Answer and Explanation:
1. Firms in the real estate industry have high leverage because they are capital intensive businesses, requiring higher capital for their operations and do not make profit or reach breakeven early. Therefore they are more inclined to leveraging than the share market .There is also the benefit of tax savings from debt sources
2. Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries have low leverage because they can reach breakeven or make profit early and so can rely on share market as against real estate industry.
Answer: Cash flow problem
Explanation: In simple words, cash flow problem refers to a situation when an entity faces difficulty in controlling the outflow in relation to their inflow. This can occur mainly due to two factors- low profit or losses and over investment.
In the given case, the company is facing the problem of over investment as they are not getting any inflow but have to bear the outflow for effectively operating their business.
Hence from the above we can conclude that the correct option is B.
Answer:
$43
Explanation:
Data given in the question
Sale value of Jill fresh pies = $20
Resale value of each pies = $9
Number of pies for reselling = 3
And, the remaining pies sale value = $16
By considering the above information, the amount added to GDP is
= Resale value of each pies × Number of pies for reselling + the remaining pies sale value
= $9 × 3 + $16
= $27 + $16
= $43
Answer:
The correct answer is: relative scarcity.
Explanation:
Relative scarcity refers to the basic economic problem that our wants are unlimited while our resources -<em>land, labor, capital, and entrepreneurship</em>- are limited. As there is an imbalance between our wants and our resources, individuals must compare one good over the other to analyze what is the advantage of acquiring one over the other. The solution is a trade-off.
