<span>1. Capital is the manufactured, artiFcial, or synthetic goods used in the production of other goods, including machinery, equipment, tools, buildings, and vehicles. Capital is the produced factor of production. This factor must be produced using other factors of production, which means that society is often faced with the choice between producing consumption goods that satisfy wants and needs and capital goods that are used for future production.
2. Industrial goods are made up of machinery, manufacturing plants and materials,and any other good or component used by other industries or Frms. Consumer goods are ready for the consumption and satisfaction of human wants,such as clothing or food</span>
The reliance on one commodity explains why they are classified as a peripheral economy.
<h3>What is a peripheral economy?</h3>
A peripheral economy is an economy that relies on either one commodity or a few commodities. As a result, these types of economies are extremely vulnerable to fluctuations in price and demand of that commodity.
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Answer: a. I, II and III are true
Explanation:
From the question, the statements that are true are:
I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required.
III. 2% is the expected inflation rate over the period.
4% is the desired real rate of interest because that's the rate at which the investor is willing to buy the goods in future.
2% is the expected inflation rate over the period because at that rate, there's expectation of future rise in price while 6% is the approximate nominal rate of interest required which is the addition of the 4% and the 2%.
Answer:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.
b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Explanation:
a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.
b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the annual earnings per share. For every company whose shares are traded on a stock market, there is a P/E ratio. For private companies (companies whose
shares are not traded on a stock market) a suitable P/E ratio can be selected and used to derive a valuation for the shares.
Equity Multiplier or P/E ratio=Market value per share/Earning per share.
Answer:
C. Management
Explanation:
The Management of an organisation is primarily responsible for preparing the financial statements for that organisations to be consumed by relevant parties including the shareholders, the government and the society at large.
It is the responsibility of the Auditor to ensure that the prepared financial statement shows a true and fair state of the business for the period presented.
A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is expected to be reported in the financial statement if it is likely to occur and can be reliably estimated.
Since Management is responsible for the preparation of the statement, then the inclusion of contingent liability is its responsibility.