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butalik [34]
4 years ago
9

Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, h

e immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.
Business
1 answer:
stiks02 [169]4 years ago
5 0

Answer:

shoe-leather costs

Explanation:

Inflation is a persistent rise in general price levels.

shoe-leather costs of inflation is the cost in terms of  time and effort spent by individuals in reducing their cash holdings in order to avoid paying inflation tax.

Bob's shoe cost of inflation includes :

1. the time and effort expended in going to purchase items immediately he is paid

2. the time and effort expended in converting the money he didn't spend to a more stable foreign currency.

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When savings accumulate beyond what may be needed for short-term goals and emergencies, then you have money available for invest
sasho [114]

Answer: True

Explanation:

 Yes, the given statement is true that the short term goals are refers to the goals that is achieved in short period of time by establishing a proper financial planning and also manage our expenditure for the purpose of investing the various types of goals.

According to the given question, For the purpose of investing we need availability of the money for setting the each goals in prioritized way and also eliminating the credit and debt funds.  

 Therefore, The given statement is true.

7 0
3 years ago
"PDQ Corporation has declared a rights offering to stockholders of record. The company has 5,000,000 shares outstanding and is s
Nimfa-mama [501]

Answer: C. II and III

Explanation:

There are 5,000,000 shares of PDQ Corporation as of when they declared the rights offering. This means that every share will get a right to buy stock.

However, as only 1,000,000 shares are being offered per the 5,000,000 shares outstanding it means that one stock may be purchased for every 5 rights.

A customer who owns 500 shares will therefore get 500 rights.

However with one stock up for sale per 5 rights they will receive the opportunity to buy;

= 500/5

= 100 shares

5 0
4 years ago
Yakov left his job as a plumber when his wife took a position in another region. the quantity of plumbing services demanded is c
tatiyna

Based on the scenario above, it illustrates structural. The structural unemployment happens when an individual’s cause of being unemployed was because of the reason that the skills that the individual has is not matched or paired up with the economy in which it offers.

8 0
3 years ago
Travis Corporation begins the year with $50,000 of tire inventory. The company purchases tires worth $150,000 during the year. A
bekas [8.4K]

Answer:

$170,000

Explanation:

Given that,

Travis Corporation begins the year with $50,000 of tire inventory that means inventories in the beginning of the year.

Purchases of tires during the year = $150,000

At the end of the year,

Purchase cost of remaining inventory = $30,000

Therefore,

Cost of goods sold:

= Beginning inventories + Purchases - Ending inventories

= $50,000 + $150,000 - $30,000

= $200,000 - $30,000

= $170,000

6 0
3 years ago
What is the primary goal of business​
solong [7]

Answer:

Profit making and survival

Explanation:

The main objectives that a business might have are: Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.

7 0
3 years ago
Read 2 more answers
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