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3 years ago

What are some of the reasons businesses fail?

Business

1 answer:

Mekhanik [1.2K]3 years ago

7 0

Answer:

The most common reasons businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

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I’ll mark the best one with 20 points !

bonufazy [111]

Answer: rotate the bottom to the right, top to bottom and right to top

Explanation:

5 0

3 years ago

On July 1, an investor holds 50,000 shares of a certain stock. The market price is $30 per share. The investor is interested in

Yakvenalex [24]

Answer:

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

Explanation:

Provided information;

Amount of shares of a certain stock =50,000

The market value per share = $30

Portfolio value= P = 50,000 × 30 = $1,500,000

Beta of stock β = 1.3

current Index futures price = 1,500

Multiplier = $50

Futures Value A = 1,500 × 50 = $75,000

The formula used in calculating the number of contracts =

Number of contracts N = (β × P) ÷ Future values

N = (1.3 × $1500000) ÷ $75000

N = $1950000 ÷ $75000

Number of contracts N = 26

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

5 0

3 years ago

Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia

erastova [34]

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

= $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

= $53,900

total assets = current assets + net fixed assets

= 53,900 + 391,500

= 445,400

Then:

ROA = 53,900/445400

= 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

= 0.041763/0.958237

= 4.36%

Therefore, The internal growth rate is 4.36%

7 0

3 years ago

Which sentence best explains the mistake Maggie made? Her mortgage payments are high, and some months, she earns barely enough t

blondinia [14]

Answer:

She failed to properly assess her risk of storm damage.

Explanation: Edge 2021

4 0

3 years ago

Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl

ElenaW [278]

Answer:

Karim Corp

Cash Budget

July August September

Cash inflows: $20,000 $26,000 $40,000

Cash outflows: ($28,000) ($30,000) ($22,000)

Monthly cash flow: ($8,000) ($4,000) $18,000

Monthly interests: $0 ($76) ($116.76)

Initial cash balance: $8,400 $8,000 $8,000

Ending cash balance: $400 $3,924 $25,883.24

Required bank loan: $7,600 $4,076 $0

Payment of bank loan: $0 $0 ($11,676)

Total $8,000 $8,000 $14,207.24

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

4 0

3 years ago