Raw materials transform finished goods into cash.
Answer:
<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>
Explanation:
- As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.
- Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
- Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
Answer:
Bait and Switch
Explanation:
Bait and switch is a deceptive sales technique that draws customers in with the promise of low prices and then "switches" to say that the promised item is not available. It is actually illegal under <em>some </em>circumstances in the United States.
Answer:
Should Marston Manufacturing Company accept or reject the project?
Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.
Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.
Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).
Explanation:
Division H's risk = 14%
Division L's risk = 8%
WACC = 11%
