Answer:
D. international diversification
Explanation:
The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.
The effect of international diversification on capital structure can be explained through
1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.
2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.
3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.
I would solve it like this:
15 / 3 = 5
5 Pizzas would be needed for each person to eat 1/3 of a pizza.
Hope this helps!
<span>The question is asking which market structure has a single company or seller in a market with many barriers to entry and the answer is
C. Monopoly. A monopoly is a situation where only one company has a chance to sell their products. Think for example about a national post company that is the only company that has the right to enter people's houses and access their mailbox- this is an example of a monopoly.</span>
Answer:
The correct answer is option b.
Explanation:
The problem of scarcity of resources is the basic problem in the study of economics. This problem exists because the resources are limited and have alternative uses. These resources are used to satisfy unlimited wants and needs.
So we need to determine the efficient allocation of these scarce resources such that we are able to get maximum satisfaction or utility from them.
Because of this scarcity problem, every economic decision involves some trade-off.
Answer:
C) Yes: The one-week measures show demand is elastic, so a price increase will reduce revenues.
Explanation:
The error that the Manager did was to under-estimate the principles of elasticity of demand that posits that increase in price is inversely proprtional to demand. Perhaps, she also overrated the quality of their services without given thoughts to the presence of competition and customers’ decisions in a competitive market.
The survey carried out was a proof of the fact that price increase had an inverse effect on the demand for the services, as was shown by the rate of decline in the number of customers who enrolled in Verizon's cellular plans especially in those states where they had the best of customers’ loyalty.
