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klio [65]
3 years ago
11

3. Earning of profit is regarded as the main objective of business? Explain by giving any 3reasons

Business
1 answer:
netineya [11]3 years ago
3 0
Profit maximization is usually a main aim of most businesses in the private sector.

1) Usually people invest personal savings into starting businesses so that the return (aka profits) can be greater than the investment and they can earn a better living.

2) If profit is earned then the business would have enough money to pay dividends to its investors/shareholders, otherwise it wouldn’t have enough money to give as dividends and it will lose its investors.

3) Profit is required for the business to survive in competitive markets.
You might be interested in
Jack has $1,000 to invest. He has a choice between municipal bonds with an interest rate of 4% or corporate bonds with an intere
neonofarm [45]

Answer:

Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%

Explanation:

Hi, the formula to find the after-tax rate of return of any taxable income is as follows.

r(AfterTax)=r(BeforeTax)*(1-Taxes)

Therefore, in the case of the municipal bond.

r(AfterTax)=0.04*(1-0.25)=0.03

So, the after-tax rate of return of the municipal bond is 3%.

And for the corporate bond is.

r(AfterTax)=0.06*(1-0.25)=0.045

And the after-tax rate of return of the corporate bond is 4.5%.

It means that taxes on municipal bonds are:

Taxes= Return(BeforeTax)-Return(AfterTax)

In the case of municipal taxes:

Taxes=0.04-0.03=0.01

1% taxes for municipal bonds

In the case of corporate taxes:

Taxes=0.06-0.045=0.015

1.5% taxes for corporate bonds

Best of luck.

7 0
4 years ago
A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf ga
riadik2000 [5.3K]

Answer:

Play miniature golf instead of renting the movie.

Explanation: Marginal utility is the added satisfaction derived from spending an extra unit of money.

Now we can see that the consumer values time at $12 per hour, and they'll spend a total of $24 on watching the DVD because this will take 2 hours, the consumer will also spend just $12 on miniature golf because this takes just one hour.

Now factoring the costs of the DVD and the miniature golf into the equation, we have:

Total cost of renting and watching the DVD:

$4 + $24 = $28

Total cost of playing miniature golf:

$13 + $12 = $25

We can see that the consumer will spend less in playing miniature, while getting the same marginal utility with the other option.

3 0
3 years ago
When commercial banks need more Federal Reserve Notes, Question 16 options: they call the Bureau of Engraving and Printing, whic
romanna [79]

Answer:

they call their Federal Reserve District Bank, which delivers the requested amount.

Explanation:

The Federal Reserve System (popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America, which are commonly referred to as Federal Reserve District Bank.

The Fed provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."

Hence, when commercial banks such as the regular banks in societies need more Federal Reserve Notes, they call their Federal Reserve District Bank to deliver the requested amount to them.

Additionally, currency in circulation includes all of the US paper currency (dollar bill) that are available in the country while reserves refers to the minimum deposits being held for the U.S Treasury and depository financial institutions by the Fed.

5 0
3 years ago
A married couple, ages 55 and 52, with no children, are both employed at DEF Corporation. They have asked for an evaluation of t
posledela

Answer:

B. The portfolio should be reallocated based on their stated investment objective, reducing the cash and bond percentage by 50% and using the proceeds to buy a small or mid-cap growth mutual fund

Explanation:

Since this couple has stated investment goal of development with moderate hazard, a portfolio that just has about 25% values and that has 75% fixed pay protections is improper - since it will give pay; yet little development. The long haul bond and money designation ought to be decreased and supplanted with development stocks to more readily adjust the portfolio. Decision C is unreasonably theoretical for a "preservationist financial specialist." Choice D is to some degree valid since this couple is putting resources into their manager's stock - yet since the stock just speaks to 8% of the client's all out portfolio, this isn't a too much enormous rate.

4 0
3 years ago
The arguments for restricting trade
katen-ka-za [31]

Answer: (A) Unfair competition argument

Explanation:

  The unfair competition argument is one of the type of common argument that helps in applying while taking various types of unfair decisions in an organization.

It is one of the intellectual branch that basically substitute the competitor's products and the items in the market by using the deceiving techniques or methods.

According to the given question, Lobbyist is basically using the various types of Unfair competition arguments for the purpose of argue for the trading restriction on the steel rods as the foreign producers are using their unfair benefits over the domestic manufactures.      

Therefore, Option (A) is correct answer.

6 0
3 years ago
Read 2 more answers
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