Answer:
The best way to find terms of trade that will ensure that two entities are in the best terms of trade will be to look at the opportunity costs of the various products they produce.
A high opportunity cost in one product relative to that of the other entity means the entity with the higher opportunity cost should be trading with the entity with the lower opportunity cost and vice versa.
For example, assume that an entity "A" produces both rice and beans whilst an entity "B" also produces rice and beans too.
If the opportunity cost to A of producing Beans is 300 bags of rice whilst the opportunity cost to B of producing Beans is 120 bags of rice, and the opportunity cost to A of producing rice is 180 bags of beans whilst it is 250 bags of beans to B, the principles of comparative advantage require that A should focus more on producing rice and purchase beans from B whilst B should focus more on producing beans and purchase rice from A.
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Answer:
- Sole Proprietorship
- Partnership
- Limited Partnership
- Limited Liability Company
Explanation:
Sole Proprietorship is the type of business in which the liability is not limited. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.
Partnership is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.
Limited Partnership is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable to for compensation if their is still any amount left.
In the case of Limited liability company, the liability is limited and the burden of the payment of the liability falls on the company. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.
A positive incentive for consumers is a coupon clipped from a newspaper.
Hope This Helps!!
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Answer:
Dog Collar 10,000 units
Cat Collar 15,000 units
Explanation:
We have only constraint of 2,000 hours on the cutting machine.
First we will calculate the Contribution margin per hour
Contribution margin per hour = Contribution margin per unit / Numbers of hours required per unit
Dog Collar = $10 / (6/60)hours = 10 / 0.1 = $100 per hour
Cat Collar = $8 / (4/60) hours = $120 per hour
Pets Inc. will make Cat collar more than dog
Hours required for 15,000 unit of Cat Collar = 15000 x 4 / 60 = 1,000 hours
Hours for Dog Collars = 2,000 - 1000 = 1000 hour
Unit of Dog Collar = 1000 hours / (6/60) = 10,000 units
Answer:
B. an unfavorable balance of trade and payments
Explanation:
- The BOP or the balance of trade is defined as the net gains or net exports that make the balance of payments and is said to be favorable when the country export more and imports less and is a positive change.
- It is said to be negative when the country imports more and exports less thus unfavorable in terms of the trade and payments.
- <u>Hence it means that the country has a deficit and this can impact the services and is not good for the economic growth perspective.</u>
