According to the <em>"Not Too Big Enough" </em>article, some of the <em>sources of </em><em>scale economies</em><em> in the banking and finance industry</em> are as follows:
1. Bigger banks can spread their investment (fixed) costs over more output, thereby <em>reducing the </em><em>cost per unit </em><em>and making it impossible for </em><em>smaller banks </em><em>to compete in the market</em>. Most often, the smaller banks cannot afford investments in modern banking computing power and systems management.
2. Bigger banks can <em>consolidate banking functions</em> with the <em>elimination of redundancies </em>after each merger and acquisition. The cost of redundancies also gives them economies of scale.
3. Bigger banks have access to <em>larger pools of </em>deposits and will not engage in borrowing at higher costs. Smaller banks cannot tow this line because of their small scale, lacking the required funding mix.
4. Finally, advertising works best where a bank has a large geographic spread. The cost of advertising over a large area is worth it, unlike when a small bank markets its services by advertising.
2. These economies of scale mean that Oligopolies are increasing on Wall Street, and there will be further consolidations of smaller banks. Of course, every small bank would like to engage in mergers and acquisitions to grab a share of the scale economies.
Thus, <em>as banks grow large</em>, they should be mindful that enjoying the scale economies comes with the risk of crumbling like the banks regarded as <em>"too big to fail" </em>when they build on a pack of cards.
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The current lot size of 235 is too large.
We use the given data to find the Economic Order Quantity or EOQ and then compare it to the lot size of 235.
Economic Order Quantity is used to arrive at the optimum purchase order for goods (in number of units) while minimizing ordering and handling costs.
The formula for calculating EOQ is:
Q = 
,
where :
Q is the order lot in number of units
D is the annual demand for the product
S is ordering cost per order (in $)
H is holding cost per unit (in $)
We can arrive at the annual demand for the product as follows:
Annual Demand = No. of units sold per week * No. of weeks the store operates
Annual Demand = 50*52 = 2600 units
Order cost = $20
Holding Cost = Holding Cost (in %) * Selling Price
Holding Cost = 20%*$40 = $8
Substituting the above values in the EOQ formula, we get,
Q = 
= 114.02 units.
Comparing the EOQ we just calculated and the given lot size, we arrive at the answer above.
Answer:
Specialists cannot trade for their own accounts.
Explanation:
The NYSE operates with a system of individual securities "specialists" who work on the NYSE trading floor and specialize in facilitating trades of specific stocks. A specialist is simply a type of market maker
<h3>Question:</h3>
•explain six Differences between private and public company.
Answer:
•In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering.
Explanation:
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Answer:
The answer is: D) $34,300
Explanation:
The selling price was $35,000 with terms 2/10, n/30. This means that if the buyer pays their bill before the ten days period, they will get a 2% discount. If the buyer pays the bill after the ten days period but before thirty days, they will pay the full amount.
Since the buyer paid before the ten days period they will get a 2% discount. The total cash received by Banks Company was $35,000 x 98% = $34,300
