Explain global business planning system in detail

Which of the following can explain the upward slope of the short-run aggregate supply curve? a. nominal wages are slow to adjust

Goryan [66]

Answer: A - nominal wages are slow to adjust to changing economic conditions

Explanation:

In the short run, the costs of many of the factors used in the production process are fixed. For example labours wage is fixed for a number of years because of labour contracts. Also the raw materials used in the production process have long term agreements that fix their prices.

As a result of factors of production been fixed in the short run, when general price level rises and the cost of production remains constant, profit also rises.

Firms take advantage of this rise in price and increase production and the quantity of aggregate supply increases. This is why the short run aggregate supply curve is upward sloping.

7 0

4 years ago

A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 million shares held by its founde

Sergeu [11.5K]

Answer:

a, 15%

b, 150,000

c, $ 3.30

d, = $3,333,333.33

e, $3,833,333.33

Explanation:

To solve this,

Note that we have been given a similar venture to compare to our venture.

The total shareholder's equity for the other venture (P) = $10,000,000 and the net income (E) = $1,000,000

Hence, Price/Earnings (P/E) for other venture = 10,000,000/1,000,000 = 10.0

Now for our venture, Earnings in the 5th year = $500,000

Assuming that P/E ratio for both the ventures to be equal, P/500,000 = 10.0

hence, total shareholder's value for our venture = $5,000,000 --------------- (1)

Now the investor invested $500,000 and expected 50% return after 5 years, hence the investor's value after 5 years would be equal to 500,000 * (1+50%) = $750,000 --------------- (2)

Now percent ownership of venture given to investor = (Value of investor's investment after 5 years/total value of all shareholders after 5 years)

Hence, divide (2) by (1)

percent ownership of venture given to investor = 750,000/5,000,000 = 0.15

or 15%

Therefore Answer to part 'a' is = 15%

Part (b) :For the percentage ownership given to new investor = 15%, total number of shares = 1,000,000

Hence, number of shares issued to new investor = 15% x 1,000,000 = 150,000

Hence, answer to part b = 150,000

Part (c): Amount invested by new investor = $500,000 and number of shares issued to him = 150,000

hence issue price of share = Amount invested / Number of shares issued

= 500,000/150,000 = $3.33

Hence, issue price per share = $3.33

Part (d):

The Pre money valuation is the value of the company before any external funding. In this case, the number of shares held with the founders before the new investor = 1,000,000 and the equity price = $3.33

hence, Value of the venture = 3.33 * 1,000,000 = $3,333,333.33

Hence, pre money valuation of the venture = $3,333,333.33

Part (e): Post money valuation of a company is the value of the company after external funding. In this case, investor invests $500,000 to the venture increasing the value of the company by the same amount.

Hence post money valuation = pre money valuation + Investment

= 3,333,333.33 + 500,000

= 3,833,333.33

Hence, post-money valuation of the venture = $3,833,333.33

7 0

3 years ago

NewDigger Inc. makes backhoes for digging ditches and trenches. It has developed an environmental-friendly liquid that, when pou

Vinvika [58]

Answer: breakthrough

Explanation: In simple words, breakthrough project refers to a project which results or has a potential to result as a sudden and huge development for the organisation.

In the given case, the new chemical product by the organisation is a new invention and can ease the job of the field workers.

Hence it can prove as a breakthrough for new digger.

5 0

4 years ago

The ACME manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 f

raketka [301]

Question Completion:

Since the options are not provided, it is assumed that ACME requires 2,000 units of Component X monthly. Which supplier should the company choose?

Answer:

ACME Manufacturing Company

The supplier that should be chosen is:

Supplier A.

Explanation:

a) Data and Calculations:

Quantity of component X required monthly = 2,000 units

Cost of buying from supplier A = $3,000 + ($2.50 * 2,000) = $8,000

Cost of buying from supplier B = $6 * 2,000 = $12,000

Cost of buying from supplier C = $5 * 2,000 = $10,000

b) This cost decision depends on the quantity of component X required by ACME manufacturing. If the quantity were to be less than or equal to 1,100 units, another supplier other than supplier A might be preferred. Again, if there are other considerations apart from cost, supplier A might not be chosen. The implication is that the choice of a supplier for a component depend on many factors.

8 0

3 years ago

Components inc., a maker of vehicle parts, refuses to sell to diy repair inc., a national vehicle service firm. the maker convin

zloy xaker [14]

Components inc., a maker of vehicle parts, refuses to sell to diy repair inc., a national vehicle service firm. the maker convinces the engine parts company, a competitor, to do the same. this is a group boycott.

Under competition law, a group boycott is a type of secondary boycott, unless two or more competitors in the relevant market agree to deal with an actual or potential competitor of the boycotting firm. Refuse to do business with the company.

Example: The FTC challenged the actions of several groups of competing health care providers, such as physicians, and refused to do business with insurance companies or other purchasers on terms other than those mutually agreed upon. That amounted to a group boycott of the illegal group.

Learn more about group boycott here: brainly.com/question/13894564

#SPJ4

3 0

2 years ago