I think the main reason people buy shares of companies is to make money.
Explain:
their idea is to buy low value of things and sell high. for example, if i buy 100 shares of a company stock valued at 25$ each i will have made a total of 2,500$. if in the next few months the shares increase to $50, I can sell them for more, Like $5,000, This is doubling your investment.
Hope that helped
Answer:
The correct answer is option A.
Explanation:
When the surgeon general announces that eating apples is good for teeth, it would increase the demand for apples. The demand curve will shift rightwards. This will further lead to increase in price level. The producer surplus will also increase.
This is shown in the graph below:
When there is an increase in the demand, the demand curve moves to D' leading to an increase in the price level. It is further accompanied by an increase in the producer surplus.
The multiplier is the factor by which gains in total output are greater than the change in spending that caused it. It is used in reference to the relationship between investment and total income. Let us with C denote the change in consumption and with Y the change in income. If consumption increases by X then the <span>multiplier is</span>:
multiplier=1/1- spend
4=1/1-spend
1-spend=4 spend=-3
Answer and Explanation:
The computation of the income tax liability for each situation is given below:
a. Tax Liability on Darter Corporation is
= 21% of $68,000
= $14,280
b. Taxable liability On Owl Corporation is
= 21% of $10,800,000
= $2,268,000
c. Tax liability on On Toucan Corporation, a personal service corporation is
= 21% of $170,000
= $35,700
In this way it should be calculated
Explanation:
Net sales are favorable because the sales increase each year from the base year.
Cost of goods sold is unfavorable because the cost grows faster than sales.
Gross profit is unfavorable because it should at least grow as fast as sales.
