Purchasing insurance for a business mainly reveals that "the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company."
What is the purpose of insurance?The purpose of insurance is to have coverage or a backup in case of unexpected negative events. For example, with health insurance companies or people pay a small amount of money every month to make sure expenses are at least partially covered if there is a medical emergency occurs.
Why do some business owners pay for insurance?Similarly, business owners paying for insurance expect to have some financial support in case a negative event occurs regarding the business. This shows they are aware of risks and want to transfer this or decrease it by paying.
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After a basketball tournament, nine of the team members go out to The Cheesecake Factory to celebrate your winning with a victory dinner. You all order dinner plus some people get dessert. When the check comes the waiters says it all has to be one ticket. What is the best option for this payment scenario?
The best option for this payment scenario is through credit card, a person may initially pay the whole amount while the rest of the team members can transfer their amount of dinner to the person who made the payment at the restaurant through P2P.
What is Credit Card?Credit card is the card that is issued by a bank and the card holder can avail the cash limit provided to him/her, without having an actual amount in the account. The credit card can be used for shopping and more and the bill for the credit card is generated at the end of the month and the payment by card holder is made, if the card holder delays the payment an interest is charged on the rate.
At the cheesecake Factory the payment can be made through a credit card and the other team members may transfer the amount to the person who makes the payment at restaurant with a credit card.
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Parkway Holdings Limited was founded eight years ago by Keith and Karena Parkway. The company manufactures and installs both traditional and contemporary models of electrical equipment. The company has experienced rapid growth because of the new technology that increases the energy efficiency of its systems. The company is equally owned by Keith and Karena, holding 200,000 shares each. Last week Keith and Karena decided to value their holdings in the company for financial planning purposes. To accomplish this, they have gathered the following information about some main competitors in the industry. EPS ($) DPS ($) Share Price ($) ROE (%) Required rate (%) Auckland Electricals Ltd 0.38 0.08 3.65 8.15 7.25 R M Smithers Ltd 0.36 0.16 4.25 9.05 6.65 T.P Jarmon Electricals Ltd -0.18 0.21 3.23 7.15 8.05 Industry Average 0.28 0.19 4.24 8.25 6.45 Last year, Parkway Holdings Limited d had an EPS of $0.36 and paid dividends to Keith and Karena of $44,500 each. The company also had a return on equity of 8.05%. Therefore, Keith and Karena believe a required rate of return of 6.95% for the company is appropriate. Required: 1. Assuming the company continues its current growth rate (which should be calculated from the data given) into the infinite period, what is its share price? (5marks) 2. Keith and Karena have hired Roger Sterling, a consultant, to verify their calculations. Roger has completed a Bachelor of Engineering and understands the electrical industry well. He examined the company's financial statements and those of its competitors. Although Parkway Holdings Ltd currently has a technological advantage, Roger's research indicates that the company's competitors are investigating other methods to improve efficiency. Given this, Roger believes that Parkway Holdings Ltd's technological advantage will last only for the next five years. After that period, the company's growth will likely slow down to the industry average. Additionally, he believes that the company's required return currently is high, so the industry average required return is a more appropriate rate for valuation. Taking Roger's assumptions into consideration, calculate the estimated share price of Parkway Holdings Ltd. (12 marks) 3. Based on Roger's estimation in part (2) above, what is Parkway Holdings Ltd's price-earnings ratio? First, calculate the industry average price-earnings ratio. Then, explain why Parkway's price-earnings ratio differs from the industry average P/E ratio. (4 marks) 4. Explain the issues in implementing the Dividend Growth Model.
Assuming the company continues its current growth rate, the estimated share price of Parkway Holdings Limited is approximately $1,093,014.98.
To calculate the share price of Parkway Holdings Limited assuming its current growth rate continues indefinitely, we can use the dividend discount model (DDM). The DDM calculates the intrinsic value of a stock based on its expected future dividends. Since Parkway Holdings Limited pays dividends, we can use the following formula:
Share Price = Dividends per Share / (Required Rate of Return - Dividend Growth Rate)
Given:
EPS = $0.36
DPS = $44,500 (dividends paid to Keith and Karena)
ROE = 8.05%
Required rate of return = 6.95%
First, we need to calculate the dividend growth rate. Since EPS is used to calculate dividends, we can assume that EPS represents the future dividends.
