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umka2103 [35]
2 years ago
14

When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the bu

siness. This practice is known as:
Business
1 answer:
MariettaO [177]2 years ago
5 0

When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as bootstrapping.

<h3>What is bootstrapping?</h3>

Bootstrapping is a word used in business to describe the process of starting and growing a firm utilizing solely available resources, such as personal funds, personal computing equipment, and garage space.

Learn more about bootstrapping here:

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You might be interested in
Coleman Luggage has liabilities of $870,000 that the company must pay back by the end of the month. It currently has a cash bala
Troyanec [42]

Answer:

The answer is low

Explanation:

Liquidity or Solvency is the ability of a business to pay its debt(both in short term and long term).

In the question, Coleman Luggage has a liability of 879,000 and the total current assets(which can be used to offset the liability) are cash balance of $175,000 + inventories of $220,000 + Other short-term assets of $85,000 = $480,000.

To know its solvency (net working capital) = Asset - liability

$480,000-870,000

= -$390,000.

Coleman Luggage has a low solvency because his asset cannot cover all his liabilities. His asset is less than his liabilities

4 0
3 years ago
The fiscal year-end 2016 financial statements for Walt Disney Co. report revenues of $55,632 million, net operating profit after
fredd [130]

Answer:

Option (C) is correct.

Explanation:

Given that,

Revenues = $55,632 million

Net operating profit after tax = $9,954 million

Net operating assets at fiscal year-end 2016 = $58,603 million

Net operating assets at fiscal year-end 2015 = $59,079 million

Net operating profit margin is determined by dividing the net operating profit after tax by the total amount of revenues during a fiscal year.

Net operating profit margin:

= (Net operating profit after tax ÷ Revenues) × 100

= ($9,954 ÷ $55,632) × 100

= 0.1789 × 100

= 17.89%

7 0
3 years ago
If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of
Nezavi [6.7K]

Based on the information given regarding the reserve requirements, there'll be an increase in the money supply by $4000.

A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.

Since the reserve requirement is 25%, a new deposit of $1,000 leads to a potential will lead to an increase in the money supply of $4000. This was calculated thus:

= $1000 / 25%

= $1000 / 0.25

= $4000

Learn more about money on:

brainly.com/question/24556197

5 0
2 years ago
Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we woul
erma4kov [3.2K]

In the market for personal computers, we would expect the Equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

<h3>What is equilibrium quantity?</h3>
  • When there is no shortage or surplus of a product on the market, it is said to be in equilibrium quantity.
  • When supply and demand meet, the amount of an item that consumers want to buy equals the amount supplied by its producers.
  • The equilibrium price is the only price at which consumers' and producers' plans coincide—that is, the amount consumers want to buy of the product, quantity demanded, equals the amount producers want to sell, quantity supplied.
  • Assume there is an increase in both supply and demand for personal computers.
  • The Equilibrium quantity would then rise in the market for personal computers, while the change in the equilibrium price would be ambiguous.

Therefore, in the market for personal computers, we would expect the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

Know more about equilibrium quantity here:

brainly.com/question/22569960

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The correct question is given below:

Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect the Equilibrium quantity to ______ and the change in the equilibrium price to be __________

8 0
2 years ago
Which of the following statements is(are) true? I. Many firm experience a life cycle characterized by non-constant growth. II. F
Genrish500 [490]

Answer: both I and II are TRUE

Explanation:

Many firm experience a life cycle characterized by non-constant growth. And For non-constant growth firms, stock price is not equal to the present value of all future dividend payments.

7 0
3 years ago
Read 2 more answers
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