Answer:
E. Profit motive
Explanation:
Profit motive can be defined as the intention, motivation or desire to form a business or engage in business ventures so as to generate financial (monetary) gains.
This ultimately implies that, profit motive is a desire for monetary gains (profits) which motivates a business owner to engage in the sales of finished goods or services.
Hence, profit motive is the premise on which all businesses are built on because the ultimate goal of every business is to achieve financial gains.
In this scenario, the computer accessories that Javier is making and selling are bringing in a substantial amount of money for him. Inspired by this success, he decides to hire two people and expand his business.
Thus, this is an example of profit motive.
Associate degree is a 2 year college degree & a Bachelors’s degree. They would be considered a traditional education.
An apprenticeship studies under a master of a trade.
A technical school degree is training in a field specific to what you want to get a job in, like air conditioning repair.
Answer:
60 Kits
Explanation:
Cost price (C) = $20/Kit
Yearly se (D) = 250 kit/year
Shipping cost / Ordering cost (Co) = $25
Holding cost (Ch) = $3.5/Kit-year
Economic order quantity = √2.D.Co / Ch
Economic order quantity = √2*250*25/3.5
Economic order quantity = √12500/3.5
Economic order quantity = √3571.4285
Economic order quantity = 59.7614305
Economic order quantity = 60 Kits
C.
Allocative efficiency in simple terms basically means there is no wastage, therefore if producers produce at price equals marginal coat, they are producing at the point where consumers are willing to pay that final price. Refer to the poorly drawn diagram for reference.
Answer:
D. international diversification
Explanation:
The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.
The effect of international diversification on capital structure can be explained through
1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.
2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.
3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.
