Answer:
An extractive economy
Explanation:
An Extractive economy can be defined as a resource based economy that is based on mining or producing raw materials to be used in foreign industries. This natural resources can be exported for sale in other foreign countries which help to boost economy, growth and development.
All investment strategies do involve some level of risk. Considering the evidence at my disposal, the first investment is made in the investment opportunity that is most likely to be fake.
The real dangers of investing with this company are those associated with land, stocks, goods, or legal disputes.
What potential profits may I expect from my investment?
The investment's projected return, or what we refer to as the potential return, has the potential to generate significant profit or loss.
Keep in mind that it is regarded as a type of computed metric that enables investors to determine the possible profit an investment may receive; in the example above, it may result in greater profit or loss.
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Answer:
Answer B.
Explanation:
EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.
