Answer:
capital balance of Saturn: 65,000
Explanation:
Saturn participation in the net income:
1:3 >> 1 / 4 = 25%
capital balance of Saturn 60,000
net income : 20,000 x 25% =<u> 5,000 </u>
capital balance of 65,000
We simply add up the percentage of participation in the win/losses to Saturn capital account
Answer:
Based on Adam Smith LAISSEZ FAIRE approach , EFFICIENCY argument .
Explanation:
- The Laissez Faire ("Let it be") Approach proposed by 'Father of Economics' - 'Adam Smith' stated that : free & state unintervened market mechanism guided by <em>Invisible Hand</em> is socio economicaly best efficient. This is because Individual <em>Self Interest </em>will form base of wealthier & better society .
As per his this approach , government intervention is not only unecessary , but distortionary .
- Empirical EFFICIENCY argument specially applies to <em>Developing Countries</em>. Developing countries have had adopted protectionist (inward looking) policies based on contradictory Infant Industry argument - suggesting developing countries products inability to compete with developed countries markets.
However , protection for a long time was likely to make such economies incompetitive , inefficient and hence Free unintervented markets have been percieved to be best solutions to make them efficient .
Eg : India had adopted state regulated model in 1950-1990 , but structurally transformed in 1991 through New Economic Policy - Liberalisation , Privatisation , Globalisation. This turning point of Indian Economy makes evident the importance of free exchange markets
Answer:
The concept of economic profit ....... <u>alternative</u> two options.
If economic profit is positive .......... <u>Current </u>option.
If economic profit is negative............ <u>Other </u> option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two<u> alternative</u> options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose<u> Current </u>option, as it will make <u>Better off </u>, having more benefit than other option
Negative Economic Profit implies - one should choose <u>Other </u> option, as it wil make better off, having more benefit than the former considered option.
Answer:
Because the labour is a source of my daily food which potentially is a basic need in life
Answer:
The correct answer is letter "B": The agent has different incentives than does the principal.
Explanation:
Incentive conflicts more often called principal-agent problems arise when a <em>principal </em>(stakeholder) hires an <em>agent </em>(manager) to handle businesses on behalf of the principal but the principal's interest is different from the agent's purpose.
Agents are paid for following the principal's instructions but in most cases, when it comes to decision-making, the point of view of the agent differs from the position of the principal. The principal's point of view is typically self-biased.