traditions and holidays often involve specific foods or gifts.
The study of people, groups, or organizations and all the behaviors connected to the acquisition, consumption, and disposal of products and services is known as consumer behavior.
What is the meaning of consumer behavior?Consumer behavior is the study of persons, groups, especially organizations, and all behaviors related to the purchase, use, and disposal of goods and services. Consumer behavior refers to how a person's feelings, attitudes, and preferences influence their purchasing decisions.
Consumer behavior can be broken down into four different categories: complex purchasing, dissonance reduction, variety seeking, and repetitive purchasing. The kind of product each consumer needs, their level of engagement, and the variations between companies all influence the many types of consumer behavior.
Learn more about consumer behavior here:
https://brainly.com/question/14238700
#SPJ9
When economists test their theories using evidence-based analysis, they are most likely using ____________.
When economists test their theories using , they are most likely using empiricism through the use of data.
What is evidence-based analysis?
An evidence-based review can be described as the evaluation of different means such as the literature as well as its say as regards a specific question in the field.
Tis help to establish the quality of the research base within the field as a whole , hence When economists test their theories using , they are most likely using empiricism through the use of data.
Learn more on economists at:
https://brainly.com/question/10564789
#SPJ1
An association that Korean Americans are able to use to pool their money together and provide grants to subsidize the startup costs of businesses are called
Answer:
KYES
Explanation:
KYES are clubs created by Korean Americans in which the members make a contribution and the money gathered is used to provide loans to start businesses. According to this, the answer is that an association that Korean Americans are able to use to pool their money together and provide grants to subsidize the startup costs of businesses are called KYES.
Wal-Mart is an example of a(n) ______ because it is a business with operations in multiple countries.
dual partnership
multinational organization
international partner
multinational corporation
Wal-Mart is an instance of a multinational agency.
The required details for Wal-Mart in given paragraph
Walmart Inc. is an American multinational retail agency that operates a sequence of hypermarkets (additionally known as supercenters), discount branch shops, and grocery shops from the United States, founded in Bentonville, Arkansas. The enterprise turned into based by Sam Walton in nearby Rogers, Arkansas in 1962 and integrated below Delaware General Corporation Law on October 31, 1969. As of October 31, 2022, Walmart has 10,586 shops and golf equipment in 24 countries, running below forty six different names. The enterprise operates below the call Walmart within side the United States and Canada, as Walmart de México y Centro América in Mexico and Central America, and as Flipkart Wholesale in India. It has thoroughly owned operations in Chile, Canada, and South Africa. Since August 2018, Walmart held simplest a minority stake in Walmart Brazil, which turned into renamed Grupo Big in August 2019, with 20 percentage of the enterprise's shares, and personal fairness firm Advent International protecting eighty percentage possession of the enterprise.
They in the end divested their shareholdings in Grupo Big to French retailer Carrefour, in transaction worth R$7 billion and finished on June 7, 2022.
To know about Wal-Mart click here
https://brainly.com/question/27744358
#SPJ4
Recount the methods used to assign costs to inventory and cost of goods sold under both a perpetual and a periodic system. (Check all that apply.) Multiple select question. Weighted average Specific identification First-in, first-out Last-in, first-out First-in, last-out Last-in, last-out
The methods used to assign costs to inventory and cost of goods sold under both a perpetual and a period system are:
a. Weighted average
b. Specific identification
c. First-in, first-out
d. Last-in, first-out
What are the inventory methods?For most businesses, the four inventory methods used for assigning costs to the ending inventory and the cost of goods sold for the period are the Weighted average, Specific identification, First-in, first-out, and Last-in, first-out.
Thus, the inventory methods do not include First-in, last-out Last-in, last-out.
Learn more about inventory methods at https://brainly.com/question/6640325
Select the correct answer. Which utility applies to a company that educates customers about its products' features? OA form utility O B. knowledge utility O C. possession utility D. place utility O E. price utility Reset Next
Answer:place utility
Explanation:
Utility applies to a company that educates customers about its products' features is possession utility. Thus the correct option is C.
