CA has nothing to do with FDI. Countries often engage in FDI in industries where the country they invest in has a comparative disadvantage.
When a nation's businesses make investments abroad, it promotes comparative advantage CA in the same sector at home.
What is comparative advantage -
The ability to create goods and services at a lower opportunity cost, not necessarily at a higher volume or quality, is referred to as having a comparative advantage.
What is FDI-
An entity based in another country makes an investment in the form of controlling ownership in a company in another country. This investment is known as a foreign direct investment (FDI).
Learn more about CA and FDI here:
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Answer:
The correct answer is d) other than the ones who consumed the product.
Explanation:
An external benefit happens when producing or consuming a good or service, causes a benefit to a third party or person.
For example:
When a constructor builds a new block of apartments, the developer should build access roads to the new construction. The external benefit appears when these roads can be used by the residents of other buildings and the neighbors.
Answer:
B. Advertising focuses on paying for time or space that allows advertisers to disseminate their organization's messages about its products and services; in public relations, credibility helps to earn media recognition.
Explanation:
Public relations involve the creation of a good reputation in society. In public relations, a business engages in activities that create good relations with consumers and the media. The media picks good deeds of the company and writes, thereby promoting the brand name of the business.
A significant difference between advertising and public relation is that advertisements are paid for while public relations is free. Public relations activities will include the business sponsoring publicized events such as sports and art concerts. Participating in charity work is also a way of creating a good reputation. The business benefits by getting an opportunity to promoting its brand name in these events.
Answer:
Dividend paid = (5%× 10,000 × $10) = $5000.
Explanation:
<em>Preference shares entitles the holders to participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>
It can be cumulative and non-accumulate.
Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>
Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>
Dividend in Year 1
Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000
Dividend in Year 2
Dividend paid = (5%× 10,000 × $10) = $5000.
Note that the unpaid dividend of $1,000 in year 1 is lost forever
