Answer:
That low income can be enough because of either one of these two reasons (or the two at the sime time):
- A high proportion of subsidized good for low-income earners in developing countries: a consumer making $1,000 per year on average could benefit from subsidized food, housing, healthcare, and even transportation, allowing this person to devote most of his income to other expenses.
- Cheap credit available: this same person could not have enough money to pay for the television in cash, but could easily obtain a credit with low interest rates, and long-term payments.
Answer:
At Yield to maturity = 11%
Price = $1,000
Explanation:
As for the provided information we have:
Par value = $1,000
Interest each year = $1,000 
11% = $110
Effective interest rate semiannually = 11%/2 = 5.5% = 0.055
Since it is paid semiannually, interest for each single payment = $110 0.5 = $55 for each payment.
Time = 8 years, again for this since payments are semi annual, effective duration = 16
Price of the bond = 
Here, C = Coupon payment = $55
i = 0.055
n = Time period = 16
M = Maturity value = Par value = $1,000
Therefore, if yield to maturity = 11% then,
P = 
= $1,000
Answer:
E. $148,600
Explanation:
Cash flow from operating activities.
Net income. $134,000
Add: Depreciation. $30,000
Less: Gain on sale ($4,000)
Changes in working
Capital
Add: decrease in
Accounts receivable $9,400
Less: increase in
Merchandise inv. ($18,000)
Less: increase in
Prepaid expenses ($6,200)
Add: increase in
Accounts payable $3,400 ($14,600)
Net cash provided used by $148,600
Operating activities
Answer:
Option (b) is correct.
Explanation:
In a market condition of pure competition, there are large number of buyers and sellers of the product. The sellers in this market condition are behaving like a price taker.
If a single firm wants to increase the price of the product then as a result the demand for their product is reduced or become zero.
There are some characterstics of the firms under pure competition market condition:
(i) They are selling homogeneous products.
(ii) Price taker firms
(iii) Large no. of buyers and sellers
Answer:
A group bonus system
Explanation:
In relationship-oriented cultures, group bonuses are very common, and they are not like the regular yearly bonuses given out at Christmas, specially in Japan. In Japan, there are two bonuses per year, one paid during mid-year and the other one at the end of the year. These bonuses can amount to 3-6 months worth of salary, but they are also paid to the whole group of workers. That means that either everyone in the team gets a bonus or no one does.
Relationship-oriented cultures are based upon the well being, motivation and satisfaction of the whole team.
