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devlian [24]
3 years ago
14

Suppose a firm occasionally faces demand for short-term credit but usually has an excess of short-term capital to finance curren

t assets. Which approach is the firm following? Conservative approach Maturity matching approach Aggressive approach Which usually costs less—short-term or long-term debt? Long-term debt Short-term debt
Business
1 answer:
nadezda [96]3 years ago
8 0

Answer: Conservative approach; Short term debt

Explanation:

Conservative approach is used by a company to maintain a level of current assets that is high which invariably leads to higher working capital. This is used by a firm that occasionally faces demand for short-term credit but usually has an excess of short-term capital to finance current assets.

Short term debts typically costs less than the long term debts as it's for a shorter duration.

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a. Tara buys only shoes and socks. When the price of shoes goes up, Tara continues buying exactly the same number of socks as be
babymother [125]

Answer: False

Explanation:

Shoes and socks are complementary goods. A complementary good is a good that the demand for the good increases when there is reduction in price of its complement. Complementary goods have a negative cross elasticity of demand i.e. the demand for the good rises when the price of the other good decreases. Assuming "A" is a complement to "B" , a rise in the price of "A" will have a negative effect on the demand for "B".

A reduction in the price of A leads to a positive outcome on the demand for B resulting in an outward shift of its demand curve. The quantity demanded of one good has a direct relationship on the quantity demanded of the other good as they are linked together. When the price of shoes increases, less of socks will be demanded and vice versa.

5 0
3 years ago
The National Council of Small Businesses is interested in the proportion of small businesses that declared Chapter 11 bankruptcy
Arlecino [84]

Answer:

n = 150.06

Explanation:

Since the confidence c = 95% = 0.95

α = 1 - 0.95 = 0.05

\frac{\alpha }{2} = \frac{0.05}{2}=0.025

z score of 0.025 is the same as the z score of 0.5 - 0.025 = 0.475

From the probability table, z_{0.025}=z_{0.475}=1.96

Also E = 0.08

Therefore the sample size n is  given by:

n = \frac{1}{4}(\frac{z_{0.025}}{E} ) ^2=\frac{1}{4} *(\frac{1.96}{0.08})^2 =150.06

n = 150.06

The sample must be at least 150.06  to be 95% sure that a point estimate will be within a distance of 0.08 from p

3 0
3 years ago
For this assignment, you will produce a marginal cost analysis graph and create a scenario that explains where the firm should s
Kamila [148]

well what you can do first is

4 0
3 years ago
The following information was taken from the accounting records of Light Tool Corporation. Work in process inventory, beginning
Natali [406]

Answer:

47,250  

Explanation:

The manufacturing costs in the year is the sum of work in process inventory, at the beginning of the year, the cost of direct materials, the direct cost of labor and the overhead assigned to production as computed thus:

manufacturing costs=50,000+260,000+135,000+500,000

manufacturing costs=945,000

amount of the work in process inventory on hand at year-end=manufacturing costs-cost of finished goods manufactured

amount of the work in process inventory on hand at year-end=945,000-897,750= 47,250  

7 0
3 years ago
If a firm reduces the price of its product from $6 to $4 and the quantity demanded of the product increases from 45,000 to 55,00
vivado [14]

Answer:

The correct answer is

B. –0.5

good luck ❤

8 0
4 years ago
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