Answer:
See explanation below.
Explanation:
1. Equity: the value of a property above any loans that are owed.
2. Lease: a payment in a series that is made over a long period of time installment, to buy something on credit.
3. Finance: a legal agreement to borrow money for the purchase of a home.
4. Mortgage: a legal agreement allowing a person to use a car or property for a payment.
Questions from potential investors will be related to the functionality of the business plan presented. These questions have to be answered in a professional manner in the sense that the presenter has to be friendly and accommodating in his attitude. He should make eye contacts with the questioners. Each question should be answered with the goal of making the questioner understand the question that is bothering him or her. Answers should be given in a formal and explanatory tone that suggest that the presenter knows what he is talking about.
Answer:
The handwritten clause generally supersedes the preprinted clause.
Explanation:
Answer:
Option A. There exist economies of scope between diversified business units
Explanation:
The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.
Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.
Option B is not preferable option as the option of investing in different businesses is choosen in the option A.
Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.
<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.
