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dangina [55]
3 years ago
5

Explain the importance of profit to the economy.

Business
1 answer:
Kay [80]3 years ago
4 0

Answer:

Explanation:

Profit is the surplus revenue after a firm has paid all its costs. ... In a capitalist economy, profit plays an important role in creating incentives for business and entrepreneurs. For an incumbent firm, the reward of higher profit will encourage them to try and cut costs and develop new products

You might be interested in
In his 1935 book, Harold Laswell described politics as "Who Gets What When How." The American concept of pluralism, or group pol
KatRina [158]

Answer:

D) influencing decisions affecting one's life.

Explanation:

Pluralism is an American theory of governance that states that political power is controlled by several groups of people and not the citizens as a whole. These several groups of people constitute organizations, activists, environmentalists, and other impactful groups who seek recognition and acceptance from the populace and who make decisions that affect the citizens. One attribute of Pluralism is the fact that no single elite or groups of elites control decision making in governance.

The groups of people have powers that are limited in scope and regulated by competition with other groups. Moreso, these groups seek approval from the populace and that is why opinion polls, surveys, elections, etc., are carried out in order to ascertain which entities are more popular with the people.

4 0
3 years ago
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest wil
8090 [49]

Answer:

$16,667

Explanation:

Given that

Cash flows = $1,000

Growth rate = 6%

Interest rate = 12%

So by considering the above information, the amount would be

Amount = Cash flows ÷ (Interest rate - growth rate)

= $1,000 ÷ (12% - 6%)

= $16,667

We simply applied the above formula so that the amount could come by considering the given information

3 0
3 years ago
A corporation's legal capital:
Fantom [35]

Answer: d. Is established to protect the corporation's creditors.

Explanation:

A corporation's legal capital is the part of a company's equity that absolutely cannot be allowed to leave the company. It is illegal to distribute them as dividends or any other means.

The purpose of this is to ensure that the creditor's rights to assets in the company are protected in the event that some mishap should befall the company.

3 0
3 years ago
Read 2 more answers
Employees in the defense industry have greater job security and higher pay when the country is engaged in major military conflic
kiruha [24]

Answer: C the fallacy of composition.

Explanation:

The Fallacy of Composition is meant to explain the false logic that people apply when they believe that because something is true of a subsection of something, then that thing must be true for the whole thing.

For instance, my phone's batter is made of lithium so my entire phone must be made of lithium.

In this scenario, the logic is that it is good to be involved in military conflict because it favors the nation if it favors a subset (employees in defense) which is flawed because other industries might suffer. This however, represents the fallacy of composition.

7 0
3 years ago
Depreciation is A) the sum of gross and net investment. B) new additions to a firm's stock of intangible capital. C) the decline
weeeeeb [17]

Answer:

The correct answer is C. the decline in the economic value of an asset over time

Explanation:

Depreciation : Depreciation is a decreasing value of the asset due to tear and wear, obsolesce, usage, etc

It is charged on the fixed assets which include plant and machinery, furniture and fixtures, building, computer, equipment, etc.

The sum of gross and net investment is not called the depreciation because gross investment is an expenditure which is incurred on new purchase while net investment is a difference between gross investment and deprecation. So, option B is incorrect.

Depreciation should not be charged on intangible assets because in intangible asset, the amortization is charged. Thus, option B is incorrect.

The decrease in the general price level is disinflation or inflation decreased. So, option D is also wrong

Hence, The correct answer is C. the decline in the economic value of an asset over time

4 0
3 years ago
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