Answer:
Money Created = $50000
Explanation:
Money Multiplier is ratio of multiple times final deposits, created by initial deposits received by bank. It is determined by Legal Reserve Ratio to be kept by commercial banks, as per central banks commands.
Final Deposits / Initial Deposits = 1/LRR
Given LRR = 0.20, Money Multiplier = 1/ 0.20 = 5 here
This means Final Deposits will be 5 times Initial Deposits. So given intital deposits = 10000 , they will be 10000 x 5 i.e = $ 50000
Answer:
c. Allowing employees the opportunity to be a part of the budget process.
Explanation:
A budget is a plan on how a business will attain its profits objectives. It shows how a firm will allocate its scarce resources to various units to achieve its overall goals. A budget can be prepared on a bottom-up basis where each department sets its targets under the guidance of top management. The top management can also prepare the budget and pass it down to various units for implementation.
When a budget is prepared from bottom to top, employees get involved in the process. It makes them own the document and its objectives. The employees will feel motivated to work as a team to meet their targets. A budget indicates the direction where the business is heading. If employees are involved in the budgeting process, they will help management to steer the company in the intended direction.
Answer:
d. shareholder voting rights
Explanation:
Cumulative is characteristic of preferred stock, in that dividend not paid in a year is carried forward and to be paid in the future.
When the preferred stock is non-cumulative, the dividend not paid in a year is forfeited.
Preferred stock or debenture can be convertible into a known number of common stock in the future.
The characteristic of common stock is that it entitles its holders to vote on certain major decisions.
Answer:
Franchising.
Explanation:
Franchising is an effective way to enter into market when a person has few or no knowledge about the market conditions. This is most suitable for food chains as there is no or minimum changes required for the operations. It is safe option for new entrants.