Answer:
a. less than $350
Explanation:
Since Randall needs lots of practice to earn his share of the band’s profit, which will amount to $350.
Gretchen gets distracted by Randall’s trumpet playing but she needs to get her writing done to earn $570 for her current article.
If Randall owns the right to play his music and Gretchen needs to hire a lawyer to help her reach an agreement with Randall, then the price that Gretchen is willing to pay the lawyer will be less than $350
<u>The reason for the price being less than $350 is based on the simple logic that Gretchen could as well pay Randall his share of the band’s profit, which will amount to $350, for him to stop disturbing her while she writes, than to pay a lawyer that amount and still spend extra time engaging the lawyer.</u>
Answer:
The correct answer is option a.
Explanation:
According to the classical economists, in the money market the equilibrium is achieved by the intersection of demand for money and supply of money curves. The supply of money is constant. They believed that money was demanded to make transactions. The amount of money needed then would depend on the value of transactions. They believed that there is a direct relationship between money supply and price level.
The liquidity preference theory however stated that money is used for transactionary, precautionary and speculative motives. And the money supply is not directly related with the price level. Interest rate also effects the demand and supply of money.
Activity-based depreciation methods are more costly and difficult to use. Thus, the correct options are (a) ‘too costly to use’ and (b) ‘difficult to apply in practice’.
The activity-based depreciation methods link the costs of assets with their output/production levels over a period of time. Although activity-based depreciation methods are theoretically more efficient than time-based depreciation methods, still they are not widely used in practice it is because of their high cost and level of difficulty.
For example, for the assets like machineries where productivity can be measured by the units of production and amout of time of production. It is simple to measure the production time than to determine the units of production.
You can more about depreciation methods at
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Explanation:
a.)The Prime intention of investor owned corporations is to obtain the return on their investments. For an investor-owned business the financial goal is to maximize the profits and minimize the expense that maximizing the profit.
b.)Fundamental aim of most non-profit health care organizations is to improve the health care activities and spend all their profits on such movements. Their goal is not to make business.
c.)Yes there are substantial variations among the aims of investor-owned and non-profit organizations. For an investor-owned corporation the business goal is to increase the profits and reduce the expense that increases the profit. But the financial objectives of non-profit organizations is to spend more on its non-profit purpose.
d.)The agency problem is a dispute of interest natural in any relationship where one party is supposed to represent in another's best interests. In collabrative finance, the agency problem normally relates to a conflict of interest between a company's directors and the company's investors.
There are different kinds of questions. The question that involves a capital structure decision is How much debt should the firm incur to fund a project.
<h3>What is a good debt-to-equity ratio?</h3>
This is known to often varies from firm to firm, a debt-to-equity ratio of around 2 or 2.5 is said to be considered good.
This ratio helps us to known that for every dollar put into in the firm, about 66 cents arises from debt, while the rest 33 cents is from the company's equity.
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