Answer:
<u>Dingo should reject this project </u>
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Explanation:
sales - operating expenses = controllable margin
controllable margin/operating asset = return on assets
100,000 sales - 86,000 expenses = 14,000
14,000/200,000 = 0.07 = 7%
This project yield 7% which is lower than Ding required rate of return of 9%
Dingo should reject this project of finance it through a lower cost of capital.
When a firm's customers make investments in order to use its particular product or service, the customers incur switching costs if they purchase another firm's products or services instead. Therefore, the option B holds true.
<h3>What is the significance of switching costs?</h3>
The switching costs can be referred to or considered as the costs incurred by the customers of a product or a service when they use the alternatives or the competitive products available in the market, instead of the product they were using earlier.
Therefore, the option B holds true and states regarding the significance of the switching costs.
Learn more about switching costs here:
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When a firm's customers make investments in order to use its particular product or service, the customers incur which type of costs if they purchase another firm's products or services instead?
A. Acquisition costs
B. Switching costs
C. Alternative costs
D. Replacement costs
Answer:
The correct answer is D. Choices that are the best for more than one person are said to be in the social interest.
Explanation:
The social interest is a concept sufficiently clarified in Company Law. The Capital Companies Law refers to it in terms of challenging social agreements: if an agreement is not in accordance with the corporate interest, it can be challenged. It is only negatively contested, that is, if the plaintiff can argue that the agreement is contrary to the social interest, so that it is not a validity requirement that the agreement be in accordance with the social interest. Likewise, if the administrators act against the social interest when they exercise their discretionary powers, they incur responsibility for violation of their duty of loyalty.
Answer:
When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Explanation:
According to the Keynesian perspective, firms produce output only if they expect it to sell.
While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.
Keynes termed a fall in the aggregate demand as a recessionary gap.
A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.
Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
