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3 years ago

Companies raise capital in two main forms:

Business

1 answer:

Anika [276]3 years ago

6 0

Answer: The answer is a

Explanation:

Equity : This is the ownership claim to the resources of the firm. In equity financing funds are raised either by initial capital contribution by owners or by additional capital contribution by existing and new owners for example the sale of shares to shareholders or by reinvesting profit earned by the business. Where an existing business is being financed by equity involving funds from new investors, it means that the original owners of the business will have to share the ownership, risk and profit of the firm with the new investors.

Debt financing : This is when a company raise a capital for the day to day running of the company known as a working capital through the selling of bond to individuals or institutional investors, in which those individuals or the institutional investors will now become a creditors to the company. As a result of been the creditor to the company they will be paid interest on the amount of money they lend to such company. However, In selecting the sources of funds by a company, the following must be taken into consideration

Cost of obtaining the fund : The cost of obtaining the fund from the various sources must be weighed against the rate of return of the fund.

The burden and timing of principal and interest payment : The company must consider the timing of principal and interest payment. A company must not borrow what they cannot pay,the method of repayment may considerably affect the ability of the firm to repay the loan without difficulty.

Risk involved : This refers to the possibility that the contributor of the fund may someday seek to withdraw his investment or attract higher interest rate.

Maturity of the debt : The duration or the specific use of the money will determine the best sources for the money. They company must consider maturity dates of the loan because they must plan in advance to have sufficient cash on hand when the

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A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries

KIM [24]

Answer:

Adaptation of industrial products is the correct answer.

Explanation:

5 0

3 years ago

Common resources versus private goods

kari74 [83]

Answer: Please refer to Explanation

Explanation:

1. The fish in the river are considered rival in consumption and non-excludable whereas the fish in the private stream are rival in consumption and excludable.

When a good is said to be Rival in Consumption, it means if it is consumed by one person first, another person cannot get it which reduces their chances of getting the same good. Once Eric consumes or catches a fish, no one else can catch that fish which means fishing is a Rival in consumption activity.

When a good is said to be Excludable, it means that people can be prevented from accessing the good of they have not paid for it. The pond on Eric's property is private so people cannot just come in and fish. It is Excludable. Non-Excludable on the other hand is the inverse and means people who have not paid can access the good like the river in town.

2. In other words, the fish in the river are example of common resource and the fish in the private stream are an example of private good.

Common resources are available to everyone as they are in the public domain like the fish in the river. Private goods however are not in the public domain and ate meant to be accessed by only certain people like the private stream which is only accessible by Eric's family or whoever they want to have access to it.

3. Fishing in the river will likely lead to the tragedy of commons because of which of the following reasons?,

B. anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.

The Tragedy of the Commons is an Economic explanation of the situation whereby people who have easy access to a resource such as the river in this instance, are able to use it with little cost to them. This might lead to a situation where they use it to the detriment of others because they will fish more and this will reduce the amount of fish left for others.

4 0

4 years ago

Exceptional Events provides event management services. The company has three employees, each assigned to specific customers. Th

MariettaO [177]

Answer:

Net operating income= $550

Explanation:

Giving the following information:

Maribel:

Sales= $6,000

Variable cost= $5,900

Contribution margin= $100

Jessica:

Sales= $10,700

Variable cost= $7,100

Contribution margin= $3,600

Timothy:

Sales= $12,350

Variable costs= $12,000

Contribution margin= $350

The total fixed costs for the month amount to $3,500.

Net operating income= contribution margin - fixed costs

Net operating income= (100 + 3,600 + 350) - 3,500= $550

6 0

3 years ago

In the cartel model Group of answer choices firms believe that price increases result in a very elastic demand, while price decr

bekas [8.4K]

Answer:

firms coordinate their decisions to act as a multi-plant monopoly..

Explanation:

A cartel is a group of countries or firms that have reached an agreement to work together in order to influence or decide market prices for goods and services by controlling sales and the level of production or quantity of output.

In the cartel model firms coordinate their decisions to act as a multi-plant monopoly, wherein the level of production or quantity of output is divided into many production plants.

The main purpose of having the cartels do this is to make marginal cost (MC) equal to marginal revenue (MR) in the various production plants, so as to create monopoly profits by making sure each plant has its own cost.

8 0

3 years ago

Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr

Molodets [167]

Answer:

Order size= $57.61 per machine hour

Explanation:

Giving the following information:

Order size:

Estimated total overhead= $581,866

Estimated total machine hours= 10,100

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order size= 581,866 / 10,100

Order size= $57.61 per machine hour

8 0

3 years ago