Answer:
1. Which Statement is true:
B. low p/e ratio could mean that the company has a great deal of uncertainty in its future earnings.
2. Qualitative analysis:
According to your understanding, a company with less competition is considered to be (more or less) risky than companies with a wide multiple competitors.
Explanation:
Company A's Price/Earnings (P/E) ratio is calculated as the market price of its shares divided by the earnings per share. It shows the value investors have over a stock. With a high P/E ratio, the company's stock could be over-valued, or investors are expecting high growth rates in the future. This is unlike a low P/E ratio that shows that the stock is undervalued or that investors are not expecting high growth rates in the future because of uncertainty.
Without competition, Company A is riskier than Company B which operates efficiently and competitively. There is that competitive edge that competitive companies possess. Monopolies do not enjoy that advantage. It is, therefore, riskier to have no competition.
Answer: D) poor planning.
Explanation:
It is in the Planning Stage that expectations are penned down. If this is not set out, people will.not know what is expected of them and as such will move with no specified DIRECTION on projects. In such a situation, business objectives can rarely be met.
Indeed, Poor Planning is one of the major causes of LOW PRODUCTIVITY and PROFITABILITY which is what West Side Groceries is currently going through.
Answer:
Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor. In turn, increasing employment has been crucial in delivering higher growth.
The unemployment rate will be of 10% of the economy. We can only have in mind the Million people who are actively seeking work in here which is in itself what is taken into account when talking about economy's unemployment rate. Remember also that the unemployment rate that is consistent with full employment known as the natural rate of unemployment.
