Changes in the Number of Production Machines, Capital Structure and Production Technology - F.A.Q.

101.How does a purchase of a production machine appear in the managerial reports?
Answer: A purchase of a production machine appears in the managerial reports as a change in the capital value.

102.How does a change in production technology appear in the managerial reports?
Answer: Changes in production technology appears in the managerial reports as changes in capital value.

103.Is there a limitation on acquiring shares from shareholders?
Answer: Yes there is a limitation on acquiring shares from shareholders. The firm must keep a minimal number of 50,000 shares.

104.How does the 'Book Value' of production machinery affect the cost of production technology change?
Answer: This affects the cost of production technology changes in that the value returned to the firm in the event of selling the machine is based upon its book value.