Answer:
d) result in overproduction or underproduction of a good.
Explanation:
Market failure occurs when market forces fails to allocate goods and services efficiently.
The government usually intervenes to correct market failure.
Externalities usually lead to market failure.
Positive externality is when the benefits of economic activities to third parties exceeds its cost. Research and development usually yield postive externality.
Goods that yield postive externality are usually underproduced. Government can intervene by giving subsidies and grants which encourages production.
A negative externality is when the cost of economic activities to third parties exceeds the benefit. Pollution is an example of negative externality. Goods that yield negative externality are usually overproduced. Government can intervene by taxing companies producing negative externality. This would increase the cost of production and discourage production.
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Answer:
The answer is B.
Explanation:
Accounts receivable turnover is the number of times per period(quarterly, semiannuallly or yearly) that a business
or firm collectss its average accounts receivable. The ratio is used to evaluate the firm's ability to efficiently sell on credit and collect money from its customers in a timely manner.
A lower number of turnover depicts higher efficiency.
Therefore, the correct answer is B. It measures how frequent, on average, receivables are received and collected during the period
Jose, the sales manager, is working on the problem of increasing sales by using the rational model of decision making. In the first step he identified the problem of his employees needing more training. In the second step he thought of alternative solutions; and in step three he evaluated alternatives and selected a solution. In the fourth step, Jose needs to <u>implement and evaluate the training program </u><span><u>chosen.</u></span>
Answer:
Enterprise value = $20.988 million
Explanation:
We calculate the FCFF first using the given information.
FCFF from EBIT = EBIT * ( 1 - Tax rate) + Depreciation - Working Capital increase - Capital expenditure
Thus, the FCFF for Victoria Enterprises is:
- FCFF = 1.3 million * (1 - 0.35) + 0.309 million - 0.053 million - 0.309 million
Using the FCFF we calculate the firm value using constant growth model as,
Value = 0.792 * ( 1 + 0.06) / 0.10 - 0.06 = $20.988 million