Pepperdine reported net sales of $8,500 million, net income of $126 million and average accounts receivable, net of $680 million. its accounts receivable turnover is:
Answers
Pepperdine's accounts receivable turnover is 12.5 times.
To calculate the accounts receivable turnover, we need to divide the net sales by the average accounts receivable, net.
Accounts Receivable Turnover = Net Sales / Average Accounts Receivable, Net
Using the given figures, we can calculate the accounts receivable turnover as follows:
Accounts Receivable Turnover = $8,500 million / $680 million
Accounts Receivable Turnover = 12.5
Therefore, Pepperdine's accounts receivable turnover is 12.5 times. This means that on average, Pepperdine collects its accounts receivable 12.5 times during a year.
A high accounts receivable turnover indicates that a company has efficient collections procedures and is collecting its excellent receivables quickly.
On the other hand, a low accounts receivable turnover indicates that a company is taking longer to collect its outstanding receivables, which can lead to cash flow issues.
In this case, Pepperdine's accounts receivable turnover of 12.5 is relatively high, which indicates that the company has an efficient collections process and is collecting its outstanding receivables quickly.
This is a positive sign for the company's financial health as it helps to maintain a healthy cash flow and ensures that the company can meet its financial obligations.
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Related Questions
Briefly discuss the theory of normal backwardation. What does the recent evidence suggest about the commodity risk premium?
Suppose you are expecting an announcement of corn inventories in a few days from now. There has been a period of severe drought. What impact do you expect the announcement to have on the position of a long hedger and that of a long speculator? Use arguments from the theory of storage to support your answer.
Answers
Regarding the recent evidence about the commodity risk premium, it is important to note that commodity markets are influenced by various factors such as supply and demand dynamics, geopolitical events, and market sentiment.
The theory of normal backwardation, proposed by economist John Maynard Keynes, suggests that in a well-functioning futures market, the futures price of a commodity tends to be lower than the expected spot price at the time of delivery. This means that the futures price is backwardated.
According to the theory, market participants who are willing to take on the risk of holding the physical commodity (known as long hedgers) are compensated for their risk by earning a positive risk premium. This risk premium offsets any potential losses they may incur due to adverse price movements. On the other hand, speculators who take the opposite position (short position) in the futures market do not require compensation for risk since they are not involved in the physical commodity.
Regarding the recent evidence about the commodity risk premium, it is important to note that commodity markets are influenced by various factors such as supply and demand dynamics, geopolitical events, and market sentiment. Empirical studies on the commodity risk premium have shown mixed results, suggesting that it can vary over time and across different commodities.
Now, let's consider the impact of an announcement of corn inventories in a situation of severe drought, using arguments from the theory of storage.
For a long hedger who has a long position in the corn futures market, the announcement of low corn inventories due to the severe drought is likely to result in a positive price shock. This is because the reduced supply of corn creates scarcity, leading to an expectation of higher spot prices. As a result, the futures price would increase, providing a favorable position for the long hedger who is seeking to lock in a price to protect against potential losses in the physical market.
On the other hand, for a long speculator who holds a long position in the corn futures market without any physical exposure, the announcement of low corn inventories is also expected to result in a positive price shock. However, unlike the long hedger, the long speculator does not have the same need for price protection. Instead, the long speculator seeks to profit from price increases in the futures market. Therefore, the announcement would lead to potential gains for the long speculator.
In summary, the announcement of low corn inventories due to a severe drought is likely to have a positive impact on the positions of both the long hedger and the long speculator. The long hedger benefits from locking in a favorable futures price to protect against potential losses in the physical market, while the long speculator aims to profit from the expected price increases.
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if the elasticity of demand is 3, and the price rises by 15 percent, the a,) the quantity demanded will increase by 5 percentb.) the quantitty demanded will fall by 45 percentc,) the quantity demanded will rise by 4.5 percentd,) the percentage change in quantity demanded will fall as income risesn
Answers
The quantity demanded will fall by 45 percent. This is because the elasticity of demand measures the responsiveness of the quantity demanded to a change in price. The correct option is b.
Based on your question, you have provided the elasticity of demand (3) and a 15% price increase. Using the formula for price elasticity of demand (percentage change in quantity demanded / percentage change in price), we can determine the change in quantity demanded.
