Answer:
Option A. Level of experience of the founders
Explanation:
The reason is that the person that possesses the experience of managing the operations of the company can better manage the startup than the person who possesses knowledge of the business. This means that the finance doesn't matter, the social background of the person doesn't matter, the education doesn't matter because many illiterate people are running a good business. So the only skill these illiterate people possess is experience of managing the business. So the right answer is option A.
Answer:
Total production for the current period is expected to be 7420 units.
Explanation:
The current production should be enough to meet the required units needed for the desired ending inventory and the units needed to meet the current sales after adjusting for the opening inventory of units that is available. Thu,s the current production requirement will be,
Production = Closing Inventory + Sales - Opening Inventory
Production = 263 + 7500 - 343
Production = 7420 units
Answer:
Explanation:
a.)
Given the different probabilities with their respective returns, you will find the firm's expected return using the following formula;
return; r = SUM (probability *expected return)
The formula above means that you multiply each probability by return , then sum the results.
r = (0.25*0.10) +(0.50*0.15) + (0.25*-0.02)
r = 0.025 +0.075 -0.005
r = 0.095 or 9.5%
Therefore, the correct answer is 9.5%. The choices given do not apply.
b.)
Use the Capital Asset Pricing Model(CAPM) formula to calculate the required return. Additionally, since we have inflation rate, adjust the formula to that inflation rate since investors would require a high rate to compensate for it.
Inflation adjusted CAPM required return; r = risk free + inflation + beta(Market return - risk free)
r = 0.045 + 0.03 + 1.50(0.11 - 0.045)
r = 0.075 + 0.0975
r = 0.1725 or 17.25%
Therefore, the required rate is 17.25%
Answer:
The correct answer is the option D: real GDP and the price level.
Explanation:
To begin with, the <em>"model of aggregate demand and aggregate supply"</em> is the name given to an economy model created by John Keynes many years ago and whose main purpose is to show in a graphic the existing relationship established by Keynes between the price level and the production level. Therefore that, as it is known, the GDP comprehends the production level in this model and it is used in order to try to predict the possible effects that some external factors may have in both the real GDP and the price level.
Answer:
a. Identify a cost driver associated with each activity.
Explanation:
While setting up the new activity based costing system he presently completed the identification of the activities and the cost of overhead is associated with each kind of activity
Now the next step in the activity based costing is to have a identification of the cost driver that associated with each kind of activity
Here cost driver means number of machine hours, number of machine setups, etc
Therefore the first option is correct
