Answer:Flour should be acquired through a contract.
Explanation: Acquiring flour through a contact will be very important for DonutVille as it will ensure a follow-up and a feedback system where the manager of DonutVille establish a relationship with the company supplying the flour through one of its distributors or agents.
When purchasing of flour is achieved through a contact, it makes the contact a responsible person who will be needed to guarantee the supply of flour on time and to Communicate with the manager of DonutVille should there be any matters arising in the process getting supplies.
A creditor is someone that gives or provides credit to a person or to a company. This someone an either be a person, a bank or a supplier in which they want to owe someone their money. This someone is called the creditor. The amounts or the money owed to the creditor are recorded in a company's balance sheet. When the time came for the creditor to pay the amount, then that will be the payment creditor.
B.) It grows savings at a faster pace.
The interest rate determines how much money a bank pays you to keep your funds on deposit. Suppose you deposit $5,000 into a savings account, don’t deposit or withdraw any more money and the interest rate doesn’t change. If the account has a 1.00% interest rate and the interest compounds annually—that is, the bank pays you interest on your balance once each year—you’ll earn $50 after the first year. -Discover.com
Answer:
ROA= 8%
Explanation:
Return on assets is defined as the revenue that an asset generates in a particular period.
ROA shows how efficiently a manager is generating income from the companie's assets.
The formula is
Return on asset = Net income ÷ Ending Assets
Net income= $800,000
Ending asset= Price of shares * Number of shares
Ending asset= 50 * 200,000 = $10,000,000
ROA= 800,000 ÷ 10,000,000
ROA= 0.08= 8%
A ROA of above 5% is considered o be a good return on investment
Answer:
The most applicable answer from my point is in such a scenario, producers overproduce the product because of a supply-side market failure.
Explanation:
So what is market failure? Simple, Market failure occurs when a market is unable to effectively and efficiently manage its resources because of the breakdown of price mechanisms functions which rare caused by negative and sometimes positive externalities.
In here, Supply side market failure occurs when the producers don't have to pay the full cost of their output. That is the actual cost of production is greater that the recorded cost.
In Market failure, the supply and demand of the market do not meet the equilibrium price and quantity and eventually leads to the loss of social welfare and ineffective economic decision making.
Imperfect information in the market and the increase of power in the sellers side could lead to supply side market failure.
