Answer:
E) managers formulate plans that are based on "what-if" scenarios that are about the future
Explanation:
When you are carrying on a planning exercise, you must try to simulate possible business scenarios and determine the different possible outcomes for your project.
For example, in scenario 1 you might include very positive variables, e.g. if we have a high selling price, low costs, high demand, low taxes, what will be our net income. In scenario 2, if our sales are not that high, what will happen to our income. In scenario 3, if our costs might be higher than expected or taxes might increase, what will happen. And so on until you cover most of the possibilities.
If a project is profitable and has a positive NPV only with very favorable scenarios, then you should weigh how possible are those favorable scenarios. You should also determine how risky your investment becomes if something changes. Sometimes even a small change can make a project fail.
Answer:
the elasticity of demand is more elastic in the long run
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
In the long run, people have more time to search for suitable alternatives than when compared to the short run. Thus, demand tends to be more elastic in the long run
Answer:
A. 20
Explanation:
The reserve ratio= Reserve required / Total deposit × 100
= $20,000 / $100,000 * 100
= 1 / 5 *100
= 100 / 5
= 20%
The answer is A. 20
The reserve ratio also known as cash reserve is the portion of deposits that commercial banks must withhold or keep rather than lend out or invest as directed by the central bank of a country.
Answer:
J1
Cash $540 (debit)
Cost of Goods Sold $240 (debit)
Sales Revenue $540 (debit)
Inventory $240 (credit)
J2
Warranty Provision $38 (debit)
Direct Materials $38 (credit)
Explanation:
September 1 entries to record the cost and sale of the mower are :
Cash $540 (debit)
Cost of Goods Sold $240 (debit)
Sales Revenue $540 (debit)
Inventory $240 (credit)
The Warranty Expenses is recorded as :
Warranty Expense $32.40 (debit)
Warranty Provision $32.40 (credit)
Warranty = $540 × 6% = $32.40
When the mower is brought i for repairs, the amount of Provision is used as follows :
Warranty Provision $38 (debit)
Direct Materials $38 (credit)
Answer:
False.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
Some examples of international economic organizations involved in global economy and trade are;
- World Trade Organization (WTO).
- United Nations (UN).
- International Monetary Fund (IMF).
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
Language is not the most complex challenge global marketers face because they can be translated easily through the use of a software application, an interpreter or simply through the use of other forms of communication.