What is a product?A product is referred to as a finished good distributed in the market to serve the customers. This product is tangible in nature which consumers can see, touch and utilize.
Possession utility measures the degree of usefulness or perceived value a consumer gets from owning a certain product. Companies must make their products easier to own because this increases the product's perceived value.
Therefore, option C possession utility is the appropriate answer.
Learn more about possession utility, here:
https://brainly.com/question/15381693
#SPJ2
closing case in 1998, self-described snowboarder and surfer dude chip wilson took his first yoga class. the vancouver native loved the exercises but hated do- ing them in the cotton clothing that was standard yoga wear at the time. for wilson, who had worked in the sportswear business and had a passion for technical athletic fabrics, wearing cotton clothes to do sweaty, stretchy, power yoga exercises seemed inappropriate. thus, the idea for lululemon was born. wilson’s vision was to create high-quality, styl- ishly designed clothing for yoga and related sports activities using the very best technical fabrics. he built a design team, but outsourced manufacturing to low-cost producers in south east asia. rather than selling clothing through existing retailers, wilson elected to open his own stores. the idea was to staff the stores with employees who were them- selves passionate about exercise, and who could act as ambassadors for healthy living through yoga and related sports such as running and cycling. the first store, opened in vancouver, canada, in 2000, quickly became a runaway success, and other stores followed. in 2007, the company went public, using the capital raised to accelerate its expansion plans. by late 2017, lululemon had over 380 stores, mostly in north america, and sales in excess of $2.34 billion. sales per square foot were estimated to be around $1,560—more than four times that of an average specialty retailer. lululemon’s financial performance was stellar. between 2008 and 2017, average return on invested capital–an important measure of profitability–was around 31%, far out- pacing that of other well-known specialty retailers, while earnings per share grew tenfold. how did lululemon achieve this? it started with a focus on an unmet consumer need: the la- tent desire among yoga enthusiasts for high-quality, stylish, technical athletic wear. getting the product offering right was a central part of the company’s strategy. an equally important part of the strat- egy was to stock a limited supp
Lululemon achieved its success by identifying and meeting the unmet need for high-quality, stylish, technical athletic wear for yoga enthusiasts.
They focused on product excellence and stocked limited supplies, creating a sense of exclusivity and driving demand. Lululemon's success can be attributed to several key factors. Firstly, founder Chip Wilson identified a gap in the market and developed a unique product offering that catered specifically to the needs and desires of yoga practitioners. By combining technical fabrics with stylish designs, Lululemon differentiated itself from traditional cotton-based yoga wear. Secondly, the company adopted a direct-to-consumer model by opening their own stores and employing passionate, knowledgeable staff as brand ambassadors. This approach allowed them to create a personalized customer experience and build a strong community around the brand. Additionally, Lululemon maintained a sense of exclusivity by stocking limited supplies, creating a perception of scarcity and driving demand. These strategic decisions, coupled with strong financial performance and profitability, contributed to Lululemon's remarkable success.
Learn more about stocked here:
https://brainly.com/question/31476517
#SPJ11
Which document describes a worker's employment experience, strengths, skills, education, and other qualifications?
A.
Resume
B.
Cover letter
C.
Referral
D.
Reference
Answer:
A. Resume
Explanation:
A resume is a document prepared by a job seeker to itemize their education qualification and work experiences. It is a formal document sent to a potential employer by a job applicant. The resume shows an applicant's qualifications for the position advertised.
A resume is usually sent together with a cover letter.
Answer:
It's A
Explanation: hope it helps ^w^
Your company has been doing well, reaching $1 million inearnings, and is considering launching a new product. Designing the new product has already cost $500,000. The company estimates that it will sell 800,000 units per year for $3.00 per unit and variable non-labor costs will be $1.00 per unit. Production will end after year 3. New equipment costing $1 million will be required. The equipment will be depreciated to zero using the7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3. Your current level of working capital is $300,000. The new product will require the working capital to increase to a level of $380,000 immediately, then to $400,000 in year 1, $350,000 in year 2, and finally return to $300,000. Your tax rate is 35%. The discount rate for this project is 10%. Do the capital budgeting analysis for this project and calculate its NPV.
explanation on how to get the depreciation would be great, too
Capital budgeting analysis is used to evaluate investment decisions. NPV is a technique used in capital budgeting to analyze the profitability of an investment or project by calculating the present value of cash inflows and outflows. A positive NPV indicates that the investment or project will be profitable, while a negative NPV indicates that the investment or project will not be profitable.
