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guajiro [1.7K]
3 years ago
9

An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.

Business
1 answer:
kari74 [83]3 years ago
4 0
I believe the correct answer is false. <span>An attractive business climate is not defined by only one dimension: it minimizes the political risk to a company. Other than this, there are other indicators present. Hope this answers the question. Have a nice day.</span>
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suppose that due to unfavorable growing conditions, this year’s global coffee crop was unusually small. what can we assume about
nekit [7.7K]

The short-run price elasticity of demand will be inelastic and the short-run price elasticity of supply will be inelastic.

Elasticity of demand measures the relationship that exists between price and quantity demanded.

Elasticity of supply measures how quantity supplied changes when there is a change in the price of a good.

<u><em>Types of elasticity.</em></u>

  1. Elastic demand (supply): This means that demand (supply) is sensitive to price changes
  2. Inelastic demand (supply): this means that demand (supply) does not respond to price changes. The coefficient of elasticity is less than one.
  3. Unit elastic demand (supply): demand (supply) changes in equal proportion. The coefficient of elasticity is equal to one.

<em><u>Factors that affect elasticity </u></em>

  1. The number of substitutes the good has: the more substitutes the good has, the more elastic demand is.  
  2. The length of time: demand (supply) is inelastic in the short run. In the short run, producers (consumers) do not have enough time to find suitable substitutes.  In the long run, producers would have more time to search for suitable substitutes or shift to the production of other goods when compared with the short-run.
  3. Ease of entry or exit into an industry: the more easy it is for firms to enter into an industry, the more elastic supply would be.  

To learn more about elasticity of demand, please check:

7 0
3 years ago
You would like to purchase one Class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a
Bumek [7]

Answer:

The current​ bid/ask spread for Berkshire Hathaway Class A​ shares is $935

Explanation:

The computation of the current bid/ask price is shown below:

The Current bid/ask price = Ask price - Bid price

                                   = $263,810 - $262,875

                                   = $935

The commission amount should be ignored in the computation part. Hence, it will not be considered as it is not relevant.

5 0
3 years ago
How do large corporations benefit from the presence of small businesses?
m_a_m_a [10]

I would choose D.  By outsourcing certain processes to small businesses

6 0
3 years ago
Read 2 more answers
We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage value. Assume that depreciation is s
AleksandrR [38]

Solution :

a).

Particulars                                                Details

Selling price per unit                                 37

Less : variable cost per unit                     -21

Margin per unit                                           16

No. of units sold per unit                       70,000

Gross margin                                        11,20,000

Less : fixed cost                                     - 7,25,000

Profit before depreciation and tax       3,95,000

Less : depreciation                                -80,500

Profit before tax                                     3,14,500

Less : Tax                                               -1,10,075

Net profit per year                                 2,04,425

Project Cost                                           6,44,000

Accounting breakeven point in years     3.15

b).

Calculating the base Cash - Cash flow and NPV

Particulars                                                       Amount

Net profit per year                                        2,04,425

Add : depreciation                                         80,500

Base Cash cashflow                                     2,84,925

Required rate of return                                    15%

Present value of base cash cash flow        12,78,550

received in 8 years.

Project cost                                                  -6,44,000

NPV                                                               6,34,550

The present value of base cash cash flow received in 8 years is calculated as Present value of annuity received at the end of each year $ 2,84,925 at the rate of interest 15% for a period of 8 years.

The sensitivity of the NPV to 500 units decrease in projected sales :

Particulars                                                          Details

Selling price per unit                                            37

Less : variable cost per unit                                -21

Margin per unit                                                     16

Number of units sold per year                          69,500

Gross margin                                                      11,12,000

Less : fixed cost                                                -7,25,000

Profit before depreciation and tax                   3,87,000

Less : depreciation                                            -80,500

Profit before tax                                                 3,06,500

Less : tax                                                            -1,07,275

Net profit per year                                             1,99,225

Add : depreciation                                              80,500

Base Cash cashflow                                          2,79,725

Required rate of return                                         15%

Present value of base cash cash flow              12,55,216

received in 8 years.

Project cost                                                    -6,44,000

NPV                                                                6,11,216

Original NPV                                                  6,34,550

Sensitive NPV                                                  -23,334

c).

Particulars                                                              Details

Selling price per unit                                               37

Less : variable cost per unit                                   -20

Margin per unit                                                        17

No. of units sold per year                                     70,000

Gross Margin                                                         11,90,000

Less : fixed cost                                                     -7,25,000

Profit before depreciation and tax                       4,65,000

Less : Depreciation                                                -80,500

Profit before tax                                                     3,84,500

Less : tax                                                                -1,34,575

Net profit per year                                                  2,49925

Add : depreciation                                                   80,500

Operating cash flow                                               3,30,425

Original operating cashflow                                   2,84,925

Sensitivity of OCF                                                      45,500

7 0
3 years ago
Suppose you work for a municipal water department for a city with 200,000 people, and your job is to design a program that ensur
olasank [31]

Answer: i really dont know im just trying to get points so i can ask a question

Explanation:

4 0
3 years ago
Read 2 more answers
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