Answer:
c. There is an "opportunity cost" associated with using reinvested earnings, hence they are not "free."
Explanation:
When the reinvested earnings are invested that is basically the earnings associated with reinvestment would earn the same like that earned by the investment if not withdrawn and invested.
Let us say for example: Amount invested = $1,000
Return on such investment = $100
Now if such earnings are also reinvested then
Earnings = $110
Now if this $110 is used rather than investing again, then there is the opportunity cost of earning $11 on such reinvestment.
Thus, statement c is correct.
Here are the answers: Ceteris Paribus, we would expect the following to be the cause of a decrease in the demand for the automobiles and these are: Increased gasoline prices, the expectations of the consumers that the prices of the automobiles will depreciate the following year and that the significant recession will develop and will last for a year. (Answers are based from the actual options attached to this question.)
For entrepreneurs, the closer the solution relates to the actual problem the customer is experiencing, the more likely that there will be immediate sales upon completion of product development.
<h3>Reason for early sales</h3>
When a particular products meet the demand of people, there is possiblity of sales immediately after the product is release.
Hence, product should be targeted towards demand.
Therefore, For entrepreneurs, the closer the solution relates to the actual problem the customer is experiencing, the more likely that there will be immediate sales upon completion of product development.
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