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viva [34]
3 years ago
5

Because the liquidity-preference framework focuses on the:

Business
1 answer:
snow_tiger [21]3 years ago
8 0

Answer:

B. Short run, it assumes the interest rate adjusts to bring the money market to equilibrium

Explanation:

This theory is explained to be a model that suggests that an investor should demand a higher interest rate or premium on securities with long-term maturities that carry greater risk because, all other factors being equal, investors prefer cash or other highly liquid holdings.

According to this theory, which was developed by John Maynard Keynes in support of his idea that the demand for liquidity holds speculative power, investments that are more liquid are easier to cash in for full value. Cash is commonly accepted as the most liquid asset. According to the liquidity preference theory, interest rates on short-term securities are lower because investors are not sacrificing liquidity for greater time frames than medium or longer-term securities.

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g Which of the following are the three factors used to determine a company's credit rating? Its current ratio, its debt-to-equit
NISA [10]

The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.

<u>Explanation:</u>

  • A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.  
  • A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.  
  • The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
  • The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.   

8 0
3 years ago
Which statement regarding strategies is true?
Iteru [2.4K]
<span>"C. Strategies facilitate objectives" This is true because there's a series of objectives that must be completed within any strategy, and the other options can be true however not for every strategy.</span>
5 0
4 years ago
"Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing
Pepsi [2]

Answer:

The technology is a support activity in a firm's value chain.

Explanation:

Value chain analysis means the analysis which adds the value to the organization. It can be categorized in two activities - primary activities and support activities. This value chain analysis is propounded by Porter.

The primary activities includes inbound & outbound logistics, operations, Marketing & sales and service whereas support activities includes firm infrastructure, human resource management, technology , and procurement.

Thus,  the technology is a support activity in a firm's value chain.

4 0
3 years ago
Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and benefits. The comp
Lerok [7]

Answer:

The correct answer is comparable worth.

Explanation:

Comparable worth is a legal concept that applies to workplaces. In essence, this concept argues that all jobs or positions that are considered by the employer of similar value must be compensated in the same way, regardless of the gender of the employee. In some places, this concept of equal pay for work of equal value is also about inequality in remuneration based on race or sexual orientation. At its heart, comparable value focuses on ensuring that people who are contributing to acceptable levels for a business or other organization are compensated equally and without any prejudice or discrimination.

6 0
3 years ago
Four perspectives are integrated to form the balanced scorecard framework. the financial perspective focuses on the view of the
Andreas93 [3]

Four perspectives are integrated to form the balanced scorecard framework. the financial perspective focuses on the view of the firm by the customer.

The four perspectives of the Balanced Scorecard are Learning and Growth, Business Process, Customer Perspective, and Financial. These four areas, also called legs, form the company's vision and strategy.

A strategy-based performance management system that typically identifies goals and actions from four different perspectives: financial perspective, customer perspective, process perspective, and learning and financial perspective.

The Balanced Scorecard helps you strategically manage your organization. The Balanced Scorecard is based on four perspectives including financial, business process, customer, and organizational capabilities. This allows companies to discover their shortcomings and develop strategies to overcome them.

Learn more about financial perspective at

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5 0
2 years ago
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