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3 years ago

do you think that free enterprise encourage entrepreneurship? does entrepreneurship promote economic change? explain

2 answers:

8 0

Yes, I think that free enterprise encourage entrepreneurship, because entrepreneurs want profit in what he/she is selling. In a free enterprise making profit is a pro not a con. Entrepreneurship promotes economic change, because entrepreneurs specialize in making small businesses make tons of profit.

lukranit [14]3 years ago

6 0

Free enterprise pretty much says that people can sell whatever they want at a price they choose to whoever wants to but it. Becacuse of this people wanted to go out and make their own businesses where they sold the goods or services they chose to. So yes, I believe free market inspired people to become euntrapenures. For the next question, yes as well. With the amount of people selling different things the economy became more diverse.

You might be interested in

Not all goods are normal goods. If the demand for a good rises when income falls, the good is called an ________ ________. An ex

oksano4ka [1.4K]

Answer:

Inferior good

Explanation:

An inferior good is a good for which demand rises when income falls and demand falls when income rises.

on the other hand, Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

7 0

3 years ago

On the first day of the fiscal year, a company issues an $949,000, 9%, five-year bond that pays semiannual interest of $42,705 (

KonstantinChe [14]

Answer:

Bond issue price $892,100

Face value $949,000

Discount on bond $56,900

Number of Interest payments (10 years x 2) 10

Discount to be amortized per payment $5,690

Interest on bond $51,210

Date Description Debit Credit

Dec. 31 Bond interest expense $56,900

Discount on bonds payable $5,690

Cash $51,210

(Interest on bond paid and Premium amortized)

7 0

3 years ago

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following s

Charra [1.4K]

Answer:

b.The good is a necessity

Explanation:

The price elasticity of demand = percentage change in quantity demanded/ percentage change in price

3% / 12% = 0.25

When the coefficient of elasticity is less than one, demand is inelastic.

Inelastic demand means that when price increases, there is little or no change in quantity demanded.

Necessity goods are goods that are very important to consumers and thus they tend to have an inelastic demand. For example, medications.

Substitute goods are goods that can be used in place of another good because of their similarity. E.g. butter and margarine

Goods with many substitutes have an elastic demand. If price of a good increases, consumers can easily shift consumption to substitute goods.

Narrowly defined goods have an elastic demand because it is easier to find subsituites for such goods.

Demand is more elastic in the long run because consumers have more time to search for substitutes.

I hope my answer helps you

3 0

3 years ago

Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates are 20

maw [93]

Answer:

The after-tax cash flow (after-tax salvage value) from the sale is $18,941.20

Explanation:

The computation of the after-tax cash flow is shown below:

= Purchase of fixed asset - depreciation charged - sale value of machine + profit on sale - tax rate

= $39,000 - ($39,000 × 20% + 32%) - $19,000 + $280 - 21%

= $39,000 - $20,280 - $19,000 + 280 - $58.80

= $18,720 + $280 - $58.80

= $18,941.20

The $18,720 reflect the Written down value of the fixed asset which come from

= $39,000 - $20,280

3 0

3 years ago

The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $12

finlep [7]

Answer:

$20,370.5

Explanation:

Net Profit Margin = Net Profit / Sales= 5,168 / 23500 = 0.219915 = 21.99%

Dividend Payout Ratio = Dividends / Net profit = $1,560/$5,168 = 0.3018576 = 30.19%

Increase in Assets = Total Assets / Current Sales * Change in Sales

Increase in Assets = 121,000 /23,500 * (28,300-23,500)

Increase in Assets = 5.1489362 * 4800

Increase in Assets = $24714.89

Increase in Current Liabilities = Current Liabilities / Current Sales * Change in Sales = 0

Earnings Retained = Revised sales * Net profit margin * (1- dividend payout ratio)

Earnings Retained = $28,300 * 21.99% * (1 - 30.19%)

Earnings Retained = $28,300 * 0.2199 * 0.6981

Earnings Retained = $4344.39497

Earnings Retained = $4344.39

External Financing Needed = Increase in Assets - Increase in Current Liabilities - Earnings Retained

External Financing Needed = $24714.89 - $0 - $4344.39

External Financing Needed = $20,370.5

7 0

3 years ago