Calculate the NPV of the project
Step 1: Determine the initial investment or outflow
The initial investment or outflow is $1,500,000, which is the sum of the cost of designing the new product ($500,000) and the cost of new equipment ($1,000,000).
Step 2: Determine the annual cash inflows
Units sold per year = 800,000
Revenue per unit = $3
Variable non-labor costs per unit = $1
Revenue - Variable non-labor costs = $2
Annual cash inflows = 800,000 x $2 = $1,600,000
Step 3: Determine the annual cash outflows
Year 1: Working capital increase = $80,000
New equipment depreciation = $980,000
Total cash outflows = $1,060,000
Year 2: Working capital increase = -$50,000
New equipment depreciation= $140,000
Total cash outflows = $90,000
Year 3: Working capital increase = -$50,000
New equipment depreciation = $140,000
Total cash outflows= $90,000
Step 4: Calculate the present value of cash inflows and outflows using the discount rate of 10%
Year 0 = -$1,500,000
Year 1: Cash inflows = $1,600,000; Cash outflows = -$1,060,000
Net cash inflows = $540,000
Present value = $490,909.09
Year 2: Cash inflows = $1,600,000; Cash outflows = -$90,000
Net cash inflows = $1,510,000
Present value = $1,247,933.88
Year 3: Cash inflows = $1,600,000; Cash outflows = -$90,000
Net cash inflows = $1,510,000
Present value = $1,157,025.83
Step 5: Calculate the sum of the present value of cash inflows and outflows
NPV = Sum of the present value of cash inflows - Initial investment
= $490,909.09 + $1,247,933.88 + $1,157,025.83 - $1,500,000NPV
= $395,868.80
Therefore, the NPV of the project is $395,868.80.
The depreciation calculation is based on the Modified Accelerated Cost Recovery System (MACRS) method, which is used for tax purposes in the United States. The 7-year MACRS schedule means that the equipment will be depreciated over 7 years, with a higher percentage of depreciation in the early years and a lower percentage in the later years.
The percentage of depreciation for each year are:
Year 1 = 14.29%
Year 2 = 24.49%
Year 3 = 17.49%
Year 4 = 12.49%
Year 5 = 8.93%
Year 6 = 8.92%
Year 7 = 8.93%
The depreciation expense for each year is calculated by multiplying the percentage of depreciation by the cost of the equipment. For example, the depreciation expense in year 1 is $1,000,000 x 14.29% = $142,900.
Calculate NVP: https://brainly.com/question/33551726
#SPJ11
When someone makes a choice, what are all the other alternatives that are given up by making that choice called?
When someone makes a choice, what are all the other alternatives that are given up by making that choice called trade-offs.
All of economics is about tradeoffs. Any circumstance where choosing one course of action results in giving up another, often foregoing a reward or opportunity, is referred to as a tradeoff. A bonus in one area must be a minus in another, and in these zero-sum circumstances we encounter tradeoffs. The investigation of how humans distribute limited resources and bargain over opportunity costs is a central tenet of economic theory.
If we apply economic principles to resources other than money, economics provides instruments that we may utilize as guides for achieving our goals in life. Even while we all understand that money isn't limitless, we frequently treat our time, energy, and attention as if they are.
Learn more about Trade-offs, here
https://brainly.com/question/10895386
#SPJ9
what stage of the jopes process includes mobilization, deployment, employment, sustainment, redeployment, rotation, and demobilization activities? (joint force command and staff participation in the joint operation planning and execution system, page 13
The stage of the Joint Operation Planning and Execution System (JOPES) that includes mobilization, deployment, employment, sustainment, redeployment, rotation, and demobilization activities is the execution phase.
