The definition of money supply which include only items which are directly and immediately usable as medium of exchange is M1. Money supply refers to the entire stock of currency and other liquid assets that are circulating in a particular economy at a particular period of time.
M1 include cash and checking deposits which are very liquid in nature and are suitable as medium of exchange.
<span>It depends on their agreement. It could be a general partnership or a limited partnership. One could be an investor and one runs the business day to day.</span>
Answer:
c. Argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.
Explanation:
The Pecking order theory states that a business should first of all seek for internal funds (retained earnings) as a first choice of capital.
When internal funds are depleted, it can now look to debt as a source of finance.
In turn when debt options have been exhausted the last resort is to look for funding from equity.
So the Pecking order argues that a firm's first choice for capital is retained earnings as there is no informational cost associated with using retained earnings.
Quality Control (QC) is a way to be sure that products or services are acceptable to customers.
Quality control is a process wherein companies review the quality of goods and services based on a set of quality standards.
The set quality standards are usually derived from information gathered from clients, customers, and authorized departments on what the quality of goods and services should be.
Products and services which passed quality control ensures that these are acceptable to customers.
Answer:
Most companies have the resident expertise to complete an initial public offering (IPO) or first public equity issue.
Explanation:
When businesses need funding of their operations and growth they often exchange equity for funding from the public. For example when the retained earnings of a firm is not sufficient for its growth plans it can look to public funding through sale of shares.
An initial public offering (IPO) is done when a company gives out part of its ownership (equity) to the public in order to get funding.
Since IPOs occur only once in the lifetime of a company, most companies do not have a resident expert to complete an initial public offering (IPO) or first public equity issue.
Rather they employ a stock broker to arrange the IPO for the company.
