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GrogVix [38]
2 years ago
9

Finn is interested in taking over a small business, but he wants to pay a fair price for it, so he consults their income stateme

nts. How can he determine the company's overall profitability in each quarter of the previous year?
a. Calculate total revenue minus taxes paid.
b. Calculate operating revenue minus operating expenses.
c. Calculate total revenue minus operating expenses.
d. Calculate total revenue minus total expenses
Business
1 answer:
Diano4ka-milaya [45]2 years ago
4 0

Answer:

d. Calculate total revenue minus total expenses

Explanation:

Profit is Calculated as Total revenue minus Total expenses. Therefore, consider all Incomes generated by the Business whether Primary or Secondary. Also consider all Expenses incurred by the business including Non - Operating expenses.

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The importance of financial managers to firms with large cash inflows is greater than for firms with smaller cash flows. true fa
julsineya [31]
FALSE. It is not greater then firms with smaller cash flows.
6 0
3 years ago
According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual
Paha777 [63]

Answer:

A) True

Explanation:

The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.

Return earned by a portfolio is the weighted average return of the individual stock returns.

CAPM helps calculate expected return of an investor by the following formula:

Return = R_{f} \ + B(R_{m}\ -\ R_{f}  )

wherein, R_{f} = Risk free rate of return yielded by treasury bonds

              B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.

             R_{m}= Return which can be earned on market portfolio

Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.

6 0
3 years ago
Three individuals, Mary, Jack and Helen, make up the total demand for donuts per month in a particular market.
Paraphin [41]

The market demand curve would be 1000 - 0.125Q.

<h3>How to calculate the demand curve?</h3>

It should be noted that the market demand curve will be the sum of the individual demand curve.

The market demand curve will be calculated thus. Mary’s demand curve is 5P = 5000 – 1.25QM. Here, p = 1000 - 0.25QM

Jack’s demand curve for donuts is given by P = 1000 – 0.5QJ. Helen’s demand curve is given by QH = 2000 – 2P. This will be P = 1000 - 0.5QH.

The slope will be:

= 0.5 × 0.25

= 0.15

The demand function of Jack and Helen are the same. The demand curve will be 1000 - 0.125Q.

Learn more about demand on:

brainly.com/question/1245771

#SPJ1

5 0
2 years ago
Students will write a thorough explanation of the impact of price ceilings would have on the field of medicine in the United Sta
melisa1 [442]

Answer: Price ceilings are beneficial to society, and are often necessary, in that they make sure that essential goods are financially accessible to the average person, at least in the short run. By lowering costs, price ceilings also have the beneficial effect of helping to stimulate demand, which can contribute to the health of an economy.

However, there can also be downsides to price ceilings. While they stimulate demand, price ceilings can also cause shortages. Where the ceiling is set, there is more demand than at the equilibrium price. This means that the amount of the good or service supplied is less than the quantity demanded.

For example: in agriculture, medicine, and education, many governments set maximum prices to make the needed goods or services more affordable. Producers may respond to such an economic situation by rationing supplies, decreasing production levels or lowering the quality of production, making the consumer pay extra for otherwise free elements of the good (features, options, etc.), and more.

Request: Can I please get brainliest

8 0
2 years ago
Henry Spring, a chef at a major restaurant in San Francisco, wants to start his own restaurant. He surveys the market, finds a s
just olya [345]

Answer:

A)Capital

Explanation:

Cpatial is one of the factors of production. Capital includes all man made resocurces used in the production process. They include money, equipment and resocurces.

Other factors of production mentioned in the question are :

Henry- the entrepreneur

Building- land

I hope my answer helps you

7 0
2 years ago
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