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3 years ago

In a market economy, decisions about which goods are produced are based

Business

2 answers:

gayaneshka [121]3 years ago

8 0

Answer: what the local community has made for generations

notsponge [240]3 years ago

5 0

Answer:

A what businesses believe will generate the most profits.

Explanation:

In a market economy, the private sector controls the majority of the factors of production. The government or central authority does not interfere with economic activities in this type of economy. The private sector decides on the production and distribution of goods and services.

The private sector participates in economic activities to make profits. Demand and supply forces determine the type and quantities of goods to be produced. Traders will avail to the markets the goods and services that consumers are willing to buy.

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Creative Sound Systems sold investments, land, and its own common stock for $31.0 million, $15.1 million, and $40.2 million, res

KatRina [158]

Answer:

Creative Sound Systems

Net cash flows from investing activities:

Cash inflow from sale of investments $31 million

Cash inflow from sale of land $15.1 million

Cash outflow from purchase of equipment ($25.1 million)

<u>Cash outflow from purchase of patent ($12.1 million)</u>

Net cash flows provided by investing activities $8.9 million

Creative Sound Systems

Net cash flows from financing activities:

Cash inflow from issuing common stocks $40.2 million

<u>Cash outflow from purchase treasury stock ($21.1 million)</u>

Net cash flows provided by financing activities $19.1 million

6 0

3 years ago

Englewood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this

Alchen [17]

Answer:

1) Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from the sale of the smoke detectors for each year over the next 12 years.

year net cash flow

0 -$140,000

1 ($20 x 4,000) - $70,000 - $127,500 + $7,500 = -$110,000

2 ($20 x 7,000) - $70,000 - $127,500 + $7,500 = -$50,000

3 ($20 x 10,000) - $50,000 - $127,500 + $7,500 = $30,000

4 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

5 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

6 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

7 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

8 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

9 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

10 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

11 ($20 x 12,000) - $40,000 - $127,500 + $7,500 = $80,000

12 ($20 x 12,000) - $40,000 - $127,500 + $7,500 + $40,000 +

$10,000 = $130,000

2) Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment.

using a financial calculator, the NPV = -$56,801.13

3) Would you recommend that Englewood Company accept the smoke detector as a new product?

Since the NPV is negative, the project should be rejected.

8 0

3 years ago

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

jeyben [28]

Answer:

The term used to describe the reduction of the balance owed on a loan with each payment made over a period of time is:

d. amortization.

Explanation:

Amortization of a loan is the gradual reduction of the balance owed on a loan because payments are being made over a period of time. Each payment is, therefore, a reduction of the borrowed fund. This gradual reduction through periodic payments is called amortization of the borrowed fund. Loan amortization, therefore, implies the spreading out of the loan payments over time. It is not the same as asset amortization, which is a kind of depreciation.

8 0

3 years ago

Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reser

Alinara [238K]

Answer:

price-taking assumption.

free entry assumption.

Explanation:

A perfectly competitive market is one in which different firms compete for consumers of their products. The characteristics of the perfectly competitive market are:

- products are nearly identical

- all the firms are price takers. That is they are not able to determine price independently

- buyer knowledge of information about products is perfect and available to all

- free entry and exit to the market

- resources are perfectly mobile

In the given scenario above two of these rules are not obeyed.

Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world.

So they determine the price ( they are not price takers)

Also since they own nearly all the aluminium reserves there is no free entry for new firms

5 0

3 years ago

Suppose Acme Industries correctly estimates its WACC at a given point in time and then uses that same cost of capital to evaluat

slamgirl [31]

Answer:

the firm will become more reasky as their Weighted-average cost-of-capital will change over time based on market condition but the management wil take project based on obsolete information

Thus, the WACC of the company will increase without the management notice this because, lender will use higher rate to make up for the change of failling Also, the shares wil trade at a lower value as is not maximizing the value of the firm.

Explanation:

4 0

3 years ago