Answer: short selling
Explanation: In simple words, short selling refers to the process in which an individual borrows stock from its holder with the promise of giving it back after a specific time and at a specific price, after borrowing he or she sells the stock at the current market price and expects that the price of stock will decrease in future.
The borrower then purchases the stock at a lower price and gives it back to the lender with the margin profit in his or her pocket. Short selling works like a speculation but only market experts do such activity due to high risk involved.
Such processes are of high value to the market as they result in creation of liquidity.
Answer:
d. Project X
Explanation:
For Project X
Year Net cash outflow Net cash inflow Balance
0 -$77,000 -$77,000
1 $28,000 -$49,000
2 $28,000 -$21,000
3 $28,000 $7,000
4 0 $7,000
Payback period = 2 + $21,000 ÷ $28,000
= 2 + 0.75
= 2.75 years
For Project Y
Year Net cash outflow Net cash inflow Balance
0 -$55,000 -$55,000
1 $2,000 -$53,000
2 $25,000 -$28000
3 $25,000 -$3,000
4 $20,000 $17,000
Payback period = 3 +3,000 ÷ 20,000
= 3 + 0.15
= 3.15 years
Project X has a lesser than 3 year payback period. So, the correct option is D
Answer:
<u>3. divided by contribution margin per unit. (sales target net income</u><u>)</u>
<u>Explanation</u>:
In calculating the sales level in units needed to achive a certain net target income, this formula is applied:
Fixed cost + Targeted Income/Contribution margin per unit
<u>Fixed cost:</u> are all the cost that remains constant or unchanged for a longer period of time such as cost of rent, interest payments etc.
<u>Contribution margin per unit: </u>this refers to the difference between the selling price per unit and the variable cost per unit. This portion of the sales revenue covers (contributes to) the fixed costs.
Answer: Sustainable marketing
Explanation: In simple words, sustainable marketing refers to the process in which an organisation markets its product in such a way that demands of the current consumers could be satisfied to an appropriate extent and the future generations too get their fair share of the product.
Firms doing such marketing focuses on making their image of an environment friendly organisation and wants to attract customers on the basis of their sustainable view towards growth.
In the given case, company is using Eco-friendly processes in their production and is also adverting their product by sending a message of being Eco- friendly. Hence we can conclude that the company is involved in sustainable marketing.
Answer:
the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.
Explanation:
Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.
Generally, it has been proven beyond reasonable doubt that pollution is undesirable to living organisms such as humans, plants and animals in an environment.
Furthermore, we know and agree that social welfare of the people living across the world is increased by reducing pollution.
Hence, the optimal level of pollution in a society is the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.
