Answer:
best combination of resources to use to produce a product.
Explanation:
Capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.
Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.
In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.
Hence, the profit and loss system of capitalism helps entrepreneurs determine best combination of resources to use to produce a product.
Answer:
<u>A. The illiquidity of the investment</u>
<u>Explanation:</u>
This rightly could be considered as the MOST important item to disclose to a customer who invests in a fund of hedge funds. Let's imagine a customer who invests in a hedge fund and a few days later feels he could take back out from his investment, only to learn about the illiquid nature of hedge fund investment.
For clarity, to say that<em> hedge funds are illiquid means that they require all investors to keep their money in the fund for at least one year, </em>often called the lock-up period. With certain limitations on withdrawals.
Answer:
D. Riley buys new windshield wipers for her car.
Explanation:
By definition unsought goods are those which are not purchased out of want or desire, but the purchases of which arise due to any of the following circumstances:
- danger - for example a fire extinguishers sought in the incident of a fire
- fear - for example the fear of crashing into another car (in this case)
- unexpected events - for example funeral services sought at the time of death
Answer:
The following are the advantages of maintaining books of original entry: (i) Future references to transactions become easy as transactions of similar nature are recorded in one journal. (ii) Mistakes in ledger accounts can be easily detected. (iii) Chronological recording of transactions reduce the chance of frauds.
Explanation:
Answer:
$20.52
Explanation:
Given that
Estimated dividends for next period = $3.90
Required rate of return = 25%
Growth rate = 6%
The computation of Price of stock is given below:-
Price of stock = Estimated dividends for next period ÷ (Required rate of return - Growth rate)
= $3.90 ÷ (0.25 - 0.06)
= $3.90 ÷ 0.19
= $20.52
Therefore for computing the price of stock we simply applied the above formula.