Given the price elasticity of demand (PED) is 3, and the price rises by 15%, we can set up the equation:
3 = (percentage change in quantity demanded) / 15%
Rearranging the equation, we get:
Percentage change in quantity demanded = 3 * 15% = 45%
Since the PED is greater than 1, this represents elastic demand, which means that a percentage change in price will result in a greater percentage change in quantity demanded. In this case, the 15% price increase will cause the quantity demanded to fall by 45%.
Therefore, the correct answer is: b.) the quantity demanded will fall by 45 percent.
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Which of the following shift the aggregate demand curve?
a.Increasesidecreases in foreign income b.Changes in govemment spending c.Increases in the value of a foreign currency holding the domestic currency value fixed
d.all the above
Answers
The correct answer is: d. All of the above
All three factors mentioned - increases/decreases in foreign income, changes in government spending, and increases in the value of a foreign currency holding the domestic currency value fixed - can shift the aggregate demand curve.
Increases or decreases in foreign income can impact the demand for domestically produced goods and services. If foreign income increases, it may lead to an increase in the demand for exports, thereby shifting the aggregate demand curve to the right. Conversely, if foreign income decreases, it may lead to a decrease in the demand for exports, shifting the aggregate demand curve to the left.
Changes in government spending directly influence aggregate demand. An increase in government spending, such as on infrastructure projects or public services, can boost overall demand in the economy, shifting the aggregate demand curve to the right. Conversely, a decrease in government spending can reduce aggregate demand and shift the curve to the left.
Increases in the value of a foreign currency, while holding the domestic currency value fixed, can affect the demand for imports. If the value of a foreign currency increases, it makes imports relatively cheaper, which can lead to an increase in the demand for imports. This, in turn, reduces domestic demand for domestically produced goods and services, shifting the aggregate demand curve to the left.
Therefore, all three factors mentioned can cause shifts in the aggregate demand curve.
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which criticism is aimed toward university presses? a they produce mostly obscure books that only a handful of scholars read. b they focus on publishing only blockbuster books. c their alliances with commercial houses have driven up costs. d they don’t contribute to professors’ chances for tenure.
Answers
The criticism aimed towards the university presses is that they produce mostly obscure books that only a handful of scholars read.
A university press is an associate degree academic publishing house specializing in monographs and academic journals. Most are nonprofit organizations[citation needed] and an integral part of a large research university. They publish work that has been reviewed by students within the field. They manufacture primarily academic works however also usually have trade books for a lay audience. These trade books also get peer-reviewed.
Because scholarly books are principally unprofitable, university presses may publish textbooks and reference works, that tend to own larger audiences and sell additional copies. Most university presses operate at a loss and are backed by their owners; others are needed to interrupt even. Demand has fallen as library budgets are cut and the online sales of used books undercut the new book market. several presses are experimenting with electronic commercial enterprise
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DUE TODAY PLEASE HELP T^T
One reason picking a career that interests you is that you might easily spend 30-40 years doing that job.
False
True
Answers
Answer:
False
Explanation:
Because you would spend 30-40 years of that career that YOU would enjoy. If you do something that's easy but not fun, then you would most likely end up quitting that job/career.
Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now? How much of the future value is total interest? By how much would total interest be greater at a 6 percent interest rate than at a 4 percent interest rate?
Answers
The total interest earned at a 6 percent interest rate would be $9.26 greater than the total interest earned at a 4 percent interest rate.
The future value of $100 in four years, assuming a 4 percent annual interest rate, can be calculated using the formula for future value of a lump sum:
FV = PV x (1 + r)^n
Where:
PV = Present Value = $100
r = Annual interest rate = 4% = 0.04
n = Number of years = 4
FV = $100 x (1 + 0.04)^4 = $100 x 1.1699 = $116.99
Therefore, the future value of $100 in four years at a 4 percent interest rate is $116.99.
To calculate the total interest earned, we can subtract the initial principal from the future value:
Total interest = FV - PV = $116.99 - $100 = $16.99
So, $16.99 of the future value of $116.99 is total interest.
To find out how much total interest would be greater at a 6 percent interest rate than at a 4 percent interest rate, we can use the same formula for future value with an interest rate of 6%:
FV (at 6%) = $100 x (1 + 0.06)^4 = $126.25
Total interest at 6% = $126.25 - $100 = $26.25
The difference in total interest between the two interest rates is:
$26.25 - $16.99 = $9.26
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the basic considerations for setting prices on goods that are traded across borders does not include: a) does the price reflect the product's quality? b) is the price competitive given the local market conditions? c) which type of discount does the firm offer its international customers? d) do the foreign country's dumping laws pose a problem? e) is it feasible to use home country pricing?
