Answer:
central tendency distributional error
Explanation:
There are three types of distributional errors:
- severity.- when the person in charge of rating is too strict and rates the employees with a poor grade.
- leniency.- when the person in charge of rating is too lenient and rates the employees with a high grade.
- central tendency.- when the person in charge of rating does not want to assume responsibility and rates the employees with a middle grade, not bad, not good.
Answer:
Following are the factors in the economy that affects the cost of money:
- Inflation
- Required return of the investors on the additional risk
- Systematic risk in the economy
- Duration of lending
- Credit Spread
Explanation:
If the inflation rate increases then the required return would be compensation for inflation and required return.
The higher is the risk associated with the investment the higher would be the investor's required return.
According to the Capital Asset Pricing Model, the company compensates the investor for the systematic risk, not for the unsystematic risk that he faces because CAPM assumes that the investor has diversified portfolio of investment.
If the amount lend is for greater duration, then there is a risk that the borrower will default payments. There is another explanation which is that there is higher chances of loss of opportunity due to lending amount for greater duration.
Credit Spread is the measure of the risk that the company will be unable to pay interest on loan or principal amount or both. So as we know higher the risk associated with the investment, the higher is the Required return demanded by the investors.
Answer:
Gross profit per jet = Selling price - Production cost per jet
Gross profit per jet = $45 million - $40 million
Gross profit per jet = $5 million
Gross profit = $5 million x 20 jets
Gross profit = $100 million
Explanation:
Gross profit = Sales - Production cost. In this case, we need to calculate gross profit per unit and multiply the gross profit per unit by number of jets sold.
Answer:
The most suitable answers are,
A) The government promotes competition between businesses.
B) The government owns or partially owns some businesses.
Explanation:
In a mixed market economy, bother government and the private sector plays an important role in the economy. Moreover, government tends to regulate the economy and it's activities to ensure a smooth flow.
In addition, both state owned and privately owned corporations present as well.
Answer:
D
Explanation:
Because the higher the quality of materials the more efficient the product will be
