Answer:
Option D is correct one.
The business risk of a firm: <u>has a positive relationship with the cost of equity for that firm.</u>
Explanation:
Business risk methods a possibility of causing misfortunes or less benefit than anticipated.
The expense of value is the arrival an organization requires to choose if a venture meets capital bring prerequisites back. An association's expense of value speaks to the remuneration the market requests in return for claiming the advantage and bearing the danger of proprietorship.
An organization's all out expense of capital incorporates obligation and value finances that are required to pay enthusiasm on obligation subsidizing and the profits on value subsidizing. The expense of value financing is dictated by evaluating the normal rate of return that could be normal dependent on returns produced by the more extensive market. In this manner, since advertise hazard legitimately influences the expense of value financing, it additionally straightforwardly influences the absolute expense of capital.
Answer:
D
Explanation:
Per capita GDP measures the standard of living of the people in a country. The higher the Per capita GDP, the higher the standard of living
Per capita GDP = GDP / population
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
South Korea operates a market economy compared with North Korea. A market economy leads to greater efficiency in production when compared with a command economy.
A market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions
Characteristics of a market economy
• Private ownership of means of production
• freedom of choice. Producers are free to produce what they desire
• competition among producers
• no government intervention.
A command economy is an economy where production decisions are made by the government.
Answer:
B. Strategic business units (SBUs)
Explanation:
A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. It reports to the headquarters about its operational status.
Answer:
Amount borrow P = $15,026.296
Explanation:
Given:
Amount pay A = $20,000
Number of year n = 3
Rate r = 10% = 0.10
Find:
Amount borrow P
Computation:
A = P[1+r]ⁿ
20,000 = P[1+r]³
20,000 = P[1+0.10]³
20,000 = P[1.10]³
20,000 = P[1.331]
Amount borrow P = $15,026.296