Answer:
3. Interest rates, consumer spending patterns, and level of disposable income
Explanation:
The following alternatives reflects a set of economic forces that would be of interest to entrepreneurs: Interest rates, consumer spending patterns, and level of disposable income
1. Interest Rates: Whenever there is an increase in interest rates, entrepreneurs are required to set aside more funds for the repayment of loans in the sense that the interest component becomes more expensive and looking at the total picture, the loan becomes technically bigger than what they had collected. This occurrence of higher interest rates reduces the business' net income for all periods till the loan is fully paid.
2. Consumer spending patterns: Consumer spending patterns are a very important tool or dataset for businesses which can be used to understand market potential. It reveals customers who are likely to buy certain categories of goods and services and where they are geographically located. Without this information businesses could be located in the wrong places or could target the wrong customers
3. Level of disposable income: Disposable income refers to the amount of income left after taxes are paid. This metrics is important for businesses because that is the fraction of earnings that consumers spend on to buy goods and services.The higher the disposable income, the higher the demand for firms products will be.
Answer:
Preparation of bank reconciliation is shown Below:-
Explanation:
Miller co.
Bank Reconciliation
Aug-31
Cash Balance according to bank statement $3,480
Add: Deposits in transit not recorded by bank $729
Balance $4209
Less: Outstanding checks $796
Adjusted balance $3,413
Cash Balance according to company's records $3,535
Less: Bank service charge $113
Error in recording $9 $122
Adjusted balance $3,413
Answer:
fall
Explanation:
The situation above can be best explained by using the "Liquidity Preference Theory." According to the theory when money supply increases (as in the situation above), the interest rate falls. So, this means that many people will be more willing to invest, thereby resulting to a higher income. On the contrary, if the money supply decreases, the interest rate rises. This may temporarily increase the employment condition, however, it can lead to inflation in the long-run.
So, this explains the answer.
Answer:
Only the fourth statement is correct
Explanation:
The first statement is wrong as stock price can be worth less than its book or par value depending on the performance of the company from which the stock price derives its value.
The second statement is also not correct as convertibility implies that holders of preference shares or bonds are able to convert their holdings into a known quantity of common stock in the future not the other way round.
Dividend payments are fixed for only preferred stockholders,common stockholders are exposed to variable dividend payments which dependent on the performance of the company and the also the company's need for cash.
Limited liability is a protective provision as it aids corporation in raising funds as the investors are certain that their liability in case of the company in the event of the going bankrupt is limited to the amount invested in the company unlike sole proprietorship that could be made to pay debts from private pockets
Answer:
a. Your trade will be executed at the bid price of 55.25.
b. Your trade will be executed at the ask price of 55.50.
Explanation:
First note that:
The bid price is the highest price a buyer will pay for a security.
The ask price is the lowest price a seller will accept for a security.
Therefore, we have:
a. Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the buyer, your trade will be executed at the bid price of 55.25. This is because the bid price is the highest price you as a buyer will pay for a security.
b. Suppose you have submitted an order to sell at market. At what price will your trade be executed? (Round your answer to 2 decimal places.)
Since you are the seller, your trade will be executed at the ask price of 55.50. This is beecausee the ask price is the lowest price uou as a seller will accept for a security.
