Answer:
False
Explanation:
Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.
<span>Holding cash simply as a financial reserve is referred to as the "speculative" motive.
</span>Speculative motive refers to a strategy that is utilized by financial specialists/merchants to hold money to make the best utilization of any speculation opportunity that emerges later on. Keeping all cash contributed doesn't appear to be appealing constantly. Keeping up a decent lot of liquidity in one's portfolio is one of the best needs for n investor.
For the most part, financial specialists keep a decent measure of such money with them in order to acquire higher benefits.
Answer:
$100 = $10PL + $20PK
Explanation:
Computation for the equation of the isocost line
Using this formula to compute the equation of the isocost line
Total cost=Price of labor (PL)+Price of capital (PK)
Where,
Total cost=$100
Price of labor (PL)=$10
Price of capital (PK)=$20
Now Let plug in the formula to compute the equation of the isocost line
$100 = $10PL + $20PK
Therefore the equation of the isocost line corresponding to a total cost of $100 will be $100 = $10PL + $20PK
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.