Dividend Growth Rate = ROE * Retention Ratio
Retention Ratio = (EPS - DPS) / EPS
Retention Ratio = (0.36 - 44,500/200,000) / 0.36
Retention Ratio = 0.24
Dividend Growth Rate = 8.05% * 0.24 = 1.932%
Now, we can calculate the share price:
Share Price = $44,500 / (6.95% - 1.932%)
Share Price ≈ $1,093,014.98
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What were the most important factors that led to the midwest becoming known as the rust belt?
The First Bank of the United States ceased operations because:
it was superseded by the Second Bank of the United States
of the opposition of state banking interests
its charter had expired and there was no provision for its renewal
the need to provide financing for the Civil War was not supported by Congress
Yes, The First Bank of the United States, established in 1791, faced multiple factors that contributed to its cessation of operations.
Firstly, it was superseded by the Second Bank of the United States, which was chartered in 1816. The establishment of the Second Bank assumed many of the functions and responsibilities previously held by the First Bank, making it less relevant and necessary.
Secondly, the opposition of state banking interests played a significant role. Some state banks viewed the First Bank as a threat to their own operations and opposed the concentration of financial power in a national bank. These state banking interests advocated for a decentralized banking system, leading to resistance against the First Bank's continued existence.
Another factor was the expiration of the First Bank's charter in 1811. Without provisions for its renewal, the bank was unable to continue its operations legally. The expiration of the charter marked the end of the First Bank's official existence.
Lastly, during the period of the Civil War, the First Bank did not receive support from Congress for providing financing. Despite the increased financial demands of the war, Congress opted for alternative means of financing such as issuing war bonds. This lack of support from Congress further contributed to the bank's inability to sustain its operations.
In conclusion, the First Bank of the United States ceased operations due to being superseded by the Second Bank, facing opposition from state banking interests, the expiration of its charter without provisions for renewal, and the lack of congressional support for financing during the Civil War. These combined factors ultimately led to the closure of the First Bank of the United States.
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If you borrow $421 for 9 years at an interest rate of 4%, how much interest will you pay?
I will assume it as simple interest as nothing is mentioned
SI = (P × R × T)/100
SI = (421×4×9)/100
SI = 15156/100
SI = 151.56
You will pay $151.56
Answered by Gauthmath must click thanks and mark brainliest
80% of people starting a business use their own personal savings. What is the advantage to this strategy versus using bank loans and credit cards? A. You control how the money is spent B. You will not pay interest on the capital. C. You do not have any risk of losing your money.
An advantage of using personal savings instead of bank loans and credit cards is you will not pay interest on the capital. (option B)
What is personal savings?Personal savings is the wealth that a person has accumulated over a period of time. When a person uses his personal savings to start a business, the person would not have to pay interest on the money used in the business because the funds used belongs to the person.
Banks loans and credit cards are subject to interest payment over the duration of the loan. Interest would increase the cost of starting the business. Funds that are gotten either from bank loans or personal savings can be lost if the business is not successful. Also, three is an opportunity cost associated in using the funds for starting a business. Opportunity cost is the cost of the next best option forgone when one option is chosen over other options.
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A chord of a circle is l cm long. The distance of the chord to the center of the circle is h cm and the radius of the circle is r cm. express r in terms of l and h
Answer:
http://www.mrbartonmaths.com/resources/GCSE%20Revision/GCSE%20Maths%20Takeaway/4.%20Grades%20B%20to%20A-star/107.pdf
Explanation:
THis is published by me....
The risk for firms that follow the unrelated diversification strategy in developed economies is that:_____.
The risk for firms that follow the unrelated diversification strategy in developed economies is that During recessions, external investors frequently sell their conglomerate stock. Business risk is the potential for a firm or organization to have lower earnings or failure. A business risk is anything that compromises a company's capacity to meet its financial objectives.
Numerous variables may combine to produce firms risk. Damage from fire, flood, or other natural disasters are a few examples of hazards with uncertainty as their basis. sudden financial loss brought on by a recession or the failure of another company that owes you money.
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In trading account freight belongs to which side debit or credit?
Answer:
Explanation:
In trading account, freight belongs to the debit side. It is a direct expenses on purchases and manufacturing operation
Freight is the cost incurred in transporting an item to its final destination when the terms are FOB shipping point. It is treated as part of the cost of merchandise and recorded in the inventory if the merchandise has not been sold.
Increase in the cost of freight are recorded on the debit side while decrease are recorded on the credit side.
