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3 years ago

1. Discuss the following statement: "Corporations are not really run by their owners."

1 answer:

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1. Discuss the following statement: "Corporations are not really run by their owners." Corporations are run by everyone who works for the corporation and without everyone working together, it will not run smoothly and bring in revenue.
 
2. Why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation? If an investor decided to join in a limited partnership instead of purchasing the stock on an open corporation they would have less to do with the business side as they would in an open corporation. When an investor joins in a limited partnership they have less management responsibility and little to no liability besides their initial investment.
 
3. Is growth a good thing for all firms? How does management know when a firm is ready to grow? Growth is not a good thing for all firms. Depending on what a company is looking to achieve long term, the financial assets they have now to achieve their growth and other goals are all subject to what the company is able to do with the finances and staffing they have. When a corporation is trying to decide whether or not they should grow, management will examine all aspects of the company to make sure they align with the growth plan.
 

4. If you were to start a business, which ownership form would you choose? What factors might affect your choice? If I were to start a business, I would probably choose a limited liability company (LLC) as the ownership form and structure. An LLC is where the members within the company are not held personally liable for the company’s debts or liabilities. Think ownership form works well if you were to join forces an open up a business with a friend or family member. An LLC keeps the tax side of the business easier as allowing the individuals to be self-proprietors. When considering factors that may change this decision they would include: who I am going in business with, what I am in business for, my end goals, current goals and current financial status.

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Other things the same, when the interest rate rises, people would want to lend Group of answer choices less, making the quantity

Ahat [919]

When there are a shortage of loanable funds and the interest rate rises, the quantity required exceeds the amount supplied, and the interest rate rises.

<h3>What happens if the interest rate in the economy rises?</h3>

Businesses and individuals will cut down on spending as interest rates rise. Earnings will suffer as a result, as will stock values. Consumers and corporations, on the other hand, will boost spending when interest rates have decreased dramatically, leading stock values to climb.

The availability of loanable funds indicates that as the interest rate rises, the amount of savings accessible will rise as well.

As a result, anytime interest rates rise, the economy will see a sudden and unexpected surge in borrowing costs.

Learn more about interest rates:

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2 years ago

Lynn, the manager of a transportation company, goes through the product delivery schedule. She assigns territories to each execu

Vsevolod [243]

Answer: Outbound logistics.

Explanation:

Outbound logistics involves storing finished products and transporting them to the consumers in the various target markets. Lynn is in charge of supervising the outbound logistics of her company, she does so by assigning routes to distributors in her company.

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3 years ago

For which pairs of goods is the cross-price elasticity most likely to be positive? a. peanut butter and jelly b. bicycle frames

Levart [38]

Answer: d. Pen and pencils.

Explanation:

Cross-price elasticity measures the degree of responsiveness of the demand for a certain good towards the change in the price of a related good. Percentage is used to measure cross-price elasticity.

In case of two goods like pens and pencils, cross price elasticity is positive. That is, if the price of a pen increases, it will lead to an increase in the demand for pencils. The propertional change in price of pens give a positive relative change in the demand for pencils.

3 0

3 years ago

Read 2 more answers

The firm's target capital structure should do which of the following?

inysia [295]

Answer:

e. Minimize the weighted average cost of capital (WACC)

Explanation:

A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.

B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.

C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.

D: It is out of question because target capital structure cannot obtain the bond rating.

E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.

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3 years ago

Which action best reflects the influence of John Maynard Keynes? O A. A business lobbies a government to reduce its overall tax

Sidana [21]

Answer:

Which action best reflects the influence of John Maynard Keynes?

B. A government gives jobs to workers during an economic recession.

Explanation:

John Maynard Keynes was a The British economist who strongly and vehemently advocated for "increased government expenditures, lower taxes, government offering full employment, and government intervention in economic activities" in order to stimulate demand, pull the economy out of recession, and kickstart it from slump. He is known as the father of Keynesian Economics.

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3 years ago