A capital gain is the return on an asset that results when its market price rises above the price an investor paid for it. A capital gain is the profit that someone receives from the sale of a property or an investment. If you invest in an item and then sell it for more than what you paid for it originally, then you have a capital gain because you profited off the item.
Answer:
1. Private ownership of factors of production
2. Freedom to engage in commercial activities
Explanation:
<u>1. Private ownership of factors of production</u>
In the US, individuals and firms are allowed to own properties. A significant percentage of the factors of production are in the hands of the private sector. Firms and individual influences the production of goods and services because they allocate resources to meet market demand.
<u>2. Freedom to engage in commercial activities</u>
Entrepreneurs have the freedom to choose the type of business they want to start. They can also select the location and the time they want to operate. There are no upper limits to firms that can participate in the market. Consumers are free to choose their suppliers. The market presents a variety of goods and services to consumers to pick from.
Answer:
Elastic demand
Explanation:
The price elasticity of demand is described as the sensitivity of demand to changes in its price. A product is price elastic when a small change in prices causes a significant change in quantity demanded. If a small change in price results in minimal impact in quantity demanded, the product is price inelastic.
Steel mill raised its prices by 7 percent. As a result, the demand declined by 20 percent. The demand decreased by a bigger rate than the change in price. It means a small change in price causes the demand to change significantly. Therefore, the demand curve is price elastic.
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
Answer:
Option (B) is correct.
Explanation:
Sales forecast = 2079 units
Ending Inventory to be maintained:
= 10% of forecast sales
= 10% (2079 units)
= 208 units
Production:
= Sales + Ending Inventory - Beginning Inventory
= 2079 units + 208 units - Nil
= 2,287 units
Taking current inventory into account, Dell's Production of 2,287 units After Adjustment have to be in order to have a 10% reserve of units available for sale.
