Hmmmmmmmmm I have no idea this is a tough question
The correct definition for free cash flows to the firm is <u>D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure</u>.
<h3>What is free cash flow?</h3>
Free cash flow (FCF) is the cash a company has after all the cash outflows for its operations and capital assets maintenance.
This implies that free cash flow is the available cash that a company has after making payments for its operating expenses and capital expenditures (Capital Expenditure).
A. EBITDAX (1-Tax) + Depreciation - Changes in working capital + Capital Expenditure
B. EBITDAX (1-Tax) - Depreciation - Changes in working capital - Capital Expenditure
C. EBITX (1-Tax) - Depreciation - Changes in working capital + Capital Expenditure
D. EBITX (1-Tax) + Depreciation - Changes in working capital - Capital Expenditure
Thus, the correct definition for free cash flows to the firm is <u>Option D</u>.
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<u>Full question:</u>
Margie opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all the store's debts?
A. sole proprietorship
B. limited partnership
C. corporation
D. joint stock company
E. general partnership
<u>Answer:</u>
sole proprietorship type of business entity Margie own if she is personally liable for all the store's debts.
<u>Explanation:</u>
The sole proprietorship is not a lawful thing. It solely applies to a character who holds the firm and is individually answerable for its shares. They can operate subsequently the title of its master or it can run the company under a counterfeit name.
They are the most obvious design of business to build or practice alone, due to a lack of management law. As such, these kinds of businesses are extremely familiar among individual masters of companies, personal self-contractors, and counselors.
Here she is going to be owner and manager so she can choose sole proprietorship where no government formalities are there and she can be answerable to her is sufficient.
Answer: When the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending.
Explanation:
As the price level falls, the interest rate declines, and interest-rate-sensitive spending increases. It should be noted that a low interest rate will bring about a rise in the demand for investment.
Therefore, when there's a reduction in the price level, there'll be a reduction in interest rate as well which then leads to the rise in demand for investment and rise in aggregate demand.
When the price level increases, there will be a reduction in real balances while the businesses and the households will be poorer when compared to a scenario whereby there's a price fall.