Answer:
Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.
The goods which are more in demand and on which consumers can afford to spend more, are produced in larger quantity than those goods or services which have lower demand. The price of various factors of production including technology helps to decide production techniques or methods of production. Rational producer intends to use those factors or techniques which has relatively lower price in the market.
Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.
Explanation:
Answer:
<u>Letter B is correct</u>. Will be reduced.
Explanation:
In this case, Arthur's taxes will be reduced. This situation happens according to some legal criteria. Arthur is a sole proprietor of his business, and since he has had significant losses tied to his business, he has the right to reduce personal expenses on such losses by subtracting this cost from his tax obligations.
Answer:
Stockholders' equity at the end of the year was $110,000.
Explanation:
Beginning Balance of Stockholder's Equity = $40,000
Net Income for the year = $90,000
Dividend declared in the year = $20,000
Ending Balance of Stockholder's Equity = Beginning Balance of Stockholder's Equity + Net Income for the year -Dividend declared in the year
Ending Balance of Stockholder's Equity = $40,000 + $90,000 - $20,000
Ending Balance of Stockholder's Equity = $110,000
Answer:
A) Both the present value and future value would increase.
Explanation:
If the compounding frequency increases, then both the present value and the future value will increase because the effective annual rate will increase. E.g. interest used to be compounded every 6 months, now it is compounded monthly.
Both the present value and the future value vary jointly, if the present value decreases, then the future value will also decrease, and vice versa.
Answer: (A) Guaranty fund
Explanation:
According to the given question, the Guaranty fund is one of the type of fund that basically helps in paying the various types of unpaid claims.
This type of funds are basically covering the beneficiaries of the insurance organization in which the insurer are basically helps in selling the various types of products and the services in the market.
The guaranty funds is typically used by the administrator for the purpose of protecting the policyholder in the insurance firm.
Therefore, Option (A) is correct answer.
