Answer:
The correct option is A
Explanation:
Capitalization is the term or the process in which there is an addition of the interest which is unpaid to the principal amount of the loan. And the principal or the original amount of the loan increases or rises when the payments got postponed during the deferment periods and then the interest which is unpaid is capitalized.
So, it will be capitalized whether or not there is particular or the specific amount of borrowing for the construction.
Answer: Option (A) is correct.
Explanation:
Correct option: Earn positive profits in the long run.
All the industries that operates in a monopoly, oligopoly and monopolistic market conditions are generally having positive profits in the long run.
These industries can earn positive profits because there are high restrictions on the entry of the new firms. This is the case of monopoly and oligopoly. But in monopolistic competition, there are many firms in the market and the firms in this market condition can have a positive profits in the long run. There are comparatively less barriers on the entry of the new firms.
Answer:
This is an escrow transaction. An escrow is an arrangement where a third party (ABC Escrow) holds funds for a given transaction between other two parties.
The Van Horns are the grantees in this transaction.
The escrow is responsible for the safe keeping of the funds, in order to avoid any type of loss or fraud.
Answer
- A) Capital budgeting
- B) Capital Structure
- C) working capital management
Explanation:
- Capital Budgeting: The new product requires investments, therefore businesses are more likely to evaluate the decision of preceding it. So, in brief, it's a method used by companies to assess if a new product should be introduced or not.
<em>Since</em> the company has opted to launch the new product, it has made a capital budgeting decision. In which the company has assessed the risks, benefits and costs associated with the product.
Capital Structure: As the name reflects, businesses have a structure which is a mix of debt + equity to finance the company. Company obliges to identify that where it's investment would come from by assessing its capital after the new product decision is made.
<em>Hence,</em> when company sells it's stock, it is basically creating an investment for its new product.
Working capital management: A process through which companies ensure efficient and effective operations by assessing and managing their working capital. Working capital includes current assets (highly liquid assets) and liabilities.
<em>Therefore,</em> when the company sets its inventory and production levels, it is trying to make its production efficient and effective with sufficient inventory at hand.
Economists can measure physical capital in a country by unconventionally assessing the size of the employed population and their level of education which though not necessarily a conventional type of physical capital still it is essential to activate the inanimate physical capital. Conventional physical capital could be natural resources like forests, mineral deposits, and fisheries but more likely would mainly include man-made machines like tractors for farms, trucks for trucking produce, trains, factories, mine buildings and crushers etc.