Answers
The following are not basic factors taken into account when determining prices for items traded across international borders: Use of home country pricing is possible. The answer is (e).
Setting prices for cross-border trading involves a number of factors, such as the dumping laws of other nations, prices set by rival businesses, the trade-off between price and quality, and discounts to be provided in the foreign market. Perhaps the most significant pricing tactic of all is value pricing. This considers how valuable, important, and beneficial your customers consider your goods or services to be.
Pricing may be less expensive in a market that is nearby than it would be in a market that is farther away because of the lower cost of transportation. If the products are competing in a crowded market with many other high-quality options for customers, prices may be lower. This tactic is the one that geographic pricing is most often linked with. Customers within certain regions pay the same price for goods and services, while those who live further away pay extra.
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A business is having trouble keeping up with the competition. They cannot
respond to their customers like the competition. Which type of system will
likely be able to help them solve this issue?
O A. Management communication system
B. Management information system
O C. Transaction processing system
D. Decision support system
Answers
Answer:a
Explanation:
Manage communication system
David left $300 in an account that earns 5% interest on
the money he originally deposited. When he collected his
interest, he had earned $60 in interest. How long did he
leave the money in the account?
Answers
The amount of time that David did not touch the funds in the account is equal to four years.
Can you explain the concept of earned interest?A person who invests a certain sum of money for a predetermined length of time is entitled to receive a predetermined amount of money on a regular basis as interest on that investment.
The initial investment is equal to $300 (p).
The time, or T, equals X.
The rate of interest yield, denoted by (R), is equal to 5%.
$ 60 is equivalent to simple interest (SI).
Applying the calculation method;
SI = P×T×R/100
Transform T into the focus of the formula;
T = SI×100/P*R
T= 60×100/300×5
T= 6000/1500
T equals four years.
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________ involves creating a video, e-mail, mobile message, advertisement, or other marketing event that is so infectious that customers will seek it out or pass it along to their friends
Answers
The means that involves creating a video, email, mobile message, advertisement, or another marketing event that is so infectious that customers will seek it out or pass it along to their friends is Viral Marketing.
What do you mean by marketing?Marketing refers to the activities undertaken by a company for promoting the buying or selling of a product.
Viral marketing refers to spreading information about any product or service from person to person by word of mouth or sharing via the internet or email.
Viral marketing will increase a company's reach and customer base.
Therefore, viral marketing is the correct choice.
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Income received by households through the lending of their money to corporations and business firms is an example of
income.
Answers
Answer:
Interest / Dividend Income
Explanation:
Answer:
Answer for EDGE is C or Interest
Explanation:
Why are employment and age certificates typically required?.
Answers
Answer:
They protect employers from hiring someone that is too young.They indicate the minor has the proper training to work.They guarantee the minor will be hired.
Explanation:
hope this helps
A manufacturer's raw-material purchasing department would likely be classified as a: Select one: a. investment center. b. cost center. c. profit center. d. contribution center. e. revenue center.
Answers
b. cost center
The department responsible for buying raw materials for a manufacturing would probably be categorized as a cost center.
What are cost centers and how do they differ?There are primarily two categories of cost centers: centers for production costs, where goods are made or processed. An assembly area is an illustration of this. Cost centers for services, where goods and services are delivered to other cost centers. The canteen or the personnel office are two examples of this.
What sort of thing would be a cost center?The accounting, human resources, IT, maintenance, and research and development departments are a few examples of cost centers. In comparison to a department, a cost center can be defined at a lower level. It might have to do with a certain machine, manufacturing line, or work role.
Why is a cost center created?Cost centers' main duty is to maintain a record of the costs incurred. The managers or other high-level officials are tasked with keeping expenditures in line with the allotted budget; they are not responsible for the use of the earnings that are earned.
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On January 2, The Public Legal Clinic issued Check 2108 for $370 to establish a petty cash fund. Indicate how this transaction would be recorded in a cash payments journal.
Answers
To create the petty cash fund, make the following journal entry: debit Petty cash fund account ($430), credit cash account ($430).
What is petty cash fund?A petty cash fund's main objective is to give business units enough money to pay for small expenses. The purpose is to make it easier for staff workers and visitors to get reimbursed for little expenses like taxi rides, postage, office supplies, and other things that often don't cost more than $25.00.
