Answer:
False
Explanation:
The statement is false: because
As provided the doctors are identical and even there parents cannot differentiate properly and are mistaken sometimes.
As the doctors practice across the hall, that is the same place, any customer if there is an increase in fee of Doctor 1 will substitute his doctor, into another, as both are common with knowledge, and practice.
This will lead to fall of customers or patients at a change of fees, to another doctor.
Thus the price elasticity of demand is infinite, as all customers might be loosed.
Therefore, the statement is false.
In the context of business management, the purpose of budgeting includes the following three aspects:
•A forecast of income and expenditure (and thereby profitability)
•A tool for decision making
•A means to monitor business performance
The risk management principle involved in this is decision making.
<u>Explanation:</u>
The processes and the activities that we perform have some risks involved in them. The intensity of risk might differ from one task to the other task. So the risk involved in these tasks and the activities must be managed properly so that the target can be achieved properly.
These are some principles involved in the management of the risk. The principle involved in the task given in the question is that of making a decision which serves the purpose best and helps you to achieve your target. The decision made to cross the river via the bridge is taken after keeping into mind a lot of factors and the decision taken should minimize the risks. Thus it is the principle of the decision making.
Answer:
The amount of dividend paid by Heaton: $
Retained profit as at 31/12/2019 555,000
Add: Net income for the year <u>172,500</u>
727,500
Less: Retained earnings as at 31/12/2020 <u>425,000</u>
Dividend paid in 2020 <u>302,500</u>
The amount of dividend paid in 2020 is $302,500, which is close to $382,442.
The correct answer is A
Explanation:
The dividend paid in 2020 equals the retained earnings at the end of 2019 plus the net income for the year minus the retained earnings at the end of 2020.
Answer:
9.6%
Explanation:
The ROE is 12 %
The payout ratio is 20%
The first step is to calculate tnr retention ratio
= 1-(20/100)
= 1-0.2
= 0.8
The sustainable growth can be calculated as follows
= 12×0.8
= 9.6
Hence the sustainable growth rate is 9.6%
