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OverLord2011 [107]
3 years ago
15

Six months after starting a quilting business with a partner, Penny finds that actual revenues are significantly lower than proj

ected. The future does not look promising. To alleviate the situation, Penny invests another $50,000 from her savings into the venture. Penny may be suffering from:
Business
2 answers:
pychu [463]3 years ago
5 0

Answer:

escalation of commitment

Explanation:

Penny invest into the business additional funds ignoring the expected outcome of the business (the future returns are not expected to increase)

Penny is not doing the proper analysis of the past six month

The invested funds, time and other resources should not be considered they are sunk cost. The 50,000 will increase the losses not cut them as the return are not going to improve. Additional funds should be invested when there is a financial need due to other project which required more lverage and not to make up for revenues falling behind budget

Penny avoids to acknowle the true fact of the business.

n200080 [17]3 years ago
5 0

Answer: escalation of commitment (sunk cost effect)

Explanation: The escalation of commitment is also known as sunk cost effect or commitment bias and its the typical behavior pattern that Penny is exhibiting. Escalation of commitment occurs when an individual or group continues to dedicate resources (time, energy, money) to a failing course of action. This happens usually because we want to appear consistent or waiting for a turnaround that might not be evident. Penny needs to apply good decision-making to her actions by gathering and analyzing applicable information concerning her investment, prior and after, and then using it to identify the best course of action to take.

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The increase in unemployment that occurs during recessions and depressions is called Group of answer choices normal unemployment
belka [17]

Answer:

cyclical unemployment.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Cyclical unemployment rate (CU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Natural Rate of Unemployment (NU).

A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

Mathematically, cyclical unemployment rate can be calculated using the formula;

Cyclical \; unemployment \; rate \;  (CU) = Actual \; unemployment \; rate \; (AU) - Natural \;unemployment \; rate \; (NU)

Hence, the increase in unemployment that occurs during recessions and depressions is called cyclical unemployment

7 0
3 years ago
A product is scarce when what happens?
blondinia [14]
D. Demand is greater than supply
8 0
3 years ago
Read 2 more answers
What is authorize share​
kap26 [50]

Answer:

Explanation:

Authorized shares are the number of shares that a corporation is legally allowed to issue, while outstanding shares have already been issued. Thus, the number of outstanding shares is always equal to or less than the number of authorized shares.

3 0
3 years ago
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Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist
Goshia [24]

Answer:

e. $42,857.14

Explanation:

The computation of the break-even level of earnings before interest and taxes between these two options is shown below:

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000

40,000 × EBIT = 75,000 × EBIT - $1,500,000,000

35,000 × EBIT = $1,500,000,000

After solving this,  

The EBIT would be $42,857.14

The interest expense

= $320,000 × 6.25%

= $20,000

8 0
3 years ago
“the dry cleaner on the corner is an eyesore.” this is a subjective claim because it
Oxana [17]

‘The dry cleaner on the corner is an eyesore’ is a subjective claim because a subject claim is not something that is factual rather it is an expression or an opinion that an individual says, in which the sentence is an example as it is an expression.

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