Answer: Yes it is
Explanation:
The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.
If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.
Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.
A Small business is defined as a business that is independently owned and operated and is not dominant in its field of operations.
Answer:
Customer Lifetime Value
Explanation:
Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.
It is a predictor of how well you are doing to retain your existing customers.
Why is it important?
suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.
$
Subtract the advertising cost
$ This is your customer lifetime value
Now imagine what would have happen if we had to sell these belts to 75 different customers?
The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.
$
$
This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.
Answer:
(A)Fv= $864.2
(B) Fv= $1302.05
(C) Fv= $2003.4
(D) Fv= $96817.21
Explanation:
Giving the following information:
Initial investment= $550
We will use the final value formula:
FV=Present value*(1+i)^n
(A) 9% compounded annually for 5 years.
Fv= 550*(1.09)^5=$864.2
(B) 9% compounded semiannually for 5 years.
Fv= 550*(1.09)^10= $1302.05
(C) 9% compounded quarterly for 5 years.
Fv= 550*(1.09)^15= $2003.4
(D) 9% compounded monthly for 5 years.
Fv= 550*(1.09)^60=$96817.21
Answer:
$10,500
Explanation:
Bee Inc.
Cash Budget for March
Budgeted Receipts $116,000
Les Budgeted Expenses ($110,000)
Net Cash $6,000
Add Budgeted Beginning Balance $35,000
Balance $41,000
Loan ($51,500 - $41,000) $10,500
therefore,
To attain its desired ending cash balance for March, the company needs to borrow $10,500
