Answer:
The correct answer is option c.
Explanation:
An increase in interest rate can be because of an increase in demand for loanable funds or decrease in the supply of loanable funds.
Suppose most businesses decide t modernize and install new equipment. For this, they need to invest more. This will cause an increase in the demand for loanable funds. This increase in demand for loanable funds will be represented by a rightward shift in the demand curve.
This rightward shift will cause the interest rate to increase.
Answer:
The answer is: true
Explanation:
Rational behaviour entails making decisions or taking actions that result in maximising utility or satisfaction. The time value of money dictates that the opportunity cost of foregoing earning potential today is the interest accrued on the savings for future use. A rational consumer who wants to maximise utility will always take the $2,000 dollar cash back since the implicit interest incurred by taking the 0% financing results in a lower future value (in 5 years).
Answer:
$3,000
Explanation:
<em>The historical cost principles states that asset purchased are to be recorded at their initial cost of historical cost value. </em>
<em>According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of an asset includes all of the cost necessary to bring and make it ready for the intended use. </em>
These costs include purchase cost, fees and commission associated with the purchase transaction.
Going by this principle, the computer should be recorded at the purchase cost of $3,000
Answer:
The law firm is likely to be a sole proprietorship.
Explanation:
The ABC Law Firm has a few senior individuals who share the firm's debts, work, and profits. If the firm were to fail, those individuals could be forced to use personal assets to cover the firm's debts.
These characteristics indicate that ABC is a partnership business.
A partnership is a formal agreement between two or more people to own and operate a business. In a partnership, there are unlimited liabilities. The business is not a separate entity from the owners. The partners share the liability and profits equally.