Answer:
The demand for sweaters was unexpectedly low.
Explanation:
If the inventories are rising for sweaters then we know that demand for sweaters must be falling. This is because prices are fixed, so this implies that people are buying less of the good due to a decrease in demand. In most circumstances, this accumulation of inventories suggests that the demand for sweaters was unexpectedly low since companies try to smooth out production to minimize costs.
Answer:
Tenancy in common
Explanation:
This tenant could use a legal agreement known as Tenancy in common. This agreement is established between two people who are co-tenants of a residence, but while one person is interested in purchasing insurance to protect themselves from potential liability, the other tenant is not willing to purchase insurance. In this case, Tenancy in common, allows only one of the tenants to have support with the right of survivorship and in case that tenant dies, the right will not pass to the other tenant.
Answer:
161 units
Explanation:
Economic order quantity = √[(2 x annual demand x orderign cost) / annual holding cost per unit]
annual demand = 500 units
ordering cost = $1,000
holding cost = $550 x 7% = $38.50
EOQ = √[(2 x 500 x $1,000) / $38.50] = 161.16 units ≈ 161 units
Answer:
Omar's plan of retaining earnings can work depending on the liquidity preference of the shareholders.
If the shareholders have interest in short-term liquidity benefit (i.e. dividend), then his plans might be frustrated and vice versa.
The ability to meet short-term obligations and efficiently generate revenues is called Liquidity.
Liquidity is the ease or speed with which money can be raised to meet short-term financial responsibilities such as paying bills. Stocks and bonds, as well as other easily tradable assets, are regarded as liquid assets.
A company's liquidity can be determined by how well it can meet its short-term obligations, particularly those that are due in less than a year. What the business owes in comparison to what it owns is typically represented as a ratio or percentage. You can gain insight into the company's financial situation by using these metrics.
The liquidity status of a business is primarily affected by two factors. The first factor is its capacity to transform assets into cash to cover its present liabilities (short-term liquidity). Its debt-carrying capability is the second.
To learn more about Liquidity refer to:
brainly.com/question/13646882
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