During this phase, the plans and concepts developed during the previous phases are put into action. The execution phase involves the actual deployment of forces and resources, as well as their employment in achieving the mission objectives.
Sustainment activities ensure that the forces remain effective over time. Once the mission is accomplished, forces are redeployed, rotated, or demobilized as appropriate. This phase requires close coordination between the joint force command and staff to ensure that the mission is executed effectively and efficiently.
For more questions like Joint Operation click the link below:
https://brainly.com/question/28232853
#SPJ11
3. ______ are defined as goods or services that are required for health and safety.
Occupational Health and Safety are defined as goods or services that are required for health and safety. Information standards are guidelines governing the information that must be provided to consumers when they purchase specific goods.
What is the safety of goods?A safe product is one that delivers either no risk or a minimum tolerable level of risk, taking into account the product's typical or reasonably foreseeable use and the need to maintain a high level of consumer protection.
Occupational health and safety is a multidisciplinary discipline that deals with all elements of workplace health and safety, with a heavy emphasis on preventing workplace dangers.
Learn more about the safety of goods here:
https://brainly.com/question/28480753
#SPJ1
what is the first step in the comprehensive strategic-management model
The first step in the comprehensive strategic management model is typically conducting a thorough analysis of the organization's internal and external environment.
This initial step involves evaluating the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis), assessing its competitive position, and understanding the broader industry and market dynamics. By conducting a detailed analysis, decision-makers gain insights into the internal resources, capabilities, and limitations of the organization, as well as the external factors that may impact its performance. This information serves as the foundation for formulating effective strategies and making informed decisions. Understanding the organization's current state and the external landscape is crucial for setting objectives, identifying strategic options, and aligning the strategic management process with the organization's vision and goals.
Learn more about management here:
https://brainly.com/question/32216947
#SPJ11
our company has reviewed the utilities bills for our company. we have determined that the highest and lowest bills were $5,000 and $3,200 for the months of january and september. if we produced 1,050 and 600 units in these months, what was the fixed cost associated with the utilities bill? group of answer choices $435.50 $485.00 $590.00 $800.00
The fixed cost which associated with the utilities bill is $800.
How to calculate the fixed cost associated with the utilities billAfter reviewing the utilities bills for your company, it was determined that the highest and lowest bills were $5,000 in January and $3,200 in September.
To calculate the fixed cost associated with the utilities bill, we can use the following formula:
Fixed Cost = Total Cost - (Variable Cost per Unit × Number of Units)
First, we need to find the variable cost per unit for both months:
Variable Cost per Unit (January) = ($5,000 - $3,200) / (1,050 units - 600 units) = $1,800 / 450 units = $4 per unit
Now that we have the variable cost per unit, we can calculate the fixed cost for each month:
Fixed Cost (January) = $5,000 - (1,050 units × $4 per unit) = $5,000 - $4,200 = $800.
Learn more about fixed cost at
https://brainly.com/question/17100497
#SPJ11
2. What are some banks, non-banks, technology and retail companies? Name 1 of each and explain what they are and what they do?
Banks are businesses that provide a range of financial services, such as mortgages, savings accounts, and loans. JPMorgan Chase, one of the biggest banks in the US, is an illustration of a bank. Financial services offered by JPMorgan Chase include banking, investing, and credit card services.
What are retail companies?Businesses that sell goods directly to customers are known as retail companies. Walmart, one of the biggest retailers in the world, is a good example of a retail business. Walmart runs a network of grocery stores, discount department stores, and hypermarkets and provides customers with a variety of goods and services.
Companies that provide financial services but lack a banking license are known as non-bank financial institutions. American Express, a provider of credit cards, debit cards, and other financial services, is one example of a non-bank financial institution.
Therefore, banks, non-banks, technology, and retail companies are stated above.
Learn more about Retail companies, here;
https://brainly.com/question/24956502
#SPJ1
the number of federal government employees has grown more rapidly that was the case in many state and local governments. if this trend continues, how will it affect the field of public administration? if growth declines, what are the implications for public employment?