The data can also come from of the petty cash fund. Add up all of the expenses that are mentioned on each petty cash vouchers in the petty cash fund. This sum should be deducted from the calculated cash withdrawal amount. The outcome ought to be 0. There is an excess of cash in the fund if there is a residual balance.
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assets cash $ 20,000 accounts receivable 70,000 merchandise inventory 153,000 property, plant and equipment, net of $572,000 accumulated depreciation 1,094,000 total assets $ 1,337,000 liabilities and stockholders' equity accounts payable $ 254,000 common stock 820,000 retained earnings 263,000 total liabilities and stockholders' equity $ 1,337,000 december cash disbursements for merchandise purchases would be:
Answers
Based on the information provided, we can see that the company has merchandise inventory of $153,000. However, we are not given any information about the company's credit purchases or credit terms with suppliers. Therefore, we cannot accurately determine the December cash disbursements for merchandise purchases.
To calculate December cash disbursements for merchandise purchases, we need to analyze the given information:
Total Assets = $1,337,000
Total Liabilities and Stockholders' Equity = $1,337,000
Both sides of the equation are balanced, so we can proceed. Unfortunately, there isn't enough information provided to calculate the December cash disbursements for merchandise purchases. We would need additional data, such as the accounts payable balance at the beginning of December and any non-merchandise-related payables. Without this information, it's not possible to determine the cash disbursements for merchandise purchases in December.
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Valentino & Oaks Footwear sells 100 units of one of a famous brand daily. The supplier takes two days to deliver more, and they want to have a safety stock of three day's sales.
At what quantity should the inventory manager place his/her next order?
PLEASE TELL ME THAT SOMEONE KNOWS REORDER POINTS
Answers
Answer:
500 units
Explanation:
In inventory management, the reorder point is the inventory level, where a business needs to issue a purchase order for more stocks. The reorder point is influenced by delivery time, desired safety stock, and the average daily sales.
The formula for calculating the reorder point is as follows.
Reorder point = ( average daily sales x delivery lead time) + safety stock
In this case,
Reorder point = (100 x 2) + (100 x3)
= 200 +300
=500 units
Arielle is in high school and is considering a career pathway to pursue after graduation. She has always done best in math classes and enjoys complex problems. In fact, when her friends make costumes and decorations for parties, she is more interested in organizing the supplies for the party and determining the costs involved. Which career pathway would best fit with the skills Arielle displays when helping plan parties
Answers
Answer:
B).Consumer Services
Explanation:
Because consumer services refers to the formulation, deformulation, technical consulting and testing of most consumer products therefore this will be the only option that fits what she wants to do.
Answer:
B; Consumer Services
Explanation:
I am taking the test right now, this is the answer I am using.
How an economist thinks that the economy works - is itself-regulating or not? - Influences his opinion of the role government should play in trying to stabilize the economy. Do you agree or disagree? Why or why not?
Answers
An economist's view of how the economy works, specifically whether it is self-regulating or not, influences their opinion on the role of government in stabilizing the economy.
An economist's thoughtsIf an economist believes that the economy is self-regulating, they may think that the government should play a minimal role in trying to stabilize the economy.On the other hand, if an economist believes that the economy is not self-regulating, they may think that the government should play a larger role in trying to stabilize the economy.I agree with this statement because the belief in how the economy works influences an economist's opinion on the role of government in the economy. If an economist believes that the economy is self-regulating, they will likely support policies that allow for minimal government intervention. However, if an economist believes that the economy is not self-regulating, they will likely support policies that allow for more government intervention in order to stabilize the economy.
Ultimately, an economist's view of how the economy works influences their opinion on the role of government in the economy.
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identify two other types of business organisation jameel lost his job
Answers
Answer:
When Jameel lost his job with a fruit and vegetable shop that closed downhe decided to open his own store. He had good contacts with suppliers.
They said they would give him one month’s credit before he paid for
supplies. Jameel had $5000 in savings to invest in the shop. He thought thiswould be sufficient to start the business. He is an independent man - he
never liked taking the manager’s orders in the food shop! He wanted to
operate his new business as a sole trader
Explanation: hope this helps if not i am sorry
Franchises and partnerships are two other types of business organisations jameel lost his job.
Franchises and partnerships are two distinct business models that involve collaboration between different entities. Franchising is a business arrangement where a franchisee licenses the right to use a well-established brand, business model, and support from a franchisor in exchange for fees and royalties.
