In the context of business management, the purpose of budgeting includes the following three aspects:
•A forecast of income and expenditure (and thereby profitability)
•A tool for decision making
•A means to monitor business performance
This expanding panic and rising flood of withdrawals is called Bank Run.
<u>Explanation: </u>
Bank run means many customers of the bank withdraw their deposits due to the fear that the bank might become insolvent. When many customers withdraw their funds then the bank might not be able to meet the withdrawals with the available funds.
This further increases the risk of the bank to default when all the customers withdraw their deposits. This is because the banks hold only little amount as cash in hand while the rest of the bank's wealth is invested in long term assets.
Answer:
c. it makes prices rise
Explanation:
Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation.
Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power.
Low inflation indicates slow economic growth, low employment, and a reduction in prices.
Answer: "building footprint" .
_____________________________________
Choosing when to start a project is related to the investment timing decision.
<h3>Is an investment's timing crucial?</h3>
The following are some advantages of market timing strategy:
- Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
- When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>
The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.
<h3>What is a timing option for investments?</h3>
The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.
<h3>What is an example of an investment decision?</h3>
- Decisions on investments can be made for the long- or short-term.
- A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
- A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.
learn more about investment decision here
<u>brainly.com/question/24246300</u>
#SPJ4
