As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of diminishing marginal utility.
<h3>What is utility?</h3>
It should be noted that utility simply means the satisfaction that's derived from using a good or service.
In this case, as a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of diminishing marginal utility.
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D. Ronald would be committing stock fraud if he exercises the options.
Explanation:
The first three options are valid reasons to turn down the offer of stocks in place of salary.
A. Stocks with high returns have high volatility, and Ronald's company may not grow further.
B. Ronald may be taxed more for capital gains than he would be for employment income.
C. Stock options are illiquid, and Ronald may not be able to use them to pay for unexpected bills.
Option D is NOT a valid reason to turn down the stock offer. So, the answer is:
D. Ronald would be committing stock fraud if he exercises the options.
C. It can guarantee business success
Answer:
Dysfunctional turnover
Explanation:
Dysfunctional turnover refers to a situation where both highly qualified and efficient employees and less efficient employees resign form a current job. Dysfunctional turnover will make the business's normal activities suffer since it is usually considered normal and healthy for a business to get rid of inefficient workers, but when efficient workers also quit then who is left to carry on the business efficiently?
When Brad John talks about the fact that he is going to have to create different financial plans depending on the amount of business the company is bringing in, he is referring to a cash flow plan. It estimates short and long-term expenses against projected incoming cash. This is a form of anticipation through creating cushion intended for unexpected expenses.
