Entrepreneurs earn profits when consumers buy products at prices___

The primary advantage of being a limited partner is:

notka56 [123]

<h2>Maximum loss limited to their capital investment</h2>

Explanation:

As an investor there is a possibility of both profit and loss. If it is sole proprietorship, the profit or loss will be put on the his / her shoulder.

In case of limited partner, the advantage is that if there is a loss occurred it will" limit to their capital investment".

He/she enjoys "protected investments"

There will not be any huge loss since the capital invested is limited.

"A company can have more than one limited partner"

7 0

3 years ago

The demand curve facing a perfectly competitive firm is

ICE Princess25 [194]

Answer:

Option (E) is correct.

Explanation:

Under the perfectly competitive market conditions, there are large number of buyers and sellers and there is no restrictions on the entry and exit of the firms. Prices of the goods are determined by the market forces and the demand curve for a firm in a perfectly competitive environment varies significantly from the market demand curve. The demand curve is horizontal because all the goods in a perfectly competitive market are considered as perfect substitutes.

7 0

3 years ago

g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,

Amanda [17]

Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis

Details Current price Reduced price

Units Sold 100,000 130,000

Unit sales price 129 99

Sales Revenue $12,900,000 $12,870,000

Cost of Goods sold at $50 5,000,000 $6,500,000

Gross Profit $7,900,000 $6,370,000

G. Profit on Strips sold at $75 $7,500,000 $9,750,000

Total Gross Profit for the year $15,400,000 $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

3 0

3 years ago

How does gross domestic product (GDP) differ from gross national income (GNI)?

bazaltina [42]

The correct answer for the question that is being presented above is this one: "C.GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders." The gross domestic product (GDP) differ from gross national income (GNI) is that C.GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders.

6 0

3 years ago

Read 2 more answers

A managed mutual fund:

Ilia_Sergeevich [38]

Answer:

b) Has a higher expense ratio than an index fund

Explanation:

A mutual fund is a diversified investment tool. The fund is a collection of different types of stocks that form a single investment asset. It is a basket of stock trading as a single asset. Purchasing one unit of a mutual fund is equivalent to purchasing several portions of each stock that make up the mutual fund.

A professional manager manages the mutual fund. He or she carefully selects the stocks that go into the basket forming the mutual fund. The manager charges a professional fee, which is usually a percentage of the investment. Due to this fee, a mutual fund is relatively expensive as compared to an index fund that does not require the input of a manager.

7 0

3 years ago

Entrepreneurs earn profits when consumers buy products at prices____their production costs.