This allows the franchisee to operate under an established brand with proven systems. Partnerships, on the other hand, involve two or more individuals or companies pooling their resources and expertise to run a business together, sharing profits and liabilities. Both models offer unique advantages, such as brand recognition in franchising and shared responsibilities in partnerships.
Therefore, Franchises and partnerships are two other types of business organisations jameel lost his job.
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Probably the full question is:
When Jameel lost his job with a fruit and vegetable shop that closed down he decided to open his own store. He had good contacts with suppliers. They said they would give him one month’s credit before he paid for supplies. Jameel had $5000 in savings to invest in the shop. He thought this would be sufficient to start the business. He is an independent man - he never liked taking the manager’s orders in the food shop! He wanted to operate his new business as a sole trader.
Identify two other types of business organisations jameel lost his job.
PLEASE HELP!! I WILL GIVE BRAINLIEST!!!
Your manager has been asked to speak to a community group about an upcoming development project that will be demolishing an old mall and building a mixed-use space with apartments, retail, and office space—a topic that has created some controversy in the community. She’s asked for your help in putting together her presentation. Do you think that a live or virtual presentation would be most effective? Why? What types of multimedia elements do you think would be most engaging? Why?
Answers
Answer:
use both the photos to help with the anwer it cut the photo so you have to go back and forth for the anwer
Sales for a _____ product begin immediately after introduction because the benefits of purchase are readily understood by consumers.
fad
fashion
low-learning
high-learning
technological
Answers
Sales for a high-learning technological product begin immediately after introduction because the benefits of purchase are readily understood by consumers.
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Which industry is Amazon involved in ?
Answers
Answer:
Cloud computing e-commerce artificial intelligence consumer electronics digital distribution self-driving cars
Explanation:
Answer:
Cloud computing e-commerce
Explanation:
it is used for artificial intelligence or the use of robots
do you guys like Canada? or leaves in Canada and do you thin im a cut Canadian
Answers
Answer:
I love canada but I live in america :(
but hey we just got the Cheeto out so it's getting better here (*˘︶˘*).｡*♡
Part 2 Directions
Reflect on what you see in your social media feeds and on other websites you visit. What kinds of posts,
articles, links, ads, etc., do you see that might be inside your filter bubble? Write them above the green
arrows. Then, think about steps you could take to burst your filter bubble, and write them below the red
arrows. What sites, people, opinions, etc., could you seek out? What other steps could you take?
What topics, opinions, people, websites, and experiences are inside your filter bubble?
Answers
Answer:
Explanation:
Reflect on what you see in your social media feeds and on other websites you visit. What kinds of posts,
articles, links, ads, etc., do you see that might be inside your filter bubble?
================================
I spend time doing Internet searches on 4 topics:
1) News updates on Ukraine, Jan 6th Committee, and local news
2) Travel information for leisure trips around the world and local
3) Science and Techology for presentations on current topics to the community
4) Search for movie and restaurant reviews
-----
This has led to many ads and articles that generally praise the destinations for tarvel, dining, and entertainment. I've also noticed a large increase in fake technology claims. Medications that cure anything. Energy-saving heating and cooling systems that seem to defy physics laws, and special offers from countries I've explored online. One time I got an email concerning an article that was just published that analyzed the impact on climate change on governments around the world, It predicted major conflicts between certain countries in the near future. Although I normally would have skipped reading this level of hype, the article was filled with references to news media and scientific journals, I began to explore deeper by going to the references. What I discovered was that the predictions for many of the events came from organizations that got funding from affected parties. A claim that Alaska had experienced it's worst flooding ever came from a small-town newspaper commenting on a nearby creek. Most of the refences were suspect, so I looked closer at the author. I discovered he was a writer who sold his work to magazines and nespapers. His list of authoritative articles ranged from global climate change, women's health issues, stock market fundamentals, accounting practices, . . . . you name it. He wrote whatever it took to get paid.
My filter bubble was feeding me biased information that usually had a monetary connection. It requires honest evaluation and careful research to avoid these misleading items.
============
Then, think about steps you could take to burst your filter bubble, and write them below the red
arrows.
-----------------------------
The steps I take to avoid misinformation is to fact-check where I can, and use judgement as to the honesty of the item. I use Scopes to check online for evidence of fake news. I also rely on referred journals for technical information.
