Answer and explanation:
Inflation is the increase in prices of goods or services over time. Under this scenario, consumers' purchasing power decreases. Typically, under inflationary stations, the government tends to intervene as a regulator of the market increasing interest rates to offset the economic phenomena.
The most likely result of inflation is the <em>increase in prices of the overall market but it also causes investments to fall and unemployment to rise</em>.
Answer:
D.
Explanation:
Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.
Answer:
Which non-cash expense is added back to the net profit in the indirect method of preparing a cash flow statement? DEPRECIATION
The indirect method of preparing a cash flow statement adds a non-cash expense, such as DEPRECIATION and or AMORTIZATION, to the net profit.
Explanation:
Cash flow statement is a statement of account or financial statement prepared by firms or organisations that shows how money comes or flow into a company. It also shows the amount of money that a company receives from sales of their goods and services.
Cash flow statement also shows us the money invested my the company in outside ventures which is used for generating revenues for the company.
There are two methods of preparing Cash flow statements
a. Indirect method.
b. Direct method
The indirect method of preparing a cash flow statement involves stating the net income of the firm and then adding back non cash expenses such as Depreciation, Amortization back to the net profit. After which the determination of the actual inflow or outflow of cash from firm in carried out.
A permit gives authorization to allow someone to do something.
A license allows the use of something or to allow an activity.
A loan is to borrow (money or property)
A patent is the right granted by government to an inventor to sell, manufacture, or use an invention for a certain number of years.
Which means the answer would be D. Patent
Answer: The four main ways a business may increase it's profit are through reducing costs, increasing turnover, increasing productivity, and increasing efficiency.
