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3 years ago

Which of the following is correct?

Business

1 answer:

PtichkaEL [24]3 years ago

5 0

Answer:

C. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Explanation:

The unemployment rate is a determinant in the country's standard of living because this phenomenon derives in loss of income in the families, that at the same time reflects in a decrease of the spending power and this also can result in an increase in the debt problems which they don't have enough to pay.

On the other hand, in complex economies, unemployment is measured in 5 ways: cyclical, structural, seasonal, frictional and institutional. Some of these types could reach 0 but others will remain so it would be inevitable to have some degree of unemployment.

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Pete's Market is a small local grocery store with only one checkout counter. Assume that shoppers arrive at the checkout lane ac

levacccp [35]

Answer:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

Explanation:

How did Carter plan to achieve his goals regarding the hostages?

Check all of the boxes that apply.

Convince Iran that the real danger was the Soviet Union, not the United States.

Team up with Iraq to invade Iran.

Get help from other countries to express disapproval of Iran’s actions.

Send many troops in to free the hostages at any cost.

5 0

3 years ago

Two online magazine companies reported the following in their financial statements: BetterWorth Outdoor Fun 2018 2017 2018 2017

Rudik [331]

Answer:

BetterWorth and Outdoor Fun ROE and P/E Ratio Analysis:

1-a) Computation of 2018 ROE for each company.

ROE = Return on Equity. It is a percentage of the net income over equity. It is best to use the average equity, if given two balance sheets. See explanation for further clarification.

Average Equity = Two balance sheets' equity divided by 2.

BetterWorth's Average Equity = (597,186 + 522,814) / 2 = 560,000

Outdoor Fun's Average Equity = (457,151 + 477,049) / 2 = 467,100

BetterWorth's 2018 ROE = 111,000 / 560,000 x 100 = 19.82%

Outdoor Fun's 2018 ROE = 92,420 / 467,100 x 100 = 19.79%

1-b) BetterWorth's appears to be generating greater returns on stockholders' equity in 2018. It generated 19.82% as against Outdoor Fun's 19.79%, especially with the use of average equity.

2-a) Computation of 2018 P/E Ratio for each company:

P/E Ratio = Price/Earnings Ratio. It is expressed as the market price per share divided by earnings per share.

BetterWorth's 2018 P/E Ratio = 54.90 : 3.4 = 16.15 : 1

Outdoor Fun's 2018 P/E Ratio = 33.05 : 2.30 = 14.37 : 1

2-b) Investors appear to value BetterWorth more than Outdoor Fun. This is because investors are ready to pay 16.15 times more for each unit of the earnings of BetterWorth. For Outdoor Fun, investors are only willing to pay 14.37 times more for each unit of its earnings.

Explanation:

A) ROE = Return on Equity. It is expressed as a percentage of net income over average equity. In the above calculations, we used the average equity. The reason is this: average equity smoothens the mismatch between the income statement and the balance sheet.

But, what does ROE measure? It measures a company's management effectiveness in using assets to make profits for shareholders.

Had we used the 2018 equity, Outdoor Fun would have appeared to have performed relatively better than BetterWorth over ROE.

B) P/E ratio relates a company's share price to its earnings. The P/E ratio shows that the company's stock is overvalued or undervalued. It depicts investors' confidence or lack of it in the company's ability to produce more or less earnings. Without earnings expectation, investors cannot price a company's stock highly. It is therefore a stock valuation tool widely used by financial analysts and investors.

6 0

3 years ago

If a price is too high to clear the market, that means

kipiarov [429]

Answer:

If a price is too high to clear the market, that means the quantity of supplies have exceeded the amount that is demanded.

Explanation:

Have a great summer :)

6 0

3 years ago

Read 2 more answers

Access to local partner's knowledge and shared development costs and risks are advantages of which foreign market entry mode

balandron [24]

Joint ventures have access to local partner's knowledge and shared development costs and risks are advantages in this foreign market entry mode. A joint venture often gives companies access to new markets. Two or more companies come together to benefit themselves and stay their own company.

4 0

3 years ago

A consumer has a choice of spending $20,000 on a Honda or $14,000 on a Kia. She was observed buying a Kia during the weekend. Do

max2010maxim [7]

Answer: Not necessarily

Explanation:

Consumer purchase decisions are dependent on multiple factors such as price, income and preference. It could be that the customer purchased the Kia because the price was less than that of the Honda and so she wanted to save and costs and bought the less expensive choice.

It could also mean that the Kia was all she could afford based on her income so she bought that. It could however also mean that the Kia is her preference as compared to the Honda so she chose that instead.

It is therefore not a foregone conclusion that she bought the Kia simply because she preferred it. More information would be needed to reach that conclusion definitively.

7 0

3 years ago