Answer:
b. it is expensive and requires a great deal of effort.
Explanation:
selling on credit is basically lending money to customers and it can be very expensive for a small business. First of all, the risk of not getting paid always exists. Second, a small business doesn't generally have excess cash in order to finance credit sales. This means that you might probably need to borrow money yourself to finance your customers.
The good side of credit sales is that they might help you increase your total sales. But you have to calculate which is higher, the costs or the benefits.
Answer:
The answer is option A) Diversification merits strong consideration whenever a single-business Is faced with diminishing market opportunities and stagnating sales in its principal business company
Explanation:
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.
It's important to diversify among different asset classes. Different assets such as bonds and stocks will not react in the same way to adverse events. A combination of asset classes will reduce your portfolio's sensitivity to market swings. Generally, bond and equity markets move in opposite directions, so if your portfolio is diversified across both areas, unpleasant movements in one will be offset by positive results in another.
Strategic plans are usually put in place in order to increase efficiency and to reduce cost. In the scenario given above, Iris has discovered a loophole in the IT strategic plan, because he is aware that a technology that is meant to reduce cost is not going to do so. Because of this, it is right for Iris to speak up and make that fact known. If he refuses to do this, the goal of the strategic plan to reduce cost will be defeated.
Answer:
Cost of equity for new stock will be 12.8 %
So option (a) is correct option
Explanation:
We have given the common stock sells for $32.50
Earning per share = $3.50
Dividend pay out ratio = 60 %
So dividend will be = 3.50×0.6 = $2.1
Growth rate = 6 % = 0.06
Flotation rate = 5% = 0.05
We have to find the cost of new stock
We know that cost of equity from new stock will given by
Answer:
An unlimited life spam
Explanation:
If your firm has an existence independent, it will continue to exist indefinitely unless it is legally disbanded. Limited liability prevents you from being held personally liable for their company's obligations or legal judgements. Shareholders were protected from legal responsibilities and debts by corporate entities.
