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2 years ago

Why a shortened or shrinking business cycle would create problems for many firms?

1 answer:

3 0

A period of economic growth (fast growth in GDP) continually ends in inflation with diverse monetary charges. This inflationary increase tends to be unsustainable and ends in a bust (recession). The most important problem of the enterprise cycle is that a recession represents a huge wastage of sources.

Business cycles are the "ups and downs" in financial activity, described in phrases of durations of enlargement or recession. Throughout expansions, the financial system, measured via indicators like jobs, production, and sales, is developing--in actual terms, with the exception of the results of inflation.

The business cycles generated through fluctuations in inventories are referred to as minor or short business cycles. these durations, which generally close about two to 4 years, are now and again additionally called inventory cycles.

Learn more about business cycles here: brainly.com/question/20335740

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Who is the current public protector of s.a?

Colt1911 [192]

<span> the current protector of South Africa is Thuli Madonsela</span>

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4 years ago

1. Jones files a lawsuit against BigMoney, LLC, a brokerage firm registered with the Securities and Exchange Commission. In the

tester [92]

Answer:

Jones is right in this lawsuit

Explanation:

Arbitration is the process by which disputes are settled between parties. When there is a disagreement between parties an arbitrator comes in to give a fair and unbiased view of the situation.

A solution that is agreed to by all parties is agreed upon to settle.

In this scenario where Jones is filing a lawsuit against BigMoney LLC for violating the Securities Exchange Act by engaging in fraudulent excessive trading, this is a violation of the law and not a dispute between parties.

So the arbitration clause is is not binding and the arbitration clause should be nullified.

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3 years ago

Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to unce

gizmo_the_mogwai [7]

Answer:

The increase in reserve will ultimately lead to an increase in the money supplied.

Explanation:

From the scenario under study, the bank is greeted with uncertain economic realities. To cope with this, the bank resolves that rather than lend out excess reserves, it should rather increase the percentage of deposits held as reserve from 10% to 25%. Thus, this leads to a multiplier effect. And the reserve ratio from the forgoing is 1 to 4. That is, 1/10 to 1/4. Meaning there's a reduction in multiplier effecf of 10 to 4. And looking critically, this is a reciprocal of the new reserve ratio of 1/4

When bank hold more reserve, the ripple effect is that the Fed would buy more bonds. To increase the money supply by $200, however, the Fed will need to get a bond of $50.

The implication of this is that the bank reserve will rise in same amount. But taking the multiplier effect into cognizance, a small multiplier will be occasioned in form:

$50 * 4= $200.

Effectively, we have increased the money supply by $200, owing to the multiplier effect.

7 0

4 years ago

Read 2 more answers

Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c

Oksanka [162]

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

EPS = net Income - dividends/ oustanding Shares

=906000-480180/200000

=$2.1291/$2.13

Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

5 0

4 years ago

employees earn vacation pay at a rate of one day per month. During December, 35 employees qualify for one vacation day each. The

Blababa [14]

Answer:

Listed below are a few transactions and events of Maxum Company.

1. Employees earn vacation pay at a rate of one day per month. During December, 35 employees qualify for one vacation day each. Their average daily wage is $160 per employee.

2. During December, Maxum Company sold 4,500 units of a product that carries a 60-day warranty. December sales for this product total $125,000. The company expects 7% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $10.

Prepare any necessary adjusting entries at December 31, 2017, for Maxum Company’s year-end financial statements for each of the above separate transactions and events.

Vacation benefits expense

= number of employees × number(s) of day × the average daily wage per employee

Given,

number of employees = 35

number(s) of day = 1

The average daily wage per employee = $160

= 35 employees × 1 day × $160

= $5,600

Warranty expense

= number of units of products sold × percentage of the units for warranty × the average repair cost per unit

Given,

number of units of products sold = 4500 units

percentage of the units for warranty = 7%

The average repair cost per unit = $10

= 4,500 units × 7% × $10

= $3,150

P.S. The attached image duly shows the answer.

4 0

3 years ago