the SEC purpose is protecting investors from dangerous or illegal financial practices or fraud, by requiring full and accurate financial disclosure by companies offering stocks, bonds, mutual funds, and other securities to the public.
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Answer:
I) meet interest and principal payments, which if not met can put the company into financial distress
Explanation:
Among the given options the first option is correct with respect to pressure on the firm as if the payment of debt is not given so the chances of liquidation of the firm are high that comes under the bankruptcy
So while taking the debt we need to pay the interest and principal payments so that the chances of the liquidation would be less
hence, the first option is correct
Answer:
The correct answer is (C)
Explanation:
A decision-making process is a vital factor which can contribute towards a successful business. Likewise, some people rely on their institution and gut feeling to make a decision rather than to see the market demand and supply. This type of decision is known as a non-rational decision. Mary-Catherine is making a decision solely based on her Gut feelings which is why it is a not rational decision-making process.
Answer:
(D) marginal cost, the average variable cost, and the average total cost will shift up.
Explanation:
Given the nature of business of AI's Donuts, flour prices is part of the variable cost of the business as it will change will any change in the output of the firm.
An increase in flour prices, a variable cost, will have the following effect on the following costs.
- Average variable cost will increase since flour is a variable cost.
- Average total cost will increase since average total cost = average variable cost + average fixed cost.
- Marginal cost will increase since marginal cost = (change in total cost)/(change in quantity). Marginal cost will thus increase since total cost will increase.
- Average fixed cost will however remain unchanged since only variable cost will increase.
Therefore, option (D) is correct as marginal cost, the average variable cost, and the average total cost will shift up.
Google- a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.