Is it better for bondholders when the yield to maturity increases or​ decreases? Bondholders are better off when the yield to​ maturity:
The yield to maturity (YTM) of a bond refers to the total return expected by bondholders if they hold the bond until it matures. It takes into account the bond's current market price, its coupon rate, and the time remaining until maturity.
When the yield to maturity increases, bondholders are generally worse off. This is because a higher YTM means that the bond's price has decreased in the market. If bondholders decide to sell their bonds before maturity, they would receive a lower price than what they initially paid. Additionally, a higher YTM indicates that the bond's interest payments are relatively less attractive compared to other investments available in the market.
On the other hand, when the yield to maturity decreases, bondholders are generally better off. A lower YTM means that the bond's price has increased in the market. If bondholders were to sell their bonds before maturity, they would receive a higher price than what they initially paid. Furthermore, a lower YTM indicates that the bond's interest payments are relatively more attractive compared to other investments available in the market.
In conclusion, bondholders are better off when the yield to maturity decreases because it results in an increase in the bond's market price and makes the bond's interest payments relatively more attractive.
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What causes the gross domestic product to go up?
A.) a rising unemployment rate
B.) more investment in businesses
C.) a reduction in exports
D.) less government spending
Answer: B
Explanation: No
More investment in businesses causes the gross domestic product to go up. Thus, option 'B' is the correct option.
What is the gross domestic product?Gross domestic product (GDP) is a monetary indicator of the total market value of all the final commodities and services that nations generate and sell over a certain time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
To compare living standards between countries, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful, whereas nominal GDP is more useful for comparing national economies on the global market. GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries. The contribution of each industry or sector to the overall GDP may also be quantified.
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Define the following:
1. Allocation of resources
2. Economic system
3. Market economy
1. Allocation of resources
apportionment of productive assets among different uses.
2. Economic system
by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.
3. Market economy
an economic system where two forces, known as supply and demand, direct the production of goods and services.
eg: US, Japan
Think about an item that you are interested in purchasing. Perhaps it is a new computer, an MP3 player, a new book, or a new bike. Now think of an alternative product that you are also interested in purchasing. Search the web and find out what each of these items costs. Then create your own decision-making grid similar to the one in the previous screen. When you have completed your grid, explain in at least one well-developed paragraph which item you have chosen to buy and why. Submit both your grid and your paragraph for grading.
Answer:
I have no idea tbh......
The account of ABC Corp. prepared a statement of affairs. Total assets which there are no claims or liens are expected to produce P2,100,000. Unsecured claims of all classes totaled to P3,150,000.
The following are claims deemed outstanding:
Accrued salaries. P45,000
Unrecorded note for P30,000, on which P1,800 of interest has accrued
A note for P90,000 secured by P120,000 receivable, estimated to be 60% collectible
A P45,000 note on which P900 interest has accrued with a property having book value of P30,000 and a market value of P54,000 is pledged to guarantee payment of principal and interest.
Unpaid income taxes of P105,000.
What is the amount realized by partially secured creditors?
Group of answer choices
P72,000
P83,700
P90,000
P83,160
So, the amount realized by partially secured creditors is -$6,000.
The amount realized by partially secured creditors can be calculated as follows:
Secured claims that are expected to be collected in full:
P90,000 secured by P120,000 receivable (60% collectible) = P90,000 x 60% = P54,000
P45,000 note secured by P30,000 property = P45,000
Unsecured claims that are expected to be collected in full:
Accrued salaries = P45,000
Unrecorded note for P30,000 (100% collectible) = P30,000
Unsecured claims that are partially collectible:
P105,000 unpaid income taxes = P105,000
The amount realized by partially secured creditors can be calculated as follows:
P54,000 secured claims + P45,000 unsecured claims = P99,000
P99,000 - P105,000 = -$6,000
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When labor usage is at 12 units, output is 36 units. From this we may infer that
when labor usage is at 12 units, the output is 36 units, which implies a productivity rate of 3 units per unit of labor.
Based on the information provided, we can infer that the productivity or output per unit of labor is 3 units.
To determine this, we divide the total output (36 units) by the labor usage (12 units):
Output per unit of labor = Total output / Labor usage
Output per unit of labor = 36 units / 12 units
Output per unit of labor = 3 units
The given data suggests a fixed or constant labor productivity ratio of 3 units of output per unit of labor. This implies that for every 1 unit increase in labor usage, there is a corresponding increase in output by 3 units.