The number of federal government employees has grown more rapidly that was the case in many state and local governments.
If this trend of rapid growth of federal employees continues, the field of public administration will undergo a radical transformation.
It will lead to an increase in the number of federal employees working in the public administration sector. This will cause an increase in the size of the federal government, thereby reducing the size of the state and local government.
It will affect the field of public administration as it will shift the focus of public administration towards the federal government. It will also increase the demand for jobs in the public sector, which will affect the overall employment rate in the country.
If growth declines, it will have implications for public employment. It will lead to a decrease in the number of federal employees working in the public administration sector.
It will result in a decrease in the size of the federal government, thereby increasing the size of the state and local government. This will have implications for the overall employment rate in the country.
It will lead to a decrease in the demand for jobs in the public sector, which will affect the overall employment rate in the country. It will also shift the focus of public administration towards the state and local governments.
Learn more about federal government https://brainly.com/question/29975356
#SPJ11
Which of the following is a disadvantage of cause-related marketing? It does not increase the sale of products. It can lead to customer fatigue. It results in immediate losses for the company. It requires corporations to use anti-competitive measures.
The correct option is: It can lead to customer fatigue.
Cause-related marketing is a strategy where companies align themselves with social or environmental causes to promote their products or services. While it can have several benefits, such as enhancing brand image and customer loyalty, it also has its drawbacks. One of the disadvantages is that cause-related marketing can lead to customer fatigue. When consumers are constantly bombarded with marketing messages tied to various causes, they may become overwhelmed or skeptical about the authenticity of the company's commitment to those causes. This can result in a negative impact on consumer perception and engagement.
learn more about customer fatigue here:
https://brainly.com/question/14892747
#SPJ11
It is the journey and not the destination that counts? is this a growth or fixed mindset?
What is trade liberalisation??
From business subject
Aaron James has a qualifying home office. The office is 500 square feet and the entire house is 2,500 square feet. Use the followinginformation to determine his allowable home office deduction:Net income from self-employment before home office deduction$150,000Expenses from home (100%)Home mortgage interest12,000Property taxes4,000Homeowner's insurance2,500Utilities2,200Depreciation on office portion of home1,100
Aaron James' allowable home office deduction is $19,160.
The office is 500 square feet, and the entire house is 2,500 square feet. Therefore, the office occupies 500/2,500 = 1/5 or 20% of the total square footage.
Next, we calculate the allowable deduction for each expense:
1. Home mortgage interest: Since this is an eligible expense for the entire home, the deduction is 100% of $12,000 = $12,000.
2. Property taxes: Again, since this is an eligible expense for the entire home, the deduction is 100% of $4,000 = $4,000.
3. Homeowner's insurance: Similar to the previous expenses, the deduction is 100% of $2,500 = $2,500.
4. Utilities: Since utilities are typically shared throughout the house, the deduction is based on the percentage of square footage used for the office. In this case, it would be 20% of $2,200 = $440.
5. Depreciation on office portion of home: Depreciation is also based on the percentage of square footage used for the office. Therefore, the deduction is 20% of $1,100 = $220.
To calculate the total allowable home office deduction, we sum up the deductions from each expense:
$12,000 + $4,000 + $2,500 + $440 + $220 = $19,160.
Therefore, Aaron James' allowable home office deduction is $19,160.
learn more about deduction :
https://brainly.com/question/28464254
#SPJ4
HELP LOTS OF POINTS!!
Which information in the accounts payable subsidiary journal is entered after
the amount of credit or debit?
A. The name of the vendor
B. The terms of the sale
C. The balance
D. The date
Answer:
D
Explanation:
Answer: the balance
Explanation: because
______ allows you to earn money while caring for your own children.
a. in-home care
b. home visitor care
c. child care center
d. family child care
WILL GIVE CROWN! RE-POST SINCE IT WOULDN'T ALLOW ME TO EDIT IT.
Answer:
it would say C.
