Answer: These individuals must enter into a <u>limited partnership.</u>
When a partnership has at least one General Partner and one Limited Partner, the partnership is called a limited partnership.
The general partners bear all the risk of the partnership and are jointly and severally liable for the debts of the partnership.
The limited partner contributes funds, but in not involved in the management of the partnership.
As a result he is not personally liable for the debts of the partnership.
However, he is entitled to a dividend by virtue of his investment. The nature of this dividend is defined and the terms are spelled out clearly in the partnership agreement.
Capacity is constrained when demand exceeds supply and the flow rate is equal to process capacity. The capacity constraint<span> is a factor that prevents a business from achieving more output. </span><span>
If capacity is constrained, we should raise the staffing level to lower capacity.</span>
Answer:
Multiplier = 3.33
Explanation:
Investment / Spending Multiplier denotes increase in Income multiple times increase in causal Investment.
Multiplier = Change in Income / Change in Investment = 1 / 1 - MPC
<em>M</em> = ΔY/ΔI = 1/ (1-MPC)
At Equilibrium, Investment = Savings = 750. Change in Investment = 900 - 750 = 150. Change in Income = 500.
M = 500/150 = 3.33
3.33 = 1/(1-MPC)
MPC = 0.70
The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.
A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.
To find the amount of risk premium, we can calculate it use beta of the stock formula:
Beta of the stock = (expected return - risk-free rate) ÷ risk premium
Because we need the amount of risk premium, then it will be:
Risk premium = Beta of the stock/(expected return - risk-free rate)
Risk premium = 1.75/(15.7% - 3.3 percent)
Risk premium = 1.75/(0.157 - 0.033)
Risk premium = 1.75/0.124
Risk premium = 14.12
Thus, the market risk premium is 14.12.
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Answer:
a. When a woman with children and very low income earns an extra dollar, she receives less in TANF benefits. This feature of TANF will cause the labor supply of low-income women to be <u>LOWE</u>R. One of the most important characteristics of TANF is that as the beneficiary starts to earn money, they start losing benefits. The more money they earn, the less benefits they receive.
b. The EITC provides greater benefits as low-income workers earn more income (up to a point).
<u>True</u>
This feature of EITC will decrease the labor supply of low-income workers. <u>b. False</u>
Earned income tax credit (EITC) is a refundable tax credit aimed at low income workers (and low middle income workers) with children. The tax credit received by the beneficiaries of this program depend on their income levels and number of children. E.g. during 2020, the EITC for joint filers earning up to $52,493 and having 2 children is $5,828. This program increases the labor supply of low income workers, it doesn't decrease it. If you do not work, you do not receive EITC.
