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3 years ago

Limitations of managerial economics

1 answer:

7 0

Managerial economics usually deals with the application of theories ,concepts and tools to solve the real life business problems. There are some drawbacks of this managerial economics too. Sometimes the business problems becomes very unique that the theories and methodologies becomes unable to solve the problem.

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Greater Grocers, an international retailer, opens a store in a town predominantly populated by a particular racial group. While

Lisa [10]

Answer:

Greater Grocers' actions during the selection process may be violating the Civil Rights Act of 1991

Explanation:

Based on the scenario being described it can be said that In the context of the legal standards of selection, one accurate statement would be that the Greater Grocers' actions during the selection process may be violating the Civil Rights Act of 1991. This is mainly due to the fact that customer preference is not a justifiable reason for them to undertake discriminatory practices.

7 0

3 years ago

Read 2 more answers

Three ways that savings can be transferred through the financial markets include all of the following EXCEPT Group of answer cho

Nikolay [14]

Answer: indirect transfer using the venture capital firm.

Explanation:

The capital market works to transfer funds from those who have it (savers) to those who need it (borrowers).

There are three ways this happens:

Direct transfer - Savers transfer the money to those who need it directly without the need for any intermediary. For instance, your uncle loaning you money to start a car wash.
Indirectly through Investment bank - Investment banks take the money savers deposit with them and invest in people and businesses to create a return for the savers.
Indirectly through financial intermediary - Intermediaries like Mutual funds, Commercial banks etc, get money from savers and invest in opportunities.

Indirect transfer using Venture capital firm is not one of these ways as it falls under Indirectly through financial intermediary.

3 0

3 years ago

For an institutional investor to qualify as a "QIB" under Rule 144A, the institution must have at least: A $1,000,000 of assets

True [87]

Answer:

C) $100,000,000 of assets that it invests on a discretionary basis

Explanation:

For an institutional investor to qualify as Qualified Institutional Buyer (QIB) under Rule 144A of the Securities and Exchange Commission (SEC) it must:

manage at least $100 million worth of securities
the securities must come from issuers that are not affiliated with the institutional investor

In case of banks or savings and loans institutions, Rule 144A requires them to have a net worth of at least $25 million.

6 0

4 years ago

Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufactu

borishaifa [10]

Answer:

a.$210,000

b. $158,000

c. $53,000

Explanation:

Calculation to determine the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company.

A)Calculation to determine the March manufacturing margin

Using this formula

Manufacturing Margin =(Sales – Cost of Goods Sold)

Let plug in the formula

Manufacturing Margin=450,000 – 240,000

Manufacturing Margin= $210,000

(B)Calculation to determine contribution margin,

Using this formula

Contribution Margin =(Gross Manufacturing Margin – Variable Expenses)

Let plug in the formula

Contribution Margin=210,000 – 52,000

Contribution Margin= 158,000

(C)Calculation to determine the March income from operations for Philadelphia Company

Using this formula

Income from Operations= (Sales – All expenses)

Let plug in the formula

Income from Operations= 450,000 – 397,000

Income from Operations = 53,000

Therefore the March (a) manufacturing margin, (b) contribution margin, and (c) income from operations for Philadelphia Company are:

a.$210,000

b. $158,000

c. $53,000

3 0

3 years ago

A firm has current assets that could be sold for their book value of $22 million. The book value of its fixed assets is $60 mill

love history [14]

Answer:

the firm market to book ratio is 1.48

Explanation:

The computation of the market to book ratio is shown below:

The Market values is

= $22 million + $90 million - $50 million

= $ 62 million

And, the Book values is

= $22 million + $60 million - $40 million

= $42 million

Now the firm market to book ratio is

= $62 million ÷ $42 million

= 1.48

Hence, the firm market to book ratio is 1.48

6 0

3 years ago