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3 years ago

Define the four factors of production and the differences between physical and human capital.

1 answer:

6 0

Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

Physical capital implies the non-human assets of the company, such as plant and machinery, tools and equipment, office supplies etc. that help in the process of production. Human capital refers to stock of knowledge, talent, skills and abilities brought in by the employee, to the organization.

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What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%

KengaRu [80]

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow / r

Where,

r is the required rate of return

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

3 0

3 years ago

Two individuals who were previously sole proprietors form a partnership. Property other than cash that is part of the initial in

UNO [17]

Answer:

D) Property's fair value at the date of the investment.

Explanation:

When new business is formed from closing the old one, all assets are recorded at fair value.

Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.

Therefore, correct statement is

D) Property's fair value at the date of the investment.

7 0

3 years ago

Jimmy, the marketing manager for an automobile manufacturer, observes frequent conflicts between two of his subordinates, Trent

Alina [70]

it is the person analysis

reason-

a person analysis is the analysis in whch we study the behaviour of the employees it helps us to identify the employees who lacks skills or need training.

8 0

2 years ago

Companies A and B each have the same level of total assets, the same tax rate, and the same earnings before interest and taxes (

anygoal [31]

Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

5 0

3 years ago

Consider this scenario: in response to an increase in the product's price, producers of mp3 players have increased the quantity

kvv77 [185]

Consider this scenario: in response to an increase in the product's price, producers of mp3 players have increased the quantity supplied. this is an example of Law of Supply. The law of supply states that the quantity of a good supplied rises as the market price rises, and falls as the price falls.

7 0

3 years ago