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g100num [7]
3 years ago
7

What role do businesses play in a free enterprise system?

Business
1 answer:
fenix001 [56]3 years ago
3 0

Answer:

C. They produce most available goods and services.

Explanation:

In A free market economy, the production of goods and services is done by the private sector. The government's participation in economic activities is limited. The private sector owns and controls the majority of the factors of production.  The private sector owns factories, manufacturing, and other businesses in the economy.

In the free market economy, profits are the primary motivating factors to engage in business. The private sector produces goods and services that will generate profits for the businesses.

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The regular expenses of doing business such as wages, rent, utilities, insurance, and advertising is also known as the
guajiro [1.7K]

Answer:

Operating expense

4 0
3 years ago
The U.S. government bought 112,000 acres of land in southeastern Colorado in 1968 for $17,500,000. The cost of using this land t
sweet-ann [11.9K]

Answer: c. Is equal to the market value of the land

Explanation:

When deciding the cost of using an asset such as land for something, the best cost to use is the opportunity cost of the land. What would the US Government be doing with the land if they were not turning it for use for the black-tailed prairie doga.

As there are no other alternatives, this cost will therefore be the market value of the land because this is the amount that the Government could get for the land if they sold it instead of using it for the black-tailed prairie doga.

6 0
3 years ago
What does a wholesaling company do?
nikdorinn [45]

Answer:

B. Sell products to companies that plan to resell them

Explanation:

like costco

3 0
3 years ago
Read 2 more answers
Occasionally it is said that issuing convertible bonds is better than issuing stock when the firm's shares are undervalued. Supp
Debora [2.8K]

Answer:

Generally convertible bonds are cheaper than normal corporate bonds since the warrants that allow bondholders to convert them to stocks carry a price. If the stock price is undervalued, so will the warrants. This means that yes, the company will also lose money if they issue convertible bonds.

But what is really important here is what action results in the lowest loss. Issuing common stock will probably result in higher losses than issuing convertible bonds.

4 0
3 years ago
When the Federal Reserve sells government securities on the open market, what effect does this action have on the nation's
lukranit [14]

Answer:

Money Supply - Decreases / Interest Rates - Increase

Explanation:

Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.

Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.

4 0
4 years ago
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