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Phoenix [80]
2 years ago
14

What is an example of an external force that represents financial factors affecting a business?

Business
1 answer:
liq [111]2 years ago
4 0

Interest rates are an example of an external force that represents financial factors affecting a business

This is further explained below.

<h3>What is business?</h3>

Generally, The process of operating a company, which includes the creation of items in addition to their acquisition and sale, may provide a person with a means of subsistence or enable them to generate monetary gains.

In addition to this, it may be used to refer to "any activity or corporation that is involved in for the purpose of profit."

The term "financial factors" refers to financial policies, financial conditions, and capital structure.

Financial factors are an important internal component that has a great impact on the operation and performance of the corporation. In order to launch and maintain the company, you will need access to sufficient financial resources.

In conclusion, The rate of interest is one example of an external force that is representative of the many financial forces that influence a company.

Read more about Interest rates

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An increase in ROE would imply an increase in shareholder wealth. Based on your understanding of the uses and limitations of ROE
Sonja [21]

Answer:

The correct answer is the second option: A high ROE and low risk.  

Explanation:

To begin with, the concept of <em>"Return of Equity"</em> or ROE refers to a measure used in the field of business that mainly focus in the relationship between the profits and the equity of the company and therefore that it shows how profitable the company is regarding the amount of its equity. Moreover, this measure  focus on the amount of dollars that the company gains regading the amount of equity that the company uses. Therefore that a rational investor is likely to prefer an investment option that has a high ROE and low risk at the time of taking the decision.

6 0
4 years ago
Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $
Temka [501]

Answer: $2,940,000

Explanation: Weighted Average Accumulated Expenditure is the product of the amount incurred multiplied by the no of months its being capitalised.

on March 1st $ 2,520,000 was incurred = 10/12*2,520,000=2,100,000

on 1st June $1,680,000 was incurred = 6/12*1,680,000= 840,000

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Total Weighted Average Accumulated Expenditures = 2,100,000+840,000

= $2,940,000

6 0
4 years ago
Read 2 more answers
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