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2 years ago

Which of the following is a potential danger of offering common stock to investors

Business

1 answer:

PtichkaEL [24]2 years ago

3 0

Answer:

The common stock does not allow the entrepreneur to raise enough money.

Explanation:

Common stock is the kind or type of the equity share which is issued by the entity or a corporation. The buyers of the common stock are known as the shareholders.

The common stock owners have no guarantees, but to accept the risk in exchange for the potential or higher gains rather than the safer investments. Though the liability of the shareholder is limited to the price paid for the common stock. It is considered to be a high risk investment.

So, the danger of offering the common stock is that it will not allow the business to raise adequate money.

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A trading arrangement that eliminates most or all barriers to trade among participating nations and utilizes common barriers to

Katen [24]

Answer:

preferential trade agreement

Explanation:

This agreement is known as a preferential trade agreement. It is called this because it tends to make it easier for specific goods to be traded but only to the countries that are part of the group and/or agreement. This agreement also makes it harder for countries that are not part of the agreement to be able to trade with the countries that are in order to maintain the countries within the agreement trading with each other.

4 0

3 years ago

When a company owner practices price discrimination, the marginal revenue of an extra unit sold.

Kamila [148]

When a business owner uses price discrimination, the marginal revenue curve and the market demand curve are in line, therefore the marginal revenue is the same as the product's price.

The additional money made by selling one more unit of output is known as marginal revenue. The law of diminishing returns eventually leads marginal revenue to start dropping as output level grows, even though it can stay constant at a certain level of output.

The incremental cost or profit made when producing the following item is referred to as marginal. While marginal cost is the additional expense for producing one extra unit, marginal product is the increased revenue.

To know more about marginal revenue

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5 0

1 year ago

Discuss some of the ways technology is making it possible for consumers to avoid advertising messages and the impact this is hav

poizon [28]

Answer:

Technology has advanced in this era to ease the life of humans. The latest technology is used by the businesses to provide their customers best services. The technology has also provided customers to reject and stop unwanted advertisements. They can block the advertisement messages they do not wish to receive any more.

Explanation:

The technological advancement has provided ways for business development to media and advertisement industry but it has also created negative impact to the industry. The customers block the advertisement messages which they do not find feasible. The advertisement may go wasted because the impact of advertisement did not reached the customers.

8 0

2 years ago

____ is called the "first" management function because all other management functions depend on it.

Papessa [141]

Answer:

Explanation:

A statement of the basic purpose that makes the organization different from others.

8 0

3 years ago

Read 2 more answers

Top management at Prinze Auto Sales has decided to replace their traditional marketing approach with an approach that emphasizes

Citrus2011 [14]

Answer:

2. False

Explanation:

Relationship management is considered an important part of CRM (customer relationship management) and it emphasizes on building and increasing customer loyalty and long term commitment.

If this company was to replace their traditional marketing approach with relationship marketing, they would devote more time to build a solid relationship with existing customers and less time searching for new customers.

5 0

2 years ago