Answer:
Bank loans
Financial institutuions loans
Creditors
Explanation:
A private limited company depends on its retained earnings or assets . The other option available is that of getting financed through bank loans or other institutions serving as creditors to invest and the company may record the loan as accounts payable or long term loan which ever is possible.
The same would be for the sole proprietorship because it can even generate funds through bank loans or creditors.
In case of the public limited company the it would be different as it can raise funds through issuing new shares.
Answer:
Current ratio = 2.25
Acid test ratio = 1.25
After Taking Loan
Current ratio = 1.64
Acid test ratio = 0.91
Explanation:
Current Ratio is the comparison of company's short term assets and short term liabilities to see if the company is able to pay its short term liabilities.
Current Ratio = Current Assets / Current Liabilities = $90,000 / $40,000 = 2.25 times
The company can pay 2.25 time the current liabilities from its current assets.
Asset test ratio compares company's most short term assets with most short term liabilities to check that if company is able to pay all the immediate liabilities it become due.
Acid Test ratio = ( 90,000 - 40,000 ) / 40,000 = 1.25
After taking the bank loan
Total current Liabilities = $15,000 + 40,000 = $55,000
Current ratio= $90,000 / $55000 = 1.64
Acid test ratio = $50,000 / $55000 = 0.91
The answer is b a district court judge
Answer:
11.7%
Explanation:
Calculation to determine What were the dollar-weighted rates of return
Dollar-weighted rates of return=$500,000 + $500,000/(1 + r)
Dollar-weighted rates of return= $75,000/(1 + r) + [($500,000+500,000)+(10%*$500,000+$500,000)]/(1 + r)^2
Dollar-weighted rates of return= $75,000/(1 + r) + $1,100,000/(1 + r)^2
Dollar-weighted rates of return= 11.7%;
Therefore The Dollar-weighted rates of return is 11.7%
Answer:
If the Cobb Douglas production funtion is 
This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L) is homogeneous of degree "m" if 
. Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "
", your output increases by 
. Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).
- In this case, . Applying distributive power's property, we get
. - Because of power property, we can associate terms and get
(remember that 
. - Finally,
. In this case the function is homogeneous of degree 3 because when multiplying K and L by , the function as a whole is multiplied by 
.
Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: 
.
- To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
- Applying Euler's Theorem then means
should be equal to 
(remember that in this case, m=3, see previous exercise).
- Solving
- Then the Euler's Theorem is verified!
