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3 years ago

Why is it relevant that finance tends to attract large amounts of money?

Business

1 answer:

djverab [1.8K]3 years ago

6 0

Explanation:

An organization to be successful in the long term and competitive in the market, needs financial capital to carry out its activities, for this they open the company's capital to investors, who are the capital holders willing to inject capital into the company and receive dividends business, thus becoming a partner of that company.

It is essential that companies attract investors willing to inject a large amount into the business, as this benefits both, since a company with larger amounts of assets will produce more, have its obligations up to date and remain better positioned in the market.

To attract investors to a company, it is necessary that the company has a good reputation in the market and there is a favorable negotiation process, where there is a demonstration of results and the opportunity that the investor will have to invest his money in an organization that will generate profits.

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John decides to leave college early and play professional sports. Which of the following economic principles does John use? i)

IgorLugansk [536]

Answer:

i) personal economic policies ii) marginal cost versus marginal benefit analysis

Explanation:

Marginal costs and benefits are an integral part of the economy as they help to calculate costs and benefits accurately at a particular production stage and usage stage.

An economic policy is an act that aims at influencing or controlling economic behavior.

At this stage John believes his decision will influence his economy positively and he sees more long-term benefits than costs for him if he plays professional sports rather than staying in college.

6 0

3 years ago

How does revenue affect profit (also called “net profit”)? How do expenses affect profit?

Ivanshal [37]

Answer:

See below

Explanation:

1. How revenue affects Profits

Revenue is income that a business receives selling its products or from the services it provides. Income from other sources such as win in lawsuits is also revenue.

A business with high revenue is more profitable than a company with low income. For a business to make profits, its revenues must exceed its total expenditure. Profit is total income minus expenses. After the breakeven, extra sales contribute to profits. The more the sales, the higher the profits. Low revenue makes low profits.

2. How do expenses affect profit?

Expenses are costs incurred by a business in its productions and sales processes. Service providers incur expenses as they provide services to customers.

Expenses have a direct impact on profits. High costs may result in losses. Profits are realized after deducting expenses from revenues.

If the expenses are high, then profits will be minimal. Low expenses will result in high profits.

3 0

3 years ago

(Exchange rate arbitrage) You own $10 comma 000. The dollar spot rate in Tokyo is 215.8906 yen/$. The yen rate in New York is

allochka39001 [22]

Answer:

Answer for the question:

(Exchange rate arbitrage) You own $10 comma 000. The dollar spot rate in Tokyo is 215.8906 yen/$. The yen rate in New York is given in the following table: LOADING.... Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain (loss) in dollars? Hint: Compare the Tokyo's direct quote with the New York's indirect quote. "Assuming no transaction costs, the rate between Tokyo and New York are out of line. Therefore, arbitrage profits are possible." Is the above statement true or false? True . (Select from the drop-down menu.) The yen is cheaper in Tokyo . (Select from the drop-down menu.) The amount of yen you could buy in Tokyo for $10 comma 000 is 2135839 yen. (Round to the nearest whole number.)

is given in the attachment.

Explanation:

Download pdf

3 0

3 years ago

Rey Pfeffer and Robert Sutton believed that evidence-based management is founded on the belief that facing the hard facts about

Oksana_A [137]

Answer: True

Explanation: According to Rey Pfeffer and Robert Sutton, they both advocated that companies can bolