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Svetradugi [14.3K]
3 years ago
12

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas willdecrease .

The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, willdecrease . The temporary unemployment resulting from such sectoral shifts in the economy is best described asfrictional unemployment.
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer:

Decrease

Increase

Frictional unemployment.

Explanation:

If the world price of cotton falls considerably, the cotton producing firms will not be able to make the expected level of revenue they have initially projected, this fall in revenue will lead to the firm requiring less labor, therefore there will be a decrease in demand for labour.

However, textile producing firms in South Carolina will see this fall in price as an opportunity to purchase as much cotton as possible, this will therefore lead to the firms needing more labor to work with the large number of inputs purchased. This will therefore, lead to an increase in the demand for labor.

The resulting consequence will therefore be Frictional Unemployment, which is the time spent between jobs by the labor. It results from transferring from the cotton producing firms, to the textile producing firms.

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In a leveraged buyout, the managers of a firm, its employees, or other investors: obtain the assets of the company through bankr
erik [133]

Answer:

borrow funds to buy out the firm's stockholders. 

Explanation:

A leveraged buyout is when the managers of a firm, its employees, or other investors use debts or borrowed finds to acquire a company.

I hope my answer helps you

4 0
3 years ago
Wendell Company provided the following pertaining to its recent year of operation:
myrzilka [38]

Answer:

Option (B) is correct.

Explanation:

Wendell's total stockholders' equity increase during the recent year of operation:

= Issued common stock - Cash dividend declared + Net Income - Stock dividend distributed + Sale of treasury stock below cost

= $50,000 - $20,000 + $70,000 - $23,000 + $7,000

= $84,000

Therefore, Wendell's total stockholders' equity increase by $84,000.

3 0
3 years ago
2. How could you assess whether new office designs are improving the organizational culture
juin [17]

Answer:A proper office layout is the key to a high performance office. This means both good performance from your employees but also your business. Companies that have a great culture are highly sought after by prospective employees and can provide a competitive advantage in both hiring and retaining staff.

Explanation:

7 0
2 years ago
b. D Corp stock currently trades at $50. August call options on the stock with a strike price of $55 are priced at $5.75. Octobe
coldgirl [10]

Answer:

The value of the time premium between the August and October options is $0.50

Explanation:

A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.

To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value

Time premium = 6.25 - 5.75 = $0.50

3 0
3 years ago
You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the cu
slava [35]

Answer:

The change should you expect in operating cash flows next year would be 19.60%

Explanation:

In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:

change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year

change should you expect in operating cash flows=2.8*0.07

change should you expect in operating cash flows=19.60%

The change should you expect in operating cash flows next year would be 19.60%

8 0
3 years ago
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