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ipn [44]
3 years ago
12

Why is the profit motive considered an incentive in a market system?

Business
1 answer:
dsp733 years ago
7 0
Inventive is to make more money because businesses can make more profit where money is expected.
Minimize costs and maximize revenues. .
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Which of the following statements is​ FALSE? A. According to the constant dividend growth​ model, the value of the firm depends
Vedmedyk [2.9K]

<u>A. According to the constant dividend growth​ model, the value of the firm depends on the current dividend​ level, divided by the equity cost of capital plus the grow rate.</u>

This is the false statement.

<u>Explanation</u>:

The fair value of stock can be calculated using the dividend growth model. While calculating the value of the stock, the growth of the dividends should be considered either in a stable rate or at a different rate during the period at hand.

The dividend growth model is also known as a <u>valuation model</u> as it is used to achieve the value of the stock.

Equity cost is the cost that the firm owes to the equity investors to compensate the risk of their investment.

4 0
3 years ago
WoodCore Inc. produces an entire line of office furniture at its manufacturing facility in the United States and then ships its
devlian [24]

Answer: D. exporting

Explanation:

Exporting is the sale of goods to other countries apart from your own even though the goods being sold were produced in your own country.

Exporting works best when the country doing the exporting is capable of producing the goods being exported at a lower price than the country that it is sending to, that way the people in that country have an incentive to buy it over locally made products. WoodCore is producing in the U.S. and selling elsewhere. This is exporting.

8 0
3 years ago
When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capital gain. If he sells the ass
puteri [66]

Answer:

Please check the answer below

Explanation:

a. One issue is the "locking-in" of assets. If I hold shares of Corporation X, then I can delay paying taxes as long as I don't sell. Effectively, I get to keep all of the interest/dividend payments on my tax liability. However, if I discover that X is really a poor investment and Corporation Y is better, then selling X and buying Y means that I have to pay taxes. This might discourage me from making a switch to a more profitable/efficient investment decision. This is the "locking-in" effect.

b. A short-run cut might cause many people to sell stocks that they had felt "locked-in" with. The penalty for switching is smaller, so more people will do it -- resulting in a great deal of cap gains tax revenue collected.

c. Taxing realized gains, even when the stock is not sold, rather than just accrued gains would eliminate this locking-in effect. Investors would not be penalized for switching to a better investment, and long-term capital gains revenue (as well as efficiency) would rise.

6 0
3 years ago
Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers. a.
larisa86 [58]

Answer:

b. the right to be informed

Explanation:

Consumerism is a movement that aims to protect consumer's interests. The movement promotes truthful packaging, fair trade practices, truthful product guarantees, truthful advertising etc. These attributes will enable consumers to make informed decisions before purchasing products. Based on the above, option b is the correct answer.

7 0
3 years ago
_______ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. a.
alisha [4.7K]

Answer:

Market targeting.

Explanation:

Market targeting refers to the process of evaluating the attractiveness of each market segment and selecting one or more segments to enter.

To discover the overall attractiveness of the segment, there are two factors which are used in this process:

i. Attractiveness of Segment:

This feature helps to determine whether the segment is attractive or not.

ii. Objectives and Resources of Company:

This feature must analyze whether the segment is suitable in the marketing objectives or not.

7 0
3 years ago
Read 2 more answers
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