I believe it is <span>b. profit
</span>
Answer:
c. fall from 20 to 10.
Explanation:
The formula for the money multiplier is 1/reserve ratio,this means that the lower the reserve ratio the higher the multiplier, the reason for this is when the reserve ratio is lower banks can loan out a higher proportion of money therefore more money is created thus the multiplier and reserve ratio have an inverse relationship.
when the reserve ratio is 5% the multiplier is 1/0.05=20
When the reserve ratio is changed to 10% the multiplier is 1/0.1= 10
So the multiplier changes from 20 to 10.
A decrease in a company stock value will make the company nervous even if the decrease is small due to these following scenarios.
1) They don't have a stockpile of cash.
2) It will become a problem for companies that relies on outside financing to fund their operations. Decrease in stock value will make their creditors wary in letting them borrow more money.
3) Many stock companies use stock options as part of their employee benefits. If the value decreases, then employees will not be encouraged to stay on with the company.
4) Continuous decrease in stock value will result to disgruntled stakeholders which may prompt dismissal of the CEO and his/her team and replacing them with more capable people..
Answer: Undercapitalization
Explanation:
Susan's cake decoration business suffered from Undercapitalization.
Undercapitalization occurs when a business is not properly funded to maintain it's running. Undercapitalization is mainly common in small scale businesses with little start up capital.
Undercapitalization can cause inability to pay for: workers wages, rent, transportation of business supplies.
Answer: Destination contract
Explanation: The contract is described as a destination contract. A destination contract is one in which the risk of loss is on the seller until completion of his delivery obligations under the destination contract. Should the goods be destroyed or damaged while in transit, the seller bears the risk of loss. However, the seller is no longer liable after the goods have been safely delivered at the buyer's destination. Common ways to spot a destination contract include: a) FOB (Free on Board): when delivery term in the contract states "F.O.B Colorado". b) Ex Ship c) No arrival, no sale...
The transactions in a destination contract is governed by the Uniform Commercial Code (UCC).
