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3 years ago

Which key factors impact whether budding entrepreneurs around the world can start and own a business

Business

1 answer:

Leno4ka [110]3 years ago

7 0

Explanation:

There are several barriers to entry in a market that can hinder the creation of a new business, the ones that most impact new entrepreneurs are the financial, technical and structural barriers.

There is the configuration of a monopoly market where there is a single company that controls the market and resources, influencing prices and hindering new entrants.

There are also capital difficulties, where the cost of opening and maintaining a business makes it difficult for new entrepreneurs to enter the market in the long term in a competitive manner with larger companies, for example.

And there are also technical barriers, which can be understood as the lack of specific knowledge for a particular business operation.

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A ____________________________ is one economic mechanism by which government borrowing can crowd out private investment.

joja [24]

A higher interest rate is one economic mechanism by which government borrowing can crowd out private investment. This is further explained below.

<h3>What is the economic mechanism?</h3>

Generally, A mechanism is a mathematical representation of the organizations that govern and coordinate economic activity.

In conclusion, Increasing the interest rate is one of the ways in which the government may stifle private sector investment. This will be detailed in further detail in the following paragraphs.

Read more about the economic mechanism

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4 0

2 years ago

Borghia Pharmaceuticals has $1 million allocated for capital expenditures. a. Which of the following projects should the company

balu736 [363]

Answer:

Please refer below the answer in detail

Explanation:

With a limited budget, the firm will first pursue projects with the highest return, and the allocate the remaining capital to the project with the second highest return, and so on until all capital is fully allocated. Based on the information, Project 6 has the highest return, followed by 1 and 3. These three projects together will cost:

350,000 + 300,000 + 250,000 = $900,000

After those three projects, the firm will have $100,000 left. The best out of remaining project is 7, but it costs 400,000, which the firm cannot afford. The best affordable project is 4, which offers a return of 12.1%. Hence, the firm should spend the remaining 100,000 on project 4.

The budget limit constraints the firm to give up project 7, which offers a NPV of $48,000. The firm is forced to choose project 4, which has a NPV of $14,000.

Thus the lost in market value of the firm = 48,000 - 14,000 = $34,000.

4 0

3 years ago

Clicking the Format Painter once will allow you to apply the copied formatting repeatedly.

kicyunya [14]

The second answer is correct hope that helps

7 0

3 years ago

Mr. Ballard retired in 2018 at age 69 and made his first withdrawal of $35,000 from his traditional IRA. At year-end, the IRA ba

serg [7]

Answer:

Contributions amounting to $320,000 were non deductible.

<u>First year of withdrawal:</u>

Taxfree withdrawal % = Uncovered Investments / Current year value x 100

Taxfree withdrawal % = [$320,000 / ($441,000 + $35,000)] x 100

Taxfree withdrawal % = [$320 / $476,000] x 100

Taxfree withdrawal % = 67.23%

Amount of taxfree withdrawal = 67.23% x $35,000

Amount of taxfree withdrawal = $23,530.5

Taxable amount = Total Withdrawal - Tax free withdrawal

Taxable amount = $35,000 - $23,530.5

Taxable amount = $11,469.5

<u>Second year of withdrawal:</u>

Taxfree withdrawal % = [($320,000 - $23,530.5) / ($407,000 + $60,000)] x 100

Taxfree withdrawal % = [$296, 469.5 / $467,000] x 100

Taxfree withdrawal % = 63.48%

Amount of taxfree withdrawal = 63.48% x $60,000

Amount of taxfree withdrawal = $38,088

Taxable amount = $60,000 - $38,088

Taxable amount = $21,912

$35,000 would be included in taxable income in first year and $60,000 would be included in taxable income in second year.

8 0

4 years ago

The government spends $45 million on heart disease research and gains in reducing death from heart disease are significant. If t

Marta_Voda [28]

Answer:

They would cause relatively smaller reductions in death from heart disease.

Explanation:

Since in the question it is mentioned that the government incurred $45 million for research on the heart disease and gain that decreased the death occured from the heart disease. Now if the law of diminishing retuns hold, so the extra rise in expenditure on heart disease result in relatively small decline as it decreases the returns

Therefore the same is to be considered

6 0

3 years ago