Venture most likely to attract a venture capitalist
C. A one-year-old e-commerce company
Explanation:
A venture capitalist is an investor who invests private equity and provides capital to the companies that exhibit higher potential of growth in the future or are projected to grow on the rate they are growing.
The venture capitalists usually fund a project in exchange for an equity stake in the business.
This could to a new started venture or pre existing businesses that need to expand to newer levels like the one year old e commerce company which is a booming industry.
Answer:
Industrial Analysis.
Explanation:
Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the profit potential of the industry. The research that Terry was doing is called <u>Industrial </u>analysis.
Industrial Analysis: It is an analysis or function conducted by the owner of business to understand the dynamics and workflow of any specific industry. It help to know the industrial environment to gain the competitve advantage and potential of the business in the industry. Later on the basis of Industrial analysis, SWOT analysis is conducted to know Strength, weakness, opportunity and threats of a company.
Answer:
Controllable margin =$125,000
Return on investment = 20%
Explanation:
<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>
Controllable margin - Sales revenue - variable cost - controllable fixed cost
Controllable margin= $500,000 - $300,000 - 75,000 = $125,000
Controllable margin =$125,000
Return on investment = (controllable margin/ Average investment) × 100
= (125,000/625,000) × 100 = 20%
Return on investment = 20%
Answer: Variable interest rate loan
Explanation:
Given, Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months.
That means the interest rate will change after 18 months.
The term that summarize the situations would be "variable interest rate loan"
- A variable interest rate loan is defined as a loan in which the interest rate charged on the current balance fluctuates over time as market interest rates changes.
- It mostly generate more interest.
Answer:
demand; inelastic
Explanation:
Price discrimination is when a seller charges different prices for the same product in different markets. Price discrimination is usually practised by monopolists. The aim of price discrimination is to eliminate consumer surplus.
A seller would usually charge a higher price to a consumer whose demand is price inelastic. This means that the quantity demanded is less sensitive to changes in price.
If the seller charges a higher price to a consumer whose demand is price elastic, the consumer would reduce the quantity demanded as a result of the rise in price and the total revenue of the seller would fall.
I hope my answer helps you
