Answer:
True
Explanation:
Net Worth = Total Assets - Total Liabilities
When it is positive and the company wants that all financial ratios shall remain constant, that is no change then when there is increase in sales then there will be increase in profits.
Accordingly, in case of operating at full capacity the company shall also increase external financing. As with increase in sales debtors or cash will increase, but if the external finance is increased, net worth will remain same, but if it is not increased, net worth will increase.
Answer:
Continuous innovation
Explanation:
When products can undergo changes without the consumer learning new behaviours, it is called continuous innovation.
On the other hand discontinuous innovation is also called disruptive innovation, and involves consumers learning new skills when using the product.
An example of continuous innovation is in the television industry where revision sets have been upgraded from black and white to coloured, flat screen sets, and so on.
Those are all examples of liabilities. To be more specific, they are <u>current liabilities</u>. Interest payable, income tax payable, and salary payable are obligations that must be paid of within one operational cycle, thus they are just current liabilities.
Current liabilities are debts that must be paid off within a year or one operational cycle, whichever comes first. They can also be paid off using current assets or generate new current liabilities.
Analysts, accountants, and investors assess a firm's payables to determine how effectively it can fulfill its short-term financial obligations thus, the firm basically needs to generate sufficient profits and money in the immediate term to meet its debt commitments.
Learn how to define liability and differentiate between a current liability and a long-term liability: brainly.com/question/28391469
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Answer:
This is called deflation.
Explanation:
Deflation refers to the situation when there is a decline in the general price level, it causes the economy to slow down. It generally happens because of a reduction in the money supply.
The nominal costs of goods and services, labor, capital, etc. decline. But the relative prices, generally remain the same. '
The decline in price is not good for everyone and adversely affects producers. It is also harmful to borrowers. The decline in the price level increases the purchasing power of money.
Sole proprietorships are often owned by financial institutuins