This consistent labor productivity ratio indicates that the production process is operating with a constant level of efficiency. It suggests that the technology, processes, and factors other than labor remain unchanged during the observed period.
However, it's important to note that this analysis is based on a single data point and may not capture the full complexity of the production system. Factors such as economies of scale, technological advancements, and other inputs may also influence the overall productivity. Further data and analysis would be necessary to gain a more comprehensive understanding of the relationship between labor usage and output in this scenario.
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Lewis paid this year a $2,940 for an annual property tax. If the mill rate is 28 and 60% of the market value is the assessed ratio, what market value did the assesor assign to the lewis property?
$175,000 is the market value the assessor assigned to the lewis property.
175,000 x .6 = 105,000
105,000 x .028 =2940
Market value or OMV (Open marketplace Valuation) is the charge at which an asset would exchange in an aggressive public sale putting. marketplace fee is regularly used interchangeably with the open market fee, honest value, or honest marketplace price, even though these terms have wonderful definitions in different standards, and fluctuate in some situations.
Market value is an idea awesome from marketplace charge, that's "the price at which you can transact", whilst marketplace value is "the authentic underlying cost" in line with theoretical standards. The concept is most commonly invoked in inefficient markets or disequilibrium conditions where triumphing market fees aren't reflective of proper underlying market value. For marketplace fees to identical marketplace prices, the marketplace has to be informationally green, and rational expectations have to be successful.
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The production possibilities frontier (PPF) showsa. the trade-off between the efficient production of two different goods.b. the difference between microanalysis and macro analysis.c. the difference between normative and positive analysis.d. how a firm should price a new product.e. how price and quantity are related for a single good.
The production possibilities frontier (PPF) shows the trade-off between the efficient production of two different goods.
It illustrates the maximum combination of two goods that can be produced with a given set of resources and technology. The PPF highlights the opportunity cost of producing one good over the other, as the production of one good comes at the expense of producing less of the other.
It is a microeconomic concept that helps firms and economies make production decisions. It is not related to macro analysis, normative and positive analysis, or how a firm should price a new product.
However, the PPF can provide insights into how price and quantity are related for a single good, as it shows the production possibilities of different combinations of goods at different prices.
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Which is a feature of a certificate of deposit (CD)?
The feature of a certificate of deposit (CD) is that money can be fixed for some period of time.
What is certificate of deposit ?A certificate of deposit (CD) can be described as the savings account which is hep to hold fixed amount of money so that it can be saved for some period of time.
It should be noted that this period could be six months, one year, or five years, and in exchange, the issuing bank pays interest.
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Review the chapter's opening story involving Amazon.com and its founder, Jeff Bezos.
Required: a. In a business such as Amazon.com, monitoring cash flow is always a priority. Even though Amazon now has billions in annual sales and sometimes earn a positive net income, explain how cash flow can lag behind net income.
b. Amazon is a publicly-traded corporation. What are potential sources of financing for its future expansion?
c. Explain how even in periods of net loss for Amazon, it still manages to show positive cash flow. (Hint: Think about sources of cash.)
2. Katie Murphy is preparing to meet with her banker. Her business if finishing its fourth year of operations. In the first year, it had negative cash flows from operations. In the second and third years, cash flows from operations were positive. However, inventory costs rose significantly in year 4 and cash flows from operations will probably be down by 25%. Murphy wants to secure a line of credit as a financing buffer. From experience, she knows the bank will scrutinize operating cash flows from year 1 to 4 and will want a projection for year 5. Murphy wants to show a steady rise in operating cash flows. She decides to use here discretion as owner and considers several business actions that will turn her operating cash flows from a decrease to an increase.
a. Identify two business actions Murphy might take to improve cash flows from operations.
b. Comment on the ethics and possible consequences of Murphy's decision to pursue these actions.
