Answer:
option A
Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.
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Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.
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Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.
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Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.
A sociologist might say that this is an example of how economic action is <u>embedded in</u> social relationships.
<u>Explanation:</u>
In the case of lending money (for a vehicle or a mortgage for example), this may be an indication of irresponsible lending practices. If there is a substantial increase in bad debts, it means that less creditworthy borrowers (borrowers who are less capable or likely to repay) are obtaining credit too easily.
In the case of bad accounts receivable for a company, there are similar implications, but it also could mean that the inventory that a company is selling is not being sold quickly enough by the retailer. One example could be ToysRUs having overdue accounts due to its partnered toy makers, such as Hasbro. It could be a sign that the demand for the product is not sufficiently high to sell the full amount of purchased inventory, at least when being sold through that retailer.
Answer:
A
Explanation:
If the company has introduced a loyalty program, customers are less likely to patronise other business. Thus, the threat of new entrants is reduced as firms would be less likely to enter into the industry knowing there is a high degree of customer loyalty to company XYZ
A lot of nations often produce different types of goods. Nations specialize in production and engage in international trade in order to increase output and income.
- There are several reasons why nations specialize and engage in trade. The obvious reason is the principle of comparative advantage.
This principle states that each country should focus in the products that it can produce most steadily and cheaply and trade those products for goods that foreign countries can produce most readily and cheaply.
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