Answer:
c. There is an "opportunity cost" associated with using reinvested earnings, hence they are not "free."
Explanation:
When the reinvested earnings are invested that is basically the earnings associated with reinvestment would earn the same like that earned by the investment if not withdrawn and invested.
Let us say for example: Amount invested = $1,000
Return on such investment = $100
Now if such earnings are also reinvested then
Earnings = $110
Now if this $110 is used rather than investing again, then there is the opportunity cost of earning $11 on such reinvestment.
Thus, statement c is correct.
Answer:
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Explanation:
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Answer:
C. Car dealerships cannot sell their stock
There are four scenarios as following:
a.) Car dealerships have minimal overstock.
b.) Car dealerships are not restocking.
c.) Car dealerships cannot sell their stock.
d.) Car dealerships cannot obtain stock.
=> The answer is C
Explanation:
Recession is the term used to describe the situation when a country suffer from the negative economic growth (indicated in the negative GDP growth rate).
The recession is considered the result of the economic downfall of that country, resulting in the decrease in capital inflow, slowing down the production and increasing the unemployment rate in that country. Consequently, the wage of people there would decrease, lowing their consumption. So that with lower demand and level of expense of the market, the <u><em>car dealerships cannot sell their stock.
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