This relates to liability of business owners. When a company has unlimited liability and starts losing money, the owners can be personally liable for losses meaning their home and personal assets could be lost. Limited liability means they can only lose the amount that they invested in the company and none of their personal assets.
Answer:
19 is added to the gdp
Explanation:
6 (bag of oranges) + 6(bag of oranges) + (12-6)(juice) + (7-6)(bag of oranges) = 19 is added to the gdp
In this case I'm using the income approach to calculate GDP, which includes the income earned by wages to labor (not present), rent by land (you may say that the original bag of oranges), the return on capital (interest, not present),and entrepreneur’s profits (juice and grocery store)
Answer:
C. total variable cost increases
Explanation:
Fixed cost, as the name states, do not change with a variation on production output, therefore an increase in the sales volume does not change the fixed cost. Meanwhile, variable cost is the cost associated with the production of each unit, and thus depends on the sales volume. An increase in the volume of sales leads to an increase in total variable cost.
Therefore, the answer is C.
Answer:
A transformational process is a process by which we achieve lower costs, increased efficiency or level of output, higher quality of product, anything that brings competitive advantages over rivals.
So this means that Transformational process doesn't includes lowering product quality and efficiency or output.
Option 1 is incorrect because it talks about increasing production by decreasing product quality.
Option 3 is also incorrect because it talks about increasing inefficiency. Remember: Efficiency is increasing output at a set level of input.
Option 4 is also incorrect because transformational process doesn't includes the selling of inputs. Inputs are raw material, labor hours, overhead cost, etc these are not sold by any companies. However their is a possibility that semi finished goods are sold to other companies like Apple purchased Mobile displays from Samsung to meet its customer demand.
But its impossible to sell its labor, raw material which is readily available in the market.
Option 5 is also incorrect because corrective actions are taken when there is something going wrong. When the level of output is increasing from the desired output level it means its an achievement. So this is not correct option.
Option 2 is correct because conversion of inputs into ideas or products will result in competitive advantage. For example, Mercedes first time in the history introduced two door car. This helped Mercedes to lower its material cost sufficiently and Price of the car as well. As a result this increased its sales due to lower prices charged.
Transformational Processes includes activities of converting your resources into more efficient assets which is reflected in this option.
