A Joint Venture is a strategic alliance in which two existing companies collaborate to form a third, independent company.
Answer:
From the countries point of view with the weaker currency, their goods are relatively cheaper to other countries, and other countries goods are relatively more expensive to this country (Say Country A) as they have a weaker currency.
From the point of view of Country B, with a stable currency, Country A's goods are relatively cheaper because they have a weaker currency.
Due to this scenarios, Country B will export less to Country A than import because Country B will be buying more of Country A's product as it is relatively cheaper. It will export less to Country A because Country B's products are relatively more expensive to Country A due to their weak currency.
Answer:
Paying more cash to its creditors and stockholders than the amount it received from them (1)
Explanation:
Stockholders are the primary owners of the company who have invested their money in the company's shares i.e equity holders and expect a reasonable returns higher than their investment.
Creditors are money lenders like banks i.e debt holders who have given loan or bank overdraft to the company and expecting the company to pay back at an agreed date with interest.
A firm creates value by being able to invest money sourced from various investors into a viable project that guaranteed greater returns than the weighted average cost of capital.
A manufacturer would need to find the production quantity where the marginal rate of return equals marginal costs (this is called the equilibrium point). This would be the point where profits are maximized.
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