Answer:
the purchasing power of the money increased
Explanation:
first we must calculate the future value of the money that was lent:
future value = present value x (1 + interest rate) = $680 x 1.03 = $700.40
if we want to know if the purchasing power of our money remains the same or not, we must discount the future value of the loan using inflation rate as the discount rate:
present value = future value / (1 + discount rate) = $700.40 / 1.02 = $686.67
the net present value of our loan = $686.67 - $680 = $6.67, so the purchasing power of our money increased
Answer:
The correct answer is letter "D": Foreign firms receive financial support from host-country governments.
Explanation:
Governments assign in their budgets different amounts for domestic investment. A problem arises when the complexity of the work demands <em>technology </em>and <em>know-how</em> that the domestic industry does not provide or lacks experience. In such scenarios, foreign entities are invited to take care of the projects but, by doing this, governments promote foreign financial expansion instead of domestic industry growth.
<em>That is the reason why in many cases host-country competitors claim governments contribute financially with foreign firms.</em>
The process of measuring and reporting financial data by responsibility center (option c) well describes responsibility accounting.
Explanation:
The cost of production is closely monitored by all the departments running in the company. It can be controlled only in the process of accounting records all the data of budget forecasting and future recommendations. Every month all the officials from different business sections need to provide financial data. Such operations of all the divisions are collectively called as responsibility center.
The control of the budgeting process lies helps the finance department to fix the parameters for avoiding overhead costs. It mainly acts as a planning source to take an abrupt financial decision to reap more profits against cost constraints which may hinder the financial growth of the business.
A larger vehicle has higher kinetic energy so it needs a longer time to release this energy because it has more so therefore increasing its stopping distance