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Kamila [148]
1 year ago
6

what are some of the biggest challenges in a for-profit business? (choose all that apply). a) make investment that consistently

yield rates to return to shareholders higher than the cost of financing those projects b) make investment that maximize cash flows over the longer term c) make investment that are better than those of competitors in entering and maintaining a higher share in more markets d) make investment that maximize the profit Available to shareholders​
Business
1 answer:
Mazyrski [523]1 year ago
3 0

The biggest challenges in a for-profit business are :

1. Make investment that maximize the profit Available to shareholders​.

2. Make investment that are better than those of competitors in entering and maintaining a higher share in more markets.

<h3>What is for-profit business?</h3>

This is an organization, whose aim of venturing into business, is to make profit. This is because those who owns the business(shareholders) would expect returns for their investment in the business at the end of the financial period.

Hence, the biggest challenges in a for-profit business are make investment that maximize the profit available to shareholders​ and also improve than their competitors.

Learn more about for-profit business here: brainly.com/question/13815490

#SPJ1

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The firm sells their goods and services in the market while the household buys these goods and services.

Hence, the circular flow diagram represents the interaction between the household and firms with respect to the market.

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Forten Company

Statement of Cash Flows

For the year ended December 31, 2013

Cash flow from operating activities:

Net income                                                                         $145,200

Adjustments to net income:

  • + Depreciation expense $20,000
  • + Loss on sale of equipment $4,500
  • + Decrease in prepaid expenses $500
  • - Increase in accounts receivable $18,000
  • - Increase in merchandise inventory $29,106
  • - Decrease in accounts payable $53,125                <u> -$75,231 </u>

Net cash flow from operating activities                             $69,969

Cash flow from investing activities:

Cash inflow from sale of equipment                                    $15,100

Cash outflow from purchase of equipment                      <u>-$63,000 </u>

Net cash flow from investing activities                             -$47,900

Cash flow from financing activities:

Cash inflow from issuance of common stock                    $70,000

Cash inflow from bank's short term notes payable             $4,000

Cash outflow from bank's short term notes payable        -$44,125

Cash outflow from dividends                                             <u>-$53,000 </u>

Net cash flow from financing activities                              -$23,125

Net cash decrease                                                                -$1,056

Cash balance December 31, 2012                                     $72,000

Cash balance December 31, 2013                                     $70,944

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