1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natita [175]
3 years ago
13

The Pecking Order view on capital structure:

Business
1 answer:
irina1246 [14]3 years ago
4 0

Answer:

c. Argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.

Explanation:

The Pecking order theory states that a business should first of all seek for internal funds (retained earnings) as a first choice of capital.

When internal funds are depleted, it can now look to debt as a source of finance.

In turn when debt options have been exhausted the last resort is to look for funding from equity.

So the Pecking order argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.

You might be interested in
Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will . The dem
exis [7]

Answer:

decrease

increase

Frictional

) establishing government employment agencies to connect unemployed workers to job vacancies 

Explanation:

The options needed to answer the last question are :

a) extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government 

b) establishing government employment agencies to connect unemployed workers to job vacancies 

c) offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

The law of supply states that the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

It follows that if the world price of cotton falls, the quantity supplied would fall too as firms would reduce their production of cotton. If firms reduce their production of cotton, they would need less labour and the demand for Labour would fall.

In the industry that makes use of cotton has an input, the fall in world price would make cotton cheaper. The firm would increase the quantity demanded for and as a result production would increase. Firms would need more labour as a result of the increase in production. Therefore, the demand for Labour would increase.

Frictional unemployment is unemployment that results as a result of labour moving from one job to another

Establishing government employment agencies to connect unemployed workers to job vacancies would ease the job search of labour and reduce unemployment.

I hope my answer helps you

4 0
3 years ago
The agreements that set terms for various aspects of commercial relations with other countries such as the right to conduct busi
Ivan
The agreements that set terms for various aspects of commercial relations with other countries such as the right to conduct business in the treaty partner's domestic market are called <span>friendship, commerce, and navigation (FCN)  treaties. Correct answer: C
</span><span>This document includes several aspects: human rights, trade and investment protection in international diplomacy.</span>
8 0
3 years ago
A Bill of Material (BOM) in MRP is defined as:
Brums [2.3K]

Answer:

The correct answer is letter "B": A listing of components, their descriptions, and the quantities of each required to make one unit of a product.

Explanation:

A Bill of Material (BOM) in Materials Requirement Planning (MRP) relates the final product with the raw materials, assemblies, parts, and components necessary to manufacture a unit of that good. The BOM is a document that itemizes all the resources necessary to produce a good including at the top the product itself and a listing in hierarchical orders from components to individual materials.  

Creating an accurate BOM helps to have all the material necessary for production available.

4 0
3 years ago
Linda decides to open a kiosk in the mall selling baseball hats. It costs her $2280 to stock 100 hats and $3580 to stock 500 hat
Liula [17]

Answer with Explanation:

1. Marginal Cost per Unit

As we know:

Marginal Cost per Unit = Change in Cost / Change in Quantity Bought

= ($3580 - $2280) / (500 - 100)

= $3.25 per Unit

2. Fixed Cost to setup

The fixed cost would be $2280 because it is the cost that is required for setting up the kiosk. The cost $3580 is not relevant because it depends on the demand of the product. The least cost to set up kiosk is $2280.

3. Cost Function

Total Cost = Fixed Cost + Variable Cost

As we know that:

Variable Cost = Marginal cost per unit * Number of units = $3.25 * x = 3.25x

For Fixed cost $2280

By putting this value in the above equation, we have:

Total Cost = $2280 + 3.25x

C(x) = $2280 + 3.25x

And

For Fixed cost $3580

C(x) = $3580 + 3.25x

4. Revenue Function

Total Revenue = Selling Price per Unit  *  Total Units

Here

Selling price is $8 and total units are "x"

By putting values, we have:

Total Revenue = $8 * x

R(x) = 8x

5. Breakeven Point For $2280 and $3580

As we know that

Breakeven Point = Fixed Cost / Contribution Per unit

For Fixed Cost $2280:

Breakeven Point = $2280 / ($8 - $3.25)

= 480 Units

For Fixed Cost $2280:

Breakeven Point = $3580 / ($8 - $3.25)

= 754 Units

6. Profit Function

For Fixed Cost $2280:

Profit = Revenue Function - Cost Function

P(x) = 8x  -  ($2280 + 3.25x)

P(x) = 8x - $2280 - 3.25x

P(x) = 4.75x - $2280

For Fixed Cost $3580:

P(x) = 4.75x - $3580

7. Claire's Profit if she sells 1,000 bottles

Using the above profit function for fixed cost $2280, we have:

P(x) = 4.75x - $2280

Here x is 1,000 units, which means:

P(x) = 4.75 * 1,000   -   $2280

P(x) = $4,750 - $2280 = $2,470

Using the above profit function for fixed cost $3,580, we have:

P(x) = 4.75x - $3,580

Here x is 1,000 units, which means:

P(x) = 4.75 * 1,000   -   $3,580

P(x) = $4,750 - $3,580 = $1,170

5 0
3 years ago
Allocation of resources is inefficient only if:________
weqwewe [10]

Answer:

<em><u> we produce the goods and services that  people value less</u></em>

<em><u>Explanation:</u></em>

<em><u>Remember, </u></em> an inefficient activity is one that<em> fails</em> to achieve maximum productivity with minimum wasted effort.

Let's take for example a mobile producer (manufacturer) decides to allocate its resorces into producing<em> laptops.</em> However, it later determined that the allocated resources were inefficient since most consumers according to a  survey now prefer <em>tablet</em> <em>computers. </em>The company received low sales volume as result.

6 0
3 years ago
Other questions:
  • A ____________ is an intermediary who sells hope springs's bottled water to retailers such as the coffee collective.
    13·1 answer
  • Liam Wallace is general manager of moonwalk salons. during 2016 while this works for the company all year at a $13600 monthly sa
    7·1 answer
  • Quill Manufacturing Business makes two models of marking pens. The requirements for each lot of pens in the three manufacturing
    14·1 answer
  • What does the word "Friend" mean?
    5·2 answers
  • Ronald, Jamie, Ben, and Joseph are colleagues who want to start a company of their own. All of them want to be actively involved
    11·1 answer
  • A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: A)
    14·1 answer
  • SmartCorp sells 500 units, resulting in $75,000 of sales revenue, $32,000 of variable costs, and $20,000 of fixed costs. The num
    6·1 answer
  • At the beginning of the year, Oak Corp. (an S corporation) had $50,000 in its AAA, $30,000 of earnings and profits from prior C
    11·1 answer
  • Develop a realistic example in which you expect positive covariance​
    10·1 answer
  • All of the following are methods of evaluating the risk of a project except multiple choice the net present value profile a mont
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!