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kupik [55]
3 years ago
15

High and unexpected inflation has a greater cost. True or False

Business
1 answer:
Alik [6]3 years ago
8 0

true...................

You might be interested in
12. What is OSHA's purpose?
asambeis [7]

Answer:

ansure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education and assistance.

Explanation:

4 0
2 years ago
At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show y
ella [17]

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.

Solution:

1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.

Formula used:

Debt-to-equity ratio  =  Total liabilities divided by owner's equity

For Clobes:

Total liabilities = 100,000

Owners' equity =  200,000

Debt-to-equity ratio = 100000/200000 = 0.5

For Snyder:

Total liabilities = 300,000

Owners' equity = 200,000

Debt-to-equity ratio = 300000/200000 = 1.5  

For Welz:

Total liabilities = 300,000

Owners' equity = 100,000

Debt-to-equity ratio = 300000/100000 = 3

Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.

2. calculate Return on Equity(ROE)

Formula used:

ROE = Net income / Owner's equity

For Clobes:  

Net income = 25,000

Owners' equity = 200,000

ROE = 25,000 / 200000 = 0.125

For Snyder:

Net income = 30,000

Owners' equity = 200,000

ROE = 30000 / 200000 = 0.15

For Welz:  

Net income = 20,000

Owners' equity = 200,000

ROE = 20000 / 100000 = 0.2

Welz has the highest return of equity (ROE) of 0.2.

As a result, Welz is the most profitable company.

3. Return on assets:

Formula used

Return on Assets = Net income / Total assets

For Clobes:  

Net income = 25,000

Total assets = 300,000

Return on Assets  = 25,000  / 300000 = 0.08

For Snyder:  

Net income = 30,000

Total assets = 500000

Return on Assets  = 30000 / 500000 = 0.06

For Welz:  

Net income = 20,000

Total assets = 400,000

Return on Assets  = 20000 / 400000 = 0.05

Hence,

Clobes has the highest return on assets, which is 0.08.

5 0
3 years ago
Juan argued that bluegrass is the best food for cattle in the Midwest. Sammy objected by citing how the authorities at the U.S.
seropon [69]

Answer:

committed the fallacy of avoiding the issue.

Explanation:

The fallacy of avoiding the issue is also called the fallacy of irelevant conclusion or a red herring.

It occurs when an individual avoids dealing with an issue that he has a problem with.

In the given scenario the issue is whether bluegrass is better than Alfa Alfa for cattle in the Midwest.

Instead of Juan to address the issue he is arguing that the U.S. Department of Agriculture is a bloated bureaucracy with too much fat that deserves to be cut in the next federal budget bill.

He is not addressing the main issue

8 0
2 years ago
business ethics chapter 4 friedman's view of the corporate world supports the rights of individuals to make money with their inv
alukav5142 [94]

Answer:

True

Explanation:

Because in Friedman's view making profit is the only social responsibility of the company. He said this because in his view the company has to earn profit for investments and if the company makes investments, it would create jobs and increased exports. So this means this is the best social responsibility in context of a economist, the company can pursue.

3 0
3 years ago
A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis
Nataly_w [17]

Answer: 130 days

Explanation:

The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.

It is calculated with the following formula,

= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

Where,

Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales

Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,

Days of Payables Outstanding is the time it took the company to pay for the goods it bought

Plugging in the figures we have,

= 100 + 60 - 30

= 130 days

The firm's cash conversion cycle is 130 days.

7 0
3 years ago
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