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2 years ago

Which of the following best describes the role of “capital?”

Business

1 answer:

prisoha [69]2 years ago

5 0

Answer:

Explanation:

Capital, in general term, can be defined as a sum of money used to start a firm or invest to earn more money. Talking in broader terms, capital is anything that adds value or profit to the owner of the firm.

A capital can be machinery, factory, patents, buildings, etc. Capital is a sum of money used to pay or invest in the making of products.

Therefore, the statement that best describes the role of capital is what goes into making a product. Thus option B is correct.

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In a make-or-buy decision, a. the company must choose between expanding or dropping a product line. b. the company must choose b

Travka [436]

Answer:

Correct option is (c)

Explanation:

Make-or-buy decision is a form of strategy to analyse if a product must be manufactured internally or sourced from outside suppliers.

Cost and benefits related to the product being produced internally or outsourced is studied and compared before arriving at a decision. If cost of producing and storing goods are less as compared to the cost incurred in outsourcing, then decision to make will be taken and vice-versa.

So, make-or-buy decision involves considering relevance of purchase price of goods sourced externally.

6 0

2 years ago

The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for th

Brilliant_brown [7]

Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100

7 0

2 years ago

The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasi

jok3333 [9.3K]

Answer:

The correct answer will be Option A (unlimited).

Explanation:

The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited.
Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.

Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.

3 0

2 years ago

Dee Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. She borrows$4,000from her bro

levacccp [35]

Answer:

A. The stock is purchased for $40 x 300 shares = $12,000.

Given that the amount borrowed from the broker is $4,000, Dee's margin is the initial purchase price net borrowing: $12,000 - $4,000 = $8,000.

B. If the share price falls to $30, then the value of the stock falls to $9,000. By the end of the year, the amount of the loan owed to the broker grows to:

Principal x (1 + Interest rate) = $4,000 x (1 + 0.08) = $4,320.

The value of the stock falls to: $30 x 300 shares = $9,000.

The remaining margin in the investor's account is:

Margin on long position = "Equity in account " /"Value of stock"

= "$9,000 － $4,320" /"$9,000" = 0.52 = 52%

Therefore, the investor will not receive a margin call.

C. Rate of return = "Ending equity in account － Initial equity in account" /"Initial equity in account"

= "$4,680 － $8,000" /"$8,000" = - 0.4150 = - 41.50%

7 0

3 years ago

Eric believes works hard he will meet management's goals and that if he meets management's goals, he will get a raise, which he

Elden [556K]

Answer:

Expectancy theory

Explanation:

Expectancy theory - is referred to as the approach in which individual work according to the defined goal. People are motivated to act in a certain way because they believe to have expected results from the way they have selected.

It also states that desirable outcomes of any behavior hold the motivation by other people

The three main components on which Expectancy theory work are:

- Expectancy

- Instrumentality

- valence

7 0

2 years ago