Answer:
Too little money
Explanation:
In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.
This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.
Answer:
Model Y
Explanation:
Calculation for the which model is the most profitable to produce
Using this formula
Most profitable to produce=Selling price-Direct materials-Direct labor-Variable support costs
Let plug in the formula
Model X $52 - $8 - $16- $5 = $23
Model Y $60 - $8- $16 - $10 = $26 Most profitable
Model Z $74- $8 - $33 - $10 = $24
Therefore the model that is the most profitable to produce is MODEL Y because it has the highest amount of $26
Answer:
b. The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
Explanation:
If the markets are strong form efficient, it means the consensus of the market related to future impact of FDA approval on earnings would be correct, the stock price of today correctly estimates the future earnings, and therefore the stock price would not change when the earnings are released.
