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3 years ago

Why do many economists believe that the best time to start a new business is toward the end of a recession?

1 answer:

3 0

A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.

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There is a connection between the content of an advertisement and the characteristics of the media used to carry the message. Th

GuDViN [60]

Answer: a. Television

b. Radio

c. Magazine

d. Newspaper

e. Internet/Mobile

f. Outdoor/Billboard

g. Direct marketing

Explanation:

Based on the different types of media available, the answers to the items below will be:

a. High cost: several channel and program options; may increase awareness of competitors' products.

The above description is for Television.

b. Relatively inexpensive; can be selectively targeted; wide reach.

The above description is for Radio.

c. Very targeted; subscribers pass along to others.

The above description is for Magazine

d. Can be expensive some markets; advertisements have short life span.

The above description is for Newspaper.

e. Can be linked to detailed content; highly flexible and interactive; allows for specific targeting.

The above description is for Internet/Mobile

f. Is not easily targeted; has placement problems in some markets; exposure time is very short.

The above description is for Outdoor/Billboards

g. Highly targeted; allows for personalization.

The above description is for direct marketing

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3 years ago

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from

lutik1710 [3]

Answer:

a. cross-functional team

Explanation:

In this case, the most appropriate is the use of a cross-functional team.

This team is formed by several professionals with knowledge, techniques, skills and resources to help the company achieve its goals and objectives.

The benefits of forming a cross-functional team is to aggregate the potential of each member in a common objective, which ensures greater flexibility of ideas, greater innovation, greater exchange of experiences, which guarantees greater team engagement, greater possibility of designing solutions and greater efficiency in organizational processes.

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3 years ago

You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce

Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000 + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1 - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

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3 years ago

Label each of the following statements as an example of positive or normative analysis.

STALIN [3.7K]

Answer and explanation:

The difference between constructive and normative economic statements is considerable. Economists use both types of statements when addressing economic issues with varying degrees of objectivity. Positive statements state facts, which show no signs of endorsement or disapproval. Normative economics includes assumptions related to subjectivity and meaning.

1) The sugar quota in the United States costs consumers $6.08 billion a year. (Positive statement)

2) Higher tariffs on imported automobiles would decrease the demand for foreign-made cars. (Normative statement)

3) International trade should be limited because it can cause some workers to lose their jobs. (Normative statement)

4) International trade makes some people better off and some people worse off. (Positive statement)

5) The U.S. should impose import quotas in the market for consumer electronics to help domestic workers. (Normative statement)

6) The sugar quota in the U.S. is good public policy and should be made stronger. (Normative statement)

4 0

3 years ago

In 2009, during the height of the U.S. financial crisis, real GDP fell 3.5 percent and the Consumer Price Index fell from 215.3

erma4kov [3.2K]

Answer:

This was most likely caused by a shift in the aggregate supply curve to the left.

Explanation:

a recession is when the economy is declining and this can be caused by declining trade and industrial activity so if Real GDP decreases that means there was a decline in prices and a deflation in the market therefore this can be caused by increases in wages or the value of wages which can cause more consumption in the market and then prices fall, an decrease in physical stock which is like people employed where the cost of producing one more unit increases at a decreasing rate so firms end up not hiring more people.

3 0

3 years ago