The third function explains that money is a medium of exchange. It means that it is better to use the money used in the country itself to gain better service because it would provide better protection. Costumers would be more satisfied if the business would accept the money they have and it would be safer and mutually good for both if the customer would transact using the currency country's currency.
Source: https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
Answer:
c. will earn zero economic profits but positive accounting profits
Explanation:
A competitive industry is characterised by many buyers and sellers of homogenous goods and services.
There are no barriers to entry and exit of firms. If firms in a competitive industry earn economic profit in the short run, firms enter into the industry in the long run and economic profit falls to zero.
A competitive firm earns accounting profit but doesn't earn economic profit.
Accounting profit = Revenue - Cost
Economic profit = Accounting profit - Opportunity cost
I hope my answer helps you.
Independance. a sovereign state is one who has a permanent population, a defined territory, a government and so on.
Answer:
The amount of goodwill that is recorded by Large is $5 million
Explanation:
Goodwill is the excess of price consideration paid to acquire controlling stake in a company over the fair value of the company's net assets.
Net assets in the sense implies the fair value of total assets less fair value of liabilities.
Fair value of total assets is $9 million
Fair value of liabilities is $3 million
As a result net assets upon acquisition is $6 million($9 million less $3 million)
Since the consideration paid in acquiring Small's voting stake is $11 million, goodwill is $5 million($11 million less $6 million).
The $ 5 million is the excess of purchase consideration over the fair value of Small's net assets as at the date of acquisition
Answer:
a) 39.304%
b) 67.91%
c) 14.17%
Explanation:
a. Given"
Offer terms = 1.8/10
Now,
The Effective annual interest rate is given as:
= 
on substituting the respective values, we get
= 
= 0.39304
or
= 39.304%
similarly,
b. for 2.8/10 net 30
Effective annual interest rate = 
= 0.6791
or
= 67.91%
c. for 1.8/10 net 60
Effective annual interest rate = 
= 0.1417
or
= 14.17%
