When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should increase the initial project cost by dividing that cost by (1-0.068). The flotation cost is the cost which emerge when a corporation gather its fund by issuing new securities. Underwriting fees, legal fees, registration fees are the common fees that will increase corporate's expense when they issue securities. Therefore, we can consider those fees as a flotation cost.
Answer: (C) Perceived value
Explanation:
The perceived value is the term which is basically refers to the marketing terminology in which the users or the consumers evaluates the products and the services ability so that it meets their specific requirement and the needs.
According to the question, Stanley is basically purchasing the pen based on the perceived value based on his expectations. It is also helps in analyzing the actual quality of the given products by comparing with the other brands.
Therefore, Perceived value is the correct answer.
Answer: A) Prototype
Explanation:
The first model shown to entrepenuers are called prototypes
proto- before
Answer:
Option (B) is correct.
Explanation:
1 pound = $1.60
1 pound = $1.50
So, there is a depreciation in the value of pound relative to the dollar and appreciation in the value of dollar relative to the pound.
Now, suppose a resident of united states purchase some quantity of goods(say, 20 shirts) from the seller in United kingdom.
Price of each shirt = 2 pounds
Hence,
Before the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.60)
= 20 × 3.2
= $64
After the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.50)
= 20 × 3
= $60
Hence, the amount paid by the resident of united states reduced because of the fall in exchange rate. Now, they have to pay less for the same amount of commodities. This shows that there is an appreciation in the currency of US relative to UK.
The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business. Higher take-home pay.
Tax relief on business expenses.
Greater opportunity for tax planning.
Total control of your business and name.
One company for all your business interests.
Limited liability and protection of personal assets.