Expert Answer
100% (1 rating)
In general, it is important for Murphy to balance the benefits and drawbacks of any business action she takes in order to ensure that she is acting ethically and in the best interests of her business.
a. Monitoring cash flow is always a priority for businesses like Amazon.com because even though the company may have billions in annual sales and occasionally earn a positive net income, there can still be fluctuations in cash flow. This is because cash flow is affected by a variety of factors, such as changes in accounts receivable, inventory, and payables, which can vary from quarter to quarter.
b. There are several potential sources of financing for Amazon's future expansion, including: Issuing bonds: Amazon could issue bonds to raise money from investors. This would involve paying interest on the bonds to investors, but it would provide a source of financing that could be used to expand the business.
c. Even in periods of net loss for Amazon, it still manages to show positive cash flow. This is because Amazon's cash flow is affected by changes in accounts receivable, inventory, and payables. For example, if Amazon sells more products on credit, it will have to invest more in accounts receivable, which will increase its cash outflow. However, if it sells more products, it will also have more cash coming in from customers, which will increase its cash inflow. Similarly, if Amazon buys more inventory on credit, it will have to pay more upfront, which will decrease its cash outflow. However, if it sells more products, it will have more cash coming in from sales. Therefore, even in periods of net loss, Amazon may still have positive cash flow if its accounts receivable and inventory are managed effectively.
a. Two business actions that Katie Murphy might take to improve cash flows from operations are:
b. The ethics and possible consequences of Murphy's decision to pursue these actions are as follows:
Reducing accounts receivable: While reducing accounts receivable can increase cash inflow and reduce cash outflow, it may also have negative consequences for Murphy's customers. Customers may be less likely to do business with Murphy if they feel that they are being pressured to pay early or if they feel that their credit is being unfairly questioned.
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Which best describes the amplitude of a sound wave and distance from the source where it will be measured with an intensity of 16Io? Increase the amplitude to 8xo and stand 2 meters from the source. Increase the amplitude to 4xo and stand 10 meters from the source. Increase the amplitude to 2xo and stand 2 meters from the source. Increase the amplitude to 4xo and stand 8 meters from the source
The best description of the amplitude of a sound wave and distance from the source where it will be measured with an intensity of 16Io is to increase the amplitude to 8xo and stand 2 meters from the source.
The intensity of a sound wave is inversely proportional to the square of the distance from the source. This means that if you double the distance from the source, the intensity will be one-fourth as much. So, if you increase the amplitude to 8xo and stand 2 meters from the source, the intensity will be 16Io. This is because the amplitude is squared when calculating the intensity.
The other three options would not result in an intensity of 16Io. If you increase the amplitude to 4xo and stand 10 meters from the source, the intensity would be 1/4Io. If you increase the amplitude to 2xo and stand 2 meters from the source, the intensity would be 1/16Io. And if you increase the amplitude to 4xo and stand 8 meters from the source, the intensity would be 1/2Io.
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Which of the following factors in productiservice planning affects product protection, product image, and indentification of the product's brand
Answer:
A: D
Explanation:
When demand and production increase, what usually decreases?
Answer:
Price usually decreases
Explanation: When a product’s demand and production increase, PRICE usually decreases.
Answer:
Prices
Explanation:
Take the example of Apple. If Apple was to lower the price of the iPhone 11 to 300 dollars then there would be way more people buying the iPhone. Demand went up because prices went down
The association stradegy is used to_________information
Answer:
The association strategy is used to help memorized information.
Explanation:
A benefit of using association is that it allows the learner to be creative and have fun. ... The association strategy is used to help memorized information.
Which example best shows a safety issue related to a large manufacturing business?
Question 13 options:
The machines at the business are found to waste energy and cause excess costs.
Broken machinery and flammable chemical containers are left sitting in the parking lot.
Poverty has forced the neighborhood surrounding a business to become deserted.
The flu season has caused a high rate of absent employees at the business.
The example that best shows safety issue is B. Broken machinery and flammable chemical containers are left sitting in the parking lot.
How is this a safety issue ?Improperly repaired or unremoved broken machinery poses a significant risk of potential accidents and injuries to workers. Also, maintaining flammable chemical containers in the parking lot can trigger explosive or harmful situations where chemicals may leak or ignite.
This, in turn, could lead to unfavorable outcomes by endangering the employees, visitors, as well as the surrounding environment. However, other available options unrelated to security might pertain to cost reduction measures for energy conservation purposes aimed at achieving financial and environmental benefits.
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the greatest amount of responsibility for providing customer satisfaction falls on the shoulders of
Salespeople
I hope this helps you! Happy to help; have a great day! :)
if at a price of $24, octavia sells 36 home-grown orchids and at $30 she sells 24 home-grown orchids, the demand for her orchids is
The given information shows a negative relationship between the price and the demand for home-grown orchids. The demand for orchids decreases as the price increases.
The given information shows a negative relationship between the price and the demand for home-grown orchids. The demand for orchids decreases as the price increases. It is evident from the given data that Octavia sells more home-grown orchids at $24 (36 orchids) compared to when she sells them at $30 (24 orchids). Therefore, we can conclude that her home-grown orchids are price elastic as there is a significant change in the quantity demanded when the price changes. This indicates that if Octavia decides to increase the price of her home-grown orchids, the demand for them will decrease, and if she decreases the price, the demand will increase. Additionally, the price elasticity of demand for her orchids can be calculated as follows: Price elasticity of demand = (Percentage change in quantity demanded) ÷ (Percentage change in price)Using the formula, we get the following: Price elasticity of demand = [(36-24) ÷ ((36+24)/2)] ÷ [(30-24) ÷ ((30+24)/2)]Price elasticity of demand = (12 ÷ 30) ÷ (6 ÷ 27)Price elasticity of demand = 0.4 ÷ 0.22Price elasticity of demand ≈ 1.82Since the calculated value of price elasticity of demand is greater than 1, the demand for Octavia's home-grown orchids is price elastic.
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You have learned about a noncash expense in a previous lesson, what was it? HINT: it relates to the company's use of its equipment
Answer:
Non cash expenses are the charges incurred by a company that educes the earnings and not the cash flows of a company.
Explanation:
A non-cash charge is defined as the accounting expenses or the write down expenses which does not involve a cash payment. The depletion, depreciation, stock-based compensation, amortization and the asset impairments are the common non cash charges which reduces the earnings but not the cash flows.
Non-cash expenses relates to he use of a company's equipment and tools which is used to run the company and which encounters depreciation and a degradation in its value or cost. Thus they are considered as the non cash expenses of a company.
Raman is a Government servant, his wife Radha is an advocate and their son Amit is engaged in retailing of electronic goods. Identify the type of activities they are engaged in. Also differentiate between the identified activities on any three parameters.
Answer:
Kindly see Explanation
Explanation:
Raman is described above as being a government servant, this means Raman is an employee of the Federal or State Government. In other words, Raman works in a government runned establishment. Raman is in the civil service.
Radha who is described as an advocate could be explained as an individual who lends his or her voice in other to make others get heard or a protagonist of a certain course.Radha could be described as being into Law or judicial activities.
Amit who retails electronic goods could be described as being self-employed who is into buying and selling.
Difference between activities of Raman, Radha and Amit.
1.) Engagement sector:
Raman works in the civil service, while Radha work is inclined with the legal and activism process and Amit is into commerce.
EMPLOYER:
2.) Raman is clearly a government employee, Radha could work for Non-governmental or Volunteer organizations, while Amit is Self-employed.
DECISION-MAKING :
3.) Raman works based on defined government framework and rules, Radha as an advocate is more inclined towards promoting morality, While Amit will make decisions based on what is best for his business as an entrepreneur.
suppose savannah's art studio is charging the market price, which is slightly higher than her average total cost. this means that savannah:
If Savannah's art studio is charging the market price, which is slightly higher than her average total cost, it means that she is earning a profit on her products or services. Option a is Correct.
The market price is the price that consumers are willing to pay for a product or service, while the average total cost (ATC) is the total cost of producing a product or providing a service, including all the costs of labor, materials, and overhead. If the market price is slightly higher than the ATC, it means that Savannah is earning a profit margin above her average total cost. This profit margin allows her to cover her costs and generate revenue to sustain her business.
However, if Savannah continues to charge a price that is significantly higher than her ATC, she may not be able to attract enough customers to sustain her business, as consumers may perceive her products or services as overpriced compared to similar offerings from competitors. Therefore, it's important for Savannah to strike a balance between charging a price that is high enough to cover her costs and attract customers, while also ensuring that her products or services are competitively priced in the market. Option a is Correct.
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Correct Question:
Suppose savannah's art studio is charging the market price, which is slightly higher than her average total cost. this means that savannah :
a. is earning a small economic profit.
b. is incurring a small economic loss.
c. is breaking even.
d. should shut down immediately.
Partnership made when direct investment in a foreign country occurs with a domestic partner are called a. Multinationals b. Mini-nationals c. Joint ventures d. Cooperatives
Answer:
c. Joint ventures
Explanation:
A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located. In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.
Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;
1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.
2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.
3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.
Partnership made when direct investment in a foreign country occurs with a domestic partner are called joint ventures. It is typically established or initiated by two or more people on mutual grounds to make profits and sharing costs.