Answer:
Explanation:
There are many obstacles that such a company may face when pursuing such an endeavor. One of which is establishing the site, knowing how to properly manage and communicate with potential buyers. Another would be language barriers, as an e-commerce site you become available to a much wider audience and not all of which speak the language that you speak. Therefore, figuring out how to properly communicate and help these individual's is key. Another big obstacle would competition, by getting into e-commerce you are also entering a market that is full of already established competitors that will do everything to outperform you.
The major reason for making this type of ownership change is liability protection. A sole proprietor is personally responsible for all the debts his company generates, he can lose everything he has if he generate a big debt. In corporations, there is corporate liability shield which protects the owners of the company from loosing their personal assets as a result of business liability.
It would be $125,000 + $10,000=$135,000 the insurance company would need to pay
When two or more organizations combine to become one, it is referred to as a merger.
What are the 3 types of mergers?
Vertical, horizontal, and conglomerate mergers are the three basic forms of mergers.
- Horizontal Merger- Companies at the same stage in the same industry unite in a horizontal merger to cut costs, increase product options, or lessen competition.
- Vertical Merger- In a vertical merger, a business acquires another business in the same sector that is frequently active at an earlier or later point in the manufacturing or sales process.
- Conglomerate Mergers -To lower risk, conglomerates consolidate firms that are unconnected to one another.
Learn more about Mergers: brainly.com/question/16557059
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Answer:
The correct answer is: A
Explanation:
The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. The velocity of money is important for measuring the rate at which money in circulation is being used for purchasing goods and services.
Economies that exhibit a higher velocity of money relative to others tend to be more developed. The velocity of money is also known to fluctuate with business cycles.
Velocity of money formula:
Velocity of Money = GDP / Money Supply
According to the<em> </em><em>quantity theory of mone</em><em>y</em>, inflation occurs because there is too much money available to buy the same amount of goods and services produced in the economy. It relates the general price level, the total goods and services produced in a given period, the total money supply and the speed (velocity) at which money circulates in the economy in the following equation:
MV = PQ
M stands for money.
V stands for the velocity of money (or the rate at which people spend money).
P stands for the general price level.
Q stands for the quantity of goods and services produced.
If for some reason the money velocity declines rapidly, it can offset the increase in money supply and even lead to deflation instead of inflation.
When more transactions are being made throughout the economy, velocity increases and the economy is likely to expand. <u>The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.</u>