=================
What sites, people, opinions, etc., could you seek out? What other steps could you take?
----------------------
Use public television and radio, referried journals, notable news media source such as Washington Post, and visit blogs where others are discussing the topic. Odd user names signal suspicious sources of information, as does bad grammer (e.g., I past minister finance and I got big sum money I like give you).
===============
What topics, opinions, people, websites, and experiences are inside your filter bubble?
----------------
Topics: science and technology, digital graphic arts, travel.
Opinions: Washington Post, PBS. Boston Globe, Time Magazine
People: Wife, co-workers, respected authors (e.g., Bill Bryson, Sam Kean) and scientists. I use ACS (American Chemical Society) and various other Physics and Math websites hosted by universities or technical organizations.
Experiences: I've lived through Y2K, cold fusion, weapons of mass destruction, and numerous claims of innocence from politicians.
Hailey works in a spa. today, there was a sale on a particular color of nail polish. twenty customers came in asking for the nail polish. which qualification helped hailey make it through the day without getting frustrated? a. patience for performing a repetitive task b. specialized skill at manicures c. socialization skillsd. knowledge of current trends
Answers
Boredom is a common side effect of repetitive work, and boredom can lead to blunders. Challenge yourself to do the task more quickly to change your routine. The time passes more quickly as a result, and you typically do more. Have a cheerful attitude and refrain from concentrating on the drawbacks of repetitious duties at work.
It can be irritating and exhausting to keep doing the same labor or task if twenty people come in asking for the same kind of shine. However, she did require patience when performing repetitious tasks because doing so helped keep her sane.
So, option a. is the correct answer that is patience for performing a repetitive task.
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Forever 21 is expected to pay an annual dividend of $3.24 per share in one year, which is then expected to grow by 10% per year. The required rate of return is 14%. What is the stock's value?
Answers
The value of the stock for Forever 21 is approximately $23.14.
To calculate the stock's value, we can use the Gordon Growth Model, also known as the dividend discount model. The formula for the Gordon Growth Model is as follows:
Stock Value = Dividend / (Required Rate of Return - Dividend Growth Rate)
Given that the annual dividend is $3.24 and the dividend growth rate is 10%, and the required rate of return is 14%, we can plug these values into the formula:
Stock Value = $3.24 / (0.14 - 0.10)
Stock Value = $3.24 / 0.04
Stock Value ≈ $81
Therefore, the stock's value for Forever 21 is approximately $81. However, this represents the value in one year. To find the current value, we need to discount it back to the present value using the required rate of return.
Assuming a one-year time period, we can use the formula:
Present Value = Future Value / (1 + Required Rate of Return)
Present Value = $81 / (1 + 0.14)
Present Value ≈ $23.14
Therefore, the stock's value for Forever 21 is approximately $23.14.
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outline 2 advantages to H&H of using secondary market research
Answers
Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable
the question is in the picture, please help!!
Answers
Answer: At a trial in a U.S. District Court, witnesses give testimony and a judge or jury decides who is guilty or not guilty — or who is liable or not liable. The appellate courts do not retry cases or hear new evidence. They do not hear witnesses testify.
Explanation:
explain why it is not necessary to purchase product replacement warranties.
Answers
It is not always necessary to purchase product replacement warranties because there are low chance that item will be damaged and the cost are always expensive as well.
Product replacement warranties does guarantees to repair or replace a faulty product during the warranty period.
That is, when the product is damaged, the firm who offers the Product replacement warranties must replace the product.However, it is not always necessary to purchase product replacement warranties because there are low chance that item will be damaged and the cost are always expensive as well.
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In a economy, the government owns the means of production.
(a) Command
(b) Market
(c) Real
(d) Inelastic
Answers
Answer:
(a) Command
Explanation:
A command economy is also known as planned economy and it can be defined as a type of economy in which the government owns and control the means of production.
This ultimately implies that, in a command economy, the government owns the means of production.
Societies that operate a command economy generally practices communism.
Communism is a system of philosophical, political, social organization and economical ideologies that advocates the elimination of private property but a profit-based economy with public ownership of the means of production.
It ultimately aims to ensure each person contributes and receives according to their abilities and needs.
Vietnam, China and Cuba are examples of communist countries that operate a command economy.
In conclusion, a command economy requires that the method of exchange, distribution, as well as the means of production of goods and services and allocation of resources for production should be controlled or regulated by the public (government) rather than the private sector.