The answer to the question is (C) how changing circumstances may affect the business and how the business model can be adjusted to cope with them.
Business model is defined as a model that a business uses to determine how it plans to generate revenue and in turn, profit. Another term for business model is profitability model. Thus business model risk implies risk management principles that are applied on business model contexts.
Answer:
Value Proposition
Explanation:
Value proposition is the a promise to customers that the benefit that we saying our product possesses over other competitors will be received by you if you buy our product. It provides the reasoning to the customers why they should buy our products. So the right option is VALUE PROPOSITION because the question says that the firm tries to take the customers from the market by telling them what benefits and uniqueness the product will offer you above other competitor's products.
Under the historical cost principle the cost of land would be recorded at: <u>d. $410,000
</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Purchase cost of land = $350,000
Brokers commission = $25,000
Cost for demolishing old building = $35,000
Principle cost of land = ?
Principle cost of land= Purchase cost of land+ Brokers commission+ Cost for demolishing old building
= $350,000+$25,000+$35,000
= $410,000
Principle cost of land= $410,000
The correct option is <u>d.$410,000</u>.
Answer:
As price elasticity of supply increase the supply curve will be closer to the horizontal axis thus shallower.
Explanation:
The price elasticity of supply can be defined as a measure of how much the price of a good or service changes with a corresponding change in the supply of that specific good or service. This means that a good or service can be described as either elastic or inelastic depending on how it's price and supply parameters behave. Inelastic goods are those goods whose price change with reference to their supply do not change much. These goods are sometimes referred to as essentials since people tend to buy them even if the prices are high. On the other hand, elastic goods are those ones whose price fluctuates depending on the supply. These goods are called luxuries, since people buy them only when their prices are low, and avoid them when the price rises.
The price elasticity of supply can be determined using the expression below;
E=%Q/%P
where;
E=elasticity of supply
%Q=percentage change in quantity supplied
%P=percentage change in the price for the corresponding changes in quantity supplied
The supply curve generally represents changes in price verses the changes in quantity supplied. The price is plotted on the left vertical axis, against a corresponding quantity supplied on the horizontal axis.
A product that has more price elasticity of supply will cause the supply curve to be shallower: closer to the horizontal axis. On the other hand a product with less elastic supply will make the supply curve to be steeper: closer to the vertical.
Unit of Account.
One of the main qualities of cash is that it fills in as a unit of record. Cash as unit of record is something that can be utilized to esteem labor and products, record obligations, and make computations that is all there is to it is an estimation for esteem. It has three significant qualities which are:
Diversity:- It very well may be separated so that it's part is equivalent to it's unique worth.
Fungible:- One of the unit is equivalent to some other piece of the unit with no adjustments of significant worth.
Countable:- It very well may be counted and exposed to numerical tasks.
To learn more about Unit of Account.
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