Answer:
The correct answer is it makes price higher so demand falls, creating excess supply.
Explanation:
In a price floor, their is a floor limit on price. The price level cannot go below this limit. At high price the consumers will demand less, following the law of demand. While the suppliers will supply more, following the law of supply.
So, the supply will be greater than demand creating surplus quantity in the market.
Answer:
Hedge funds are: high risk, even though they may be market-neutral.
Answer:
Business plan necessary because:
•It make you aware of your strength or weakness.
•It also creates an effective strategy for growth.
•It helps to determine your future financial needs.
•It also helps to gain a deep understanding of your market.
Answer:
Part a.
Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Accounts Receivable Turnover rate 10 14.98
Part b.
Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Day's sale outstanding 36.5 24.36
It is called living frugally.