Explanation:
im sorry if this is wrong
have a great day/night
_____ tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness. a. Capital goods b. Financial stocks cyclical companies do. Consumer staples e. Consumer durable goods
1.In a free market society, the answer to the question about how much to produce is determined
by -
A. census data
B. profit projections
C. consumer demand
D. government quotes
Answer:
C
Explanation:
Supply is relative to demand, and how much you produce will depend on how much you'll need to produce, which is demand.
Compose two paragraphs that predict the impact this tax cut and increased funding for unemployment insurance will have on the following: the economy as a whole individuals other government programs the government debt Be sure to justify your predictions, use proper grammar, and include topic sentences, an introduction, a conclusion, and information from the video.
Answer:
Extending the cut to payroll taxes will have a positive impact on the economy as a whole. With the continued decrease in the tax rate, people will have more money to spend more on goods and services. This will encourage businesses to hire more workers and will reduce unemployment. The economy will experience a boost, and recovery will take place. This tax cut will add an extra $40 to the average paycheck. People might use the extra income for rent, groceries, or gas.
Increased funding for unemployment insurance will ensure that eligible unemployed individuals will continue to get unemployment compensation. The extended unemployment compensation will lead to more production in the economy, which will help reduce government debt. An increase in production will lead to an increase in employment and output. When production increases, individuals’ incomes also increase, so the government will collect more income taxes to fund repayment of its debt.
Explanation:
PLATO
Answer:
The tax cut and the increased funding of unemployment insurance will benefit the economy as a whole. As unemployment rise, fewer people are going to have money to buy goods therefore, businesses will have less money to hire workers. This will not be fixed if there weren't any unemployment insurance. With unemployment money, people are going to buy more and the economy will boost. This not only benefits individuals but the economy as a whole. However, this may increase government debt and may have decrease funding to other government programs.
Explanation:
This is not from plato or edmentum. I typed it myself
Question 1 of 3
The bank limits deposits to $200 per day. Ash has $300
to deposit. What should she do?
Select a response.
A Make multiple deposits over a few days
B Not agree to the Terms and Conditions
According to the information provided, Ash should make several deposits spread out over a few days. Thus option A is correct.
Ash can divide the deposit into two separate transactions because the bank only allows deposits of $200 per day and she has $300 to deposit. She is permitted to deposit $200 on the first day and the final $100 on the second day.
She will be able to successfully complete her deposit and stay inside the bank's deposit cap with this method. The correct response is, "Make several deposits over a few days."
Therefore, option A is appropriate.
Learn more about Bank, here:
https://brainly.com/question/12984338
#SPJ1
According to the digital disconnect and the lecture, the global digital divide is the result of _____.
According to Digital Disconnect, the global digital divide is the result of the hyper-commercialization of Internet development that only serves affluent populations/groups.
The Digital Disconnect refers to experts' examination of current theory, research, and practice in socio-digital inequality. The Digital Disconnect provides a thorough analysis of capitalism's exploitation of the Internet. As per the Digital Disconnect, it is the hypercommercialism of mainstream computing technologies that causes the global digital divide. The global digital divide refers to global discrepancies, particularly between developing countries, and developed in access to computing and information resources such as the Internet, as well as the opportunities that such access provides.
You can learn more about global digital divide at
https://brainly.com/question/7478471
#SPJ4
Could someone please help me write a cover letter?
Deflation:_____.
a. can cause budget surpluses.
b. can lead to increased output.
c. does not affect output.
d. can lead to decreased output.
Deflation can lead to decreased output .
Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy.
Deflation can lead to decreased output in a way that the demand of goods is way too high therefore the purchasing power is elevated. And the prices of goods is also lower.
Additionally, manufacturers may get skeptical about producing goods due to the low prices for the goods that affect them.
Although, it may seem like the fact that prices are lower is good, deflation can drastically affect the economy and lead into recession and depression.
For more about Deflation refer here; https://brainly.com/question/28564835
#SPJ4
Help needed ASAP! Will give brainliest;) Try to help on my other questions:)
Entrepreneurs file a DBA document when using another name for their company. Why are DBA’s necessary?
A). DBA’s provide trademarking of the company logo.
B). DBA’s provide identification for taxes.
C). DBA’s are needed to open bank accounts.