Answer:
A. upper-echelons theory
Explanation:
Upper echelons theory postulates that too executives of a company view situations in a highly personalised way that is as a result of their experiences, values, and personalities.
The CEO of Mabel emphasized making affordable, low-maintenance vehicles that could be bought by low-income households.
This decision was as a result of his childhood experience where his parents had difficulty providing money to support the family.
He empathized with low income households, and wanted to provide goods that will help them
Based on the large shipment of big shipping boxes and making direct unloading to a train car for further transport has shown the simplification of transport as a result of:
<h3>What is Containerization?</h3>
This refers to the use of intermodal freight transport where cargoes are used in the transport of goods with the use of freights and superfreighters.
With this in mind, we can see that containerization has globally simplified the transport of products from <em>one mode of shipping</em> to another.
Read more about containerization here:
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<h3>
Option 2 is correct - There is a higher probability of experiencing Financial distress.</h3>
Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.
Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations. This is generally due to high fixed costs, a large degree of illiquid assets, or revenues sensitive to economic downturns.
Following reasons can lead to financial distress in a firm.
- Cash flows - The first sign that things are going wrong is a constant shortage of cash. The old adage that cash is king exists for a reason
- Falling margins and poor profits - Experienced entrepreneurs have learnt that for long-term survival what matters are profits, not only sales. Poor profits are usually the first indicators that a business is not doing well.
- Poor sales growth or decline in revenues - When there is no sales growth despite extreme marketing activities, this could indicate a lack of customer acceptance, which is key to any business success.
- Extended payment days - Another sign of possible trouble is a rise in either creditor or debtor payment days. If business has to delay payments to its creditors, this can force some suppliers to stop supplying
- Difficulty in raising capital - If a company is constantly borrowing and asking its investors to inject more capital, this is an underlying sign that it is increasingly finding it difficult to self-sustain.
Hence, Firms with volatile operating income tend to have lower debt ratios because there is a higher probability of experiencing financial distress.
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Answer:
credit rationing
Explanation:
Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also is a means to maintain equilibrum between loan funds and loan demands.
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Answer:
The Buy American Act
Explanation:
The Buy American Act (BAA) of 1933 requires that American government entities prefer US manufactured products. The law was signed by President Hoover on his last day at office during the Great Depression.
This law only applies to the purchase of products, not services. It requires that government entities must purchase domestic products or products from a list of authorized countries over a certain threshold, which is currently $3,500.
