Answer: Commercial financing
Explanation: In simple words, commercial financing refers to the financing by the banks or other such financial institution. The financing is done by banks in the form of loans which are secured by any relative assets. However, banks sometimes lends on the basis of cash flows.
In the given case, Gordon took a loan from the financial institution for a new home and a boat.
Hence from the above we can conclude that Gordon has used commercial financing.
Answer: Market value of the exiting stock
Explanation: Financial management deals with managing the financial resources that an organisation owns. The manager under financial management tries to bring stability in financial transactions of an organisation.
The main objective of financial management is to maximize the market value of the existing outstanding stock, and this could be achieved only when the financial resources of the organisation are seemed as strong in the eyes of investors.
Answer:
Economies of scale.
Explanation:
In this scenario, the cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The chief financial officer (CFO) of the company, Neha Patel, has determined that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $82.50. The concept that as plant output expands, unit costs decrease, is known as economies of scale.
Economies of scale in microeconomics can be defined as cost reductions or cost advantages that arises when a business entity increases its level of production or are large in size.
This ultimately implies that, when a company chooses a convenient scale of operation or reduce its scale of production, this would lead to a reduction in the cost of production and consequently, some benefits such as lower long-run average cost, increased sales, profits and lower cost price for the consumers of these finished products.
