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Maru [420]
4 years ago
7

Kurt leased a small building and converted it into a hockey supply shop. He had assumed that he could run a successful business

if he had enough money to get started. However, his business faces seasonal variations in sales. He now finds it difficult to meet the day-to-day expenses of the business. Which problem is Kurt's business facing?
a.competition

b.lack of startup capital

c.bureaucracy

d.inability to cope with growth

e.undercapitalization
Business
1 answer:
salantis [7]4 years ago
8 0

Answer:

The correct answer is letter "E": undercapitalization.

Explanation:

Undercapitalization refers to the situation in which an organization is unable to generate enough funds to cover its expenses. This leads to companies being unable to pay their creditors, thus, they have no other option but to request for loans to keep the business up and running. Small companies are frequently undercapitalized.

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Rogers Radiators has net income of $48,200, sales of $947,100, a capital intensity ratio of .87, and an equity multiplier of 1.5
Assoli18 [71]

Answer:

ROE= 6%

Explanation:

Return on equity is the measure of a business profitability as related the owner's equity. It shows how well a company is making profits on shareholder funds.

Return on investment (ROE)= Profit Margin * Capital intensity ratio * Equity multiplier

To calculate the profit margin

Profit margin= Net income/Gross Income

Profit margin= 42,800/947,100

Profit margin= 0.045

Substitute in formula for ROE

ROE= 0.045* 0.87* 1.53

ROE= 0.06= 6%

5 0
3 years ago
Shirley qualifies for a $12,000 auto loan and chooses a 36-month loan term versus a 60-month loan term. How will the shorter ter
Lyrx [107]
The right answer for the question that is being asked and shown above is that: "B. Shirley's car will appreciate in value." Shirley qualifies for a $12,000 auto loan and chooses a 36-month loan term versus a 60-month loan term. The shorter term of the loan affect Shirley is that her<span> car will appreciate in value.</span>
6 0
3 years ago
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Suppose that video game discs are a normal good. If the incomeof video game players increase, you predict that in the market for
arlik [135]

Answer:

Option (D) is correct.

Explanation:

It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.

Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.

5 0
3 years ago
Which examples demonstrate tasks commonly performed in Visual Arts jobs? Check all that apply. Cliff sets up video equipment at
marysya [2.9K]

Answer:

3, 5, 6

Explanation:

On e2020

7 0
4 years ago
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Suppose that for the economy of​ Utopia, we have the following information for​ 2018: consumption expenditures​ = $5,000; wages​
Elan Coil [88]

Answer:

$8,000

Explanation:

Consumption expenditures​ = $5,000

Wages​ = $3,500

Gross private domestic investment​ = $1,200

Government expenditures​ = $2,000

Exports​ = $900

Imports​ = $1,100

Through expenditure approach,

GDP = consumption (C) + investment (I) + government spending (G) + net exports (X – M)

= $5,000 + $1,200 + $2,000 +  ($900 - $1,100)

= $8,200 - $200

= $8,000

7 0
3 years ago
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