Answer:
Moral codes and social sanctions
Explanation:
Externality is when the actions of a producer or consumer have an effect on third parties not involved in production or consumption.
Externality can be positive or negative.
Postive externality is when the benefits of economic activities to third parties exceeds the costs.
Negative externality is when the costs of economic activities to third parties exceeds the benefits.
Smoking and littering the environment with cigeratte butts is an example of an activity that generates negative externality.
Sharon's morals and sense of judgement cautioned her against littering with her cigarette butts because she knows such activity is frowned against by the society. So, in this case she is guided by her moral codes.
This is one of the solutions to externality.
Other solutions include:
Taxation
Integration of different types of businesses through merger or acquisition
Contracts
Charities
I hope my answer helps you
Answer:
D) 3 years' worth of dividends will be paid to preferred shareholders prior to paying anything to common shareholders.
Explanation:
Shareholders are the individuals or institutions that hold the stock of a company making the owners of the business. Shareholders can either be common shareholders or preferred shareholders. Common shareholders are more prevalent and have voting rights in matters concerning the company.
Preferred shareholders hold preferred stock. They are rare and have no voting rights in the way the organization is managed. Preferred shareholders are entitled to a fixed amount of dividend every year. Dividends to preferred shareholders have to be paid first before common shareholders are paid out. Usually, common stockholders will be last to paid last in the event of dividends payouts or in times of liquidation.
Answer:
The correct option is A,$ 22,687,200
Explanation:
The year end balance of the equity investment of Champaign Corporation at year end is the initial price paid for the investment plus share of net income in the year less Champaign Corporation's share of cash dividends paid in the year as shown below:
Initial cost of investment $21,600,000
share of net income($2,960,000*45%) $ 1,332,000
Less:share of dividends($544,000*45%) ($244,800)
Year end balance of equity investment $ 22,687,200
The correct option is A.
It is important to note that dividends were deducted because it is more ike a cash out from the investment
Simplify each term.
2
a
x
+
2
a
y
−
3
b
x
+
3
b
y
Answer:
A : decreasing its variable costs by at least 15%
Explanation:
Variable costs depend on the number of passengers they transport as there will be a decrease of the 15 %in the income received by each passenger. Then, it must be an equal reduction on the expenses generated by each passenger in order to remain competitive.
