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Sati [7]
4 years ago
12

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane pr

ices to their customers, even though they could charge much more due to the huge increase in demand. These firms probably recognize that_________.
Business
1 answer:
evablogger [386]4 years ago
7 0

Answer:

The home repair companies and building supplies companies wanted to maintain their long term relationship.

Explanation:

Because the companies were considerate on their pricing after the clients lost their homes, a bond will be formed that has long term value and loyalty to the company.

This is a great strategy to get clients that will stick with the companies for a long time to come.

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Which of the following is incorrect?
Vlad1618 [11]

Answer:

d. A loan received will reduce capital

Explanation:

Capital is the collection of financial assets required to start and maintain a business. Capital is the money required to begin the operations of a business.  The money is used to purchase assets and materials used in the production of goods or services. Capital is either borrowed( debt ) or from the owner's savings ( equity).

A loan is cash borrowed to boost the financial strength of an individual or a business. Should a business opt for a loan, it means it will have more cash to finance its operations. Its ability to produce goods and services is increased. Therefore,  a loan is an addition to capital.

4 0
4 years ago
Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of you
qwelly [4]

Answer:

Following are the solution to the given point.

Explanation:

Calculate each fund's Sharpe ratio. It Fund is the best danger reward with the highest Sharpe ratio.

\text{Sharpe Ratio} = \frac{\text{(Fund return - \text{risk free return)}}}{Volatility}\\\\\to Fund A= \frac{(10\%-4\%)}{10\%} = 0.6\\\\\to Fund B= \frac{(15\%-4\%)}{22\%} = 0.5\\\\\to Fund C = \frac{(6\%-4\%)}{2\%}=1.0\\\\

Fund C consequently offers the best risk-benefit. and without understanding client risk preference, we will advise Fund C for any clients. If a client wants to have a 22 percent minimum volatility, we'll nevertheless propose that Fund C instead of Fund B is available, because an investor can take risk-free rates to the degree that the total portfolio volatility stands at 22 percent and deposit it in Fund C.

8 0
3 years ago
An offer is made to sell a house, and the offeree has deposited an acceptance letter in the mailbox, but it has not been receive
mash [69]

Answer:

False

Explanation:

As the contract was formed when the offeree has deposited acceptance letter in the mailbox, hence the offeror is bond to sell the house.

4 0
3 years ago
When a German company decides to build a new hotel in Manhattan and the design calls for the 13th floor to be renamed the 14th f
Andrews [41]

Answer:

It is acknowledging a cultural symbolism about the number 13

Explanation:

A cultural symbol is an object, a behavior or a word that has a particular meaning in a culture. In Germany the number 13 is considered an unlucky number and they prefer not to use it and this is a cultural symbol. So, according to this, the answer is that the firm is  acknowledging a cultural symbolism about the number 13.

4 0
4 years ago
Sales of watches among teenagers and twenty-somethings are declining rapidly as this age group uses cellphones, iPods, and other
il63 [147K]

Answer:

(A) unrelated diversification

Explanation:

  • The unrelated diversification s a form of diversification that that to the forms of business when they adds up unrelated new products and new lines and penetrates the newer markets.  
  • An example of cake makers entering a furniture market. Thus relates to different and non-related spheres of functioning.
5 0
3 years ago
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