Having recently completed a business class, you suggest to Allison that she calculate the <u>"inventory turnover"</u> ratio for her store, and then compare it to other stores in her industry.
Inventory turnover is a ratio indicating how often an organization has sold and supplanted stock amid a given period. An organization would then be able to partition the days in the period by the inventory turnover equation to ascertain the days it takes to move the stock close by. It is determined as deals separated by normal stock. Computing inventory turnover can enable organizations to settle on better choices on valuing, fabricating runs, how to use advancements to move overabundance stock, and how and when to buy new stock. Inventory turnover may likewise be found by partitioning cost of merchandise sold with normal stock.
The more debt used, the greater the leverage a company employs on behalf of its owners.
<h3>
What is financial leverage?</h3>
Financial leverage exists as the usage of borrowed money (debt) to finance the purchase of assets with the anticipation that the income or capital gain from the new asset will surpass the cost of borrowing.
<h3>What is financial leverage example?</h3>
An example of financial leverage use contains utilizing debt to buy a house, borrowing money from the bank to begin a store, and bonds issued by companies.
Debt exists as an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another group, the creditor. Debt stands for deferred payment, or sequence of payments, which distinguishes it from an immediate purchase.
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Answer:
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Answer:
firms are worried that frequent price changes would annoy consumers.
Explanation:
A price is said to be sticky when there are resistance in market price to change immediately even when changes in the economy of a particular country entails differing price of products is optimal.
In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.
Hence, prices tend to be sticky because firms are worried that frequent price changes would annoy consumers. This ultimately implies that, price stickiness arises due to the fact that business firm or entity are very much concerned or worried that a frequent change in the price of goods and services would make the consumer annoyed.
Answer:
Option A Increase in consumer wealth
Explanation:
The reason is that when the consumer wealth increases his purchasing power increases which enables him to opt to items which greater in value and also that the person starts satisfying his personal needs and wants which means that the person is spending more and if the person is spending more then the aggregate demand of the product and services will increase. Furthermore the increase in taxes, costs and value of US dollar decreases the demand because it increases the prices of the product and increase in price of the product or services decreases the demand of the product both in the domestic and international market. So the right option is A.