Answer:
Fractional Reserves
Explanation:
Banks are required to hold money to lend out. If you deposit $100 into your account that is $100 for the bank to lend that money out to ones who need it.
Answer:
The correct answer is the option A: the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Explanation:
To begin with, the fact that a company faces the dilemma between continue with the current business lineup or change it in order to begin producing a new one by starting from zero then a lot of variables must be taken care of and considered, that is, that at the moment of making the final decision the managers must understand the opportunity costs that can affect the organization and moreover the benefits that the actual lineup makes. That is why, that at the time of sticking with the current business lineup it makes sense to continue with the current one when the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.
Answer:
A. Differentiation strategy.
Explanation:
In a market different firms try to maintain a competitive edge over others. This is achieved by using various strategies like: Differentiation strategy, Local strategy, Regional strategy, Cost-leadership strategy, Global strategy.
In the given scenario ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price.
This is a differentiation strategy where a firm tries to make their product different from.otgers in order to maintain a competitive advantage over others
Answer: Investment for Desmond and US foreign direct investment.
Explanation:
This is an investment for Desmond because he owns the store. He is therefore the equity shareholder and investor into the store.
It is also a U.S. Foreign Direct Investment (FDI) because FDI is what describes a situation where an entity from a country goes to another country and sets up a business there that they will own and operate. Desmond being a U.S. citizen is operating a store in another country so this is U.S. FDI.
Answer:
Firms will leave the market in the long run.
Explanation:
Firms will leave the market in the long run.
Generally, the new firms enters in the market because the incumbent firms makes super normal profit. So in the long run, the continuous entry of firms will make the profit zero. Thus, when there is zero profit in the long run then the firms will start leaving the market and the demand for remaining firms will start rising because when firms start leaving the market then supply falls.
