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evablogger [386]
3 years ago
6

Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in

vestment." His economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins. The economist's analysis in this case incorporates the idea of what?
opportunity costs T/F
Business
1 answer:
Sav [38]3 years ago
8 0

Answer:

TRUE

Explanation:

Opportunity cost refers to those costs that can help us save more money. When we move from one investment to another, then the additional income from the other investment is called opportunity cost.

In this case, if Joe chooses Invest in a bank deposit in the place of Gold coins, he can enjoy 3% more return at the place of no profit and loss, so Joe had loss his 3% opportunity cost.

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The capital impairment restrictions are established to​ ________. A. provide sufficient safety to equity holders B. constrain th
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Answer:

C. provide a sufficient equity base to protect​ creditors' claims

Explanation:

  • The capital impairments are when a company losses its asset and s a sort of restricting that is established to give a sufficient base to the protector credit claims as to when the dollar dividends and adjustment in earnings increases.  
  • The dividend policy will not affect the total values of the forms issued capital and thus the capital impairment will be minimized in a most possible manner.
7 0
3 years ago
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process
Roman55 [17]

Answer:

See attached file

Explanation:

8 0
3 years ago
Capricorn Creative Inc., a U.S. based advertising firm, was the first in the advertising industry to identify the growth potenti
777dan777 [17]

Answer:

Option A-First mover advantage

Explanation:

The first mover advantage is the advantage to the firm who first steps in to take the risks to ensure future benefits in the long term perspective. The particular example includes of TaTa company in India which has more than 90% of the market and was the first company in India that tried to meet requirements of every class of person, small and medium organization to large corporations. This increased production helped the company to gain economies of scale and the country import policies also though do helped the company.

Furthermore, here the advertising firm is not investing but is a means of investment for many investors which means it has no investment in the country and hence there are no forward integration and lateral diversification.

It can also be noted that the company was not transferring its technology in the state option E is also incorrect.

The unrelated differentiation comes when the firm offer its customers a uniqueness of product services which in this case can not be seen prominent. The company advertises similar to other advertises like the other firms and is not pursuing unrelated differentiation so the option C is also incorrect.

3 0
3 years ago
On November 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli's journal entry
Anna007 [38]

Answer:

                                 Dr.          Cr.

Note Receivable   $6,000

Account Receivable            $6,000

Explanation:

Note is received against a payment of sale mad on credit. A new receivable will be built with the name of Note receivable, so this account will be debited.   To deduct the value from the account receivable we will credit the account receivable account due to its debit nature. Later on the interest will be accrued and added in this balance.

4 0
3 years ago
Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:
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<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.


</span>
7 0
3 years ago
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