Answer:
c
Explanation:
here are their assumptions
- All expectations on expected cash flows are homogenous
- bonds and shares are traded in perfect markets - there are no transaction costs. two investments with identical cash flows, terms and risk must trade at the same price
- investors can borrow and lend at the risk free rate
- there are no agency cost
- investing and financing decisions are independent of each other
A firm's attempts to shorten the length of time a process takes may lead to disappointing outcomes because of time compression diseconomies.
<h3>
What are time compression diseconomies?</h3>
- According to time compression diseconomies, which are defined as inefficiencies that arise when work is done more quickly, the cost of building a competency will rise exponentially as the amount of time permitted to do so decreases.
- Not every subsidiary deals with time compression diseconomies to the same extent.
- The date of a later subsidiary formation may affect how strong TCD is. Early-established subsidiaries may have greater TCD than later entries due to two factors.
- First, for late movers, vicarious learning may lower TCD. Second, TCD is made worse by the higher environmental uncertainty that early mover subsidiaries frequently experience.
- TCD explains why the well-studied relationship between the level of multi-nationality and business success is negatively moderated by the rate of overseas expansion.
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<span>Parent-infant co-sleeping is this norm. Some people believe that doing this creates a stronger bond between the parents and the infant. It also is said to make nursing easier. Some believe that is makes it more difficult to get an infant to sleep by themselves.</span>
If the reserve requirement is 10 percent and the central bank sells 10,000 in government bonds on the open market, the money supply will <u>decrease by a maximum of $100,000.</u>
<h3>
What is Reserve Requirement?</h3>
- The amount of money that a bank must have in reserve in order to pay its obligations in the event of unforeseen withdrawals is known as the reserve requirement.
- The central bank uses reserve requirements as a tool to alter the amount of money in the economy and affect interest rates.
- Based on a portion of the cash that customers have on hand, banks lend them money.
- In exchange for this power, the government imposes one obligation on them to maintain a minimum balance of deposits to cover potential withdrawals.
- The reserve requirement is the amount that banks must hold in reserve and are not permitted to lend above.
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