Answer: account receivable account
Explanation:
The accounts receivable account simply refers to an asset account on the balance sheet which represents the money that is due to a business in the short term. It should be noted that the accounts receivables are created when goods are bought on credit by the buyer.
In such case, when the goods are sold on credit to the buyer, this will lead to a debit on the account receivable account and this will bring about an increase to the company's assets.
Answer:
8.76%
Explanation:
Using the CAPM formula:
Ke = Rf + Beta Factor * Risk premium
Here
Rf is 5%,
Beta Factor is 1.6
And
Risk Premium is 6%
By putting values, we have:
Ke = 5% + 1.6 * 6%
Ke = 14.6%
Now we will find new firm's cost of equity under 40% debt by simply multiplying it with the equity percentage:
Weighted Cost of Equity = 14.6% * 60% = 8.76%
Answer:
decline and product diversity in the market increases.
Explanation:
Competitive price searcher markets are those that have little barriers of entry for new firms.
Also the new forms are able to engage in transactions that are profitable. That is they easily take a market share.
In this scenario it will result in greater diversity of products as many firms can now produce goods that will be profitable in the market.
Also it will lead to a decrease in profit of existing firms as the new firm gets some of the market share
Answer:
A- Group think
Explanation:
In group think, bad decisions are often made because, rather than consider other alternatives, a group of people agree to a decision suggested by, in most cases, the most superior party in the room.
This form of thinking hides true opinions of other members of the group and though the decision is agreed upon, they could truly not want to be a part of the process.
In this scenario, there is an agreement with the Senior Executive on the plan of action however, nobody is interested in taking up the responsibility to follow through with the plan. This indicates a level of disagreement of other members with the plan regardless of the initially stated agreement with the plan.
