Answer: the ability to produce a good at a lower opportunity cost than other producers
Explanation: In other to clearly understand or grasp the definition or meaning of comparative advantage, the term opportunity cost should be understood. Opportunity cost simply means the benefit which one forfeits or losses when one chooses a certain option over the other. Comparative advantage is possessed by a certain seller or economy who is capable of selling his goods at a lower opportunity cost than its competitors. Thus, the comparative advantages weighs the size or amount of benefit forfeited or lost by sellers as a result of selling at a lower price. Thus the lower the opportunity cost, the better the comparative advantage.
Answer: $230,400
Explanation:
The Retained earnings account is mainly used to record how much the company retains from its past and present net incomes after paying out dividends to shareholders.
Ending Balance = Beginning balance + Net income - dividends
= 294,000 + (-27,600) - 36,000
= $230,400
Answer: Ethics
Explanation:
Ethics is the term which refers to the moral principle or the philosophy concept that helps in analyzing the give situation correctly and also helps in making the right decision.]
The ethics plays an important role in an organization as it helps in maintaining the discipline environment, culture and the various types of social norms.
According to the given question, the ethics is one of the moral principle that helps in interpreting the given situation in more appropriate manner and this is known as ethics. Therefore, Ethics is the correct answer.
Answer: See explanation
Explanation:
Supply of money simply means the money available at a particular time period for an economy.
In the above scenario, the loan of $2000 will lead to an increase in the supply of money available in the economy by $2000.
It should be noted that the deposit made by Smith in the value of $500 does not bring about in the change of the money supply. This is because tye. $500 is still considered to be part of the money supply that is available in the economy.
<u>Answer:</u>
<u>Creating an Insurance fund</u>
<u>Explanation:</u>
An Insurance fund could a very good financial strategy to mitigate risk exposure.
For example, XYZ company is an bank that has over 500, 000 customer base throughout the country. XYZ company has forseen possible financial loses resulting from theft and economic downturn in the future. A safe practice would be to allocate a portion of it's profit– either quarterly or annual profit to an Insurance fund which would mitigate the company from possible financial risks resulting from theft or economic vices.
This financial strategy has proven to be successful in real life in mitigating a company from exposure to risk.
