Answer:
c.The transactions would lower Lofland's financial strength as measured by its current ratio but raise Smaland's current ratio.
Explanation:
The current ratio compares current assets with current liabilities showing how many dollars of assets are there for a dollar of liabilities. This tells investors about the company ability to pay short-term obligations or those due within one year.
Current Ratio = Current Asset (CA) / Current Liabilities (CL)
Lofland's NOW = 20 M CA / 10 M CL = 2.00
Lofland's AFTER = 30 M CA / 20 M CL = 1.50
Smaland's NOW = 10 M CA / 20 M CL = 0.50
Smaland's AFTER = 20 M CA / 30 M CL = 0.67
Lofland's current ratio gets lower, so its financial strength as well. Instead, Smaland's current ratio gets higher and It´s financially stronger.
Answer:
See the explanation below
Explanation:
Significance of price elasticity of producers:
- useful in pricing decisions
- when demand is elastic, firms have to reduce their price to earn more revenue
- when demand is inelastic firms need to raise prices to earn more revenue
Answer and Explanation:
The steps in global strategic planning include
Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes
Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally
Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation
Establish Strategic Objectives: strategy objectives are developed to tackle new business environment
Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented
Establish Resource Allocation: resources are allocated to execute the global strategic plan
Execution Review: execution is reviewed and quantified to see if the plan is being met
Explanation:
A restaurant owner should not close the restaurant over the lunchtime. He should only do that if he is sure that he won't have any customer over lunchtime but since he has fewer of them, she should open it.
Also, it is giving him the ability to pay for some of the expenses which is also good for the restaurant.
- The only thing that he can do is to promote some of the new lunch opportunities that people can have and that can help him to increase the number of his customers during lunchtime. For example, he can promote lunch opportunities to those people who are coming for dinner time.
In the fiscal policies of governments, automatic stabilizers are meant to correct and stabilize the fluctuations that arise within the economy of nations. The policy tools that are considered automatic stabilizers are;
- A progressive income tax structure
- Government unemployment benefits
At times, the economy of a nation might experience shocks and destabilizations. These policy tools listed above are meant to generate taxes from the citizens that would cushion the effects of these shocks.
They help to increase the flow of money in the economy when it is passing through difficulties like recessions.
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