1.It promotes good economy, and creates a good means of d provision of economic goodz.... 2.It ensures daht both private and public sectors take part in d production and distribution of goods and services..
Freedom of ownership is part of the government and the public sector business environment.
<u>Explanation:</u>
Freedom of ownership or a sharing vision offers a number of opportunities in the business environment. It allows the government to control the costs, generate the economies of scale and bargain costs down internally.
The freedom of ownership permits access to complex, specialized skills that can not be sourced locally. So this allows the government sector or the public sector environment to run the business successfully and to run it efficiently.
I found this data from Table 7.3
<span>
<span>
</span><span><span>
Labor
Input
Output
</span>
<span>
0 0
</span>
<span>
1 40
</span>
<span>
2 70
</span>
<span>
3 90
</span>
<span>
4 100
</span>
<span>
5 105
</span>
<span>
6 108
Labor Cost = Labor Input x 30
Output Sales = Output x 6
Revenue = Sales - Cost
</span></span></span><span>
<span>
</span><span><span>
Labor cost
Output Sales
</span>
<span>
0 0
</span>
<span>
30 240
</span>
<span>
60 420
</span>
<span>
90 540
</span>
<span>
120 600
</span>
<span>
150 630
</span>
<span>
180 648
</span></span></span><span>
<span>
</span><span><span>
Labor
Input Output Labor cost
Output Sales
<span> Revenue</span>
</span>
<span>
0 0 0 0 0
</span>
<span>
1 40 30 240 210
</span>
<span>
2 70 60 420 360
</span>
<span>
3 90 90 540 450
</span>
<span>
4 100 120 600 480
</span>
<span>
5 105 150 630 480
</span>
<span>
6 108 180 648 468
Labor Unit 4 and 5 both have a revenue of 480. It is the maximum revenue. I think the best option would be C. 4 UNITS.
Lesser cost to the company at a maximum revenue.
</span></span></span>
Answer:
E. The corporate valuation model discounts free cash flows by the required return on equity.