All categories

4 years ago

Economic liberty supports the free enterprise because

Business

1 answer:

valentinak56 [21]4 years ago

6 0

Answer:

The answer is explained below

Explanation:

Economic liberty is the process in which individuals of a society make their own economic decisions. This involves freedom to produce, trade, invest or use any goods or services they desire. Economic liberty involves profiting from ones own ideas and creativity.

Economic liberty supports the free enterprise because people are given the ability regulate the prices of goods and services, import and export goods and own private properties without the intervention of the government.

You might be interested in

Which of the following types of financial aid do not require you to pay the money back?

lilavasa [31]

A grant is a sum of money given by the government of a country for a particular purpose and it does not require to be paid back

5 0

3 years ago

Read 2 more answers

In order to take advantage of the high quality talent pool, Ernst & Young sets up operations in the Philippines and moves pa

Dmitriy789 [7]

Answer:

c. Offshoring.

Explanation:

Offshoring is the process by which an organisation relocates some of its business processes to another country. This is done to take gain a competitive advantage or to reduce cost. Operations such as manufacturing and accounting can be moved to another country.

Ernst & Young sets up operations in the Philippines and moves part of its tax services to the new facility to take advantage of the high quality talent pool there.

5 0

3 years ago

Read 2 more answers

Sarah, a famous pianist, is told that she will have to undergo brain surgery that could result in partial paralysis of her right

erma4kov [3.2K]

Answer:

Yes, Sarah can revoke the gift to her friend.

Explanation:

Gift is the transfer of property from one person, usually the donor(giver) to another person, donee(receiver) without expecting any thing like compensation in return. Gift can be given or transfered to either an individual or organization.

A gift can be revoked by the donor in law. Such gift is called Causa Mortis Gift.

Causa Mortis Gift is a gift given or transfered in expectation of death of the donor. Where a donor gives out his/her gift during the course of undergoing major surgery, such could also be called Causa Mortis Gift. This type of gift can be revoked anytime before the donor's death or recovery from surgery or illness and cannot be revoked after his/her death.

3 0

3 years ago

Ginny is considering an investment costing $55,000 that has cash flows of $35,000 in Year 2, $36,000 in Year 3, and −$5,000 in Y

denis-greek [22]

Answer:

Cumulative cash flows in year 0 = -$55,000

Cumulative cash flows in year 1 = -$55,000

Cumulative cash flows in year 2 = -$55,000 + $35,000 = -$20,000

Cumulative cash flows in year 3 = -$55,000 + 35,000 + $36,000 = $16,000

So, Payback period of three years =2+20000/36000 = 2.5555556 years

Now, as the payback period is less than three years, we should make the investment

However, I do not agree with the decision as payback method does not consider time value of money and ignores all cash flows beyond payback period and hence in this case it is ignoring cash flows in year 4 which is an outflow

NPV=-55000+0/1.08^1+35000/1.08^2+36000/1.08^3-5000/1.08^4=-90.3298767 As NPV is negative, let do not make the investment.

7 0

3 years ago

The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma

alexira [117]

Answer:

Cost of equity = 14.74%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock..

Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.

Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM,

E(r)= Rf + β(Rm-Rf)

E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.

Using this model, we can work out the value of beta as follows:

β-1.2 Rf- 4.3%, Rm = 13%

E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74 %

Expected return = 14.74 %

Cost of equity = 14.74%

8 0

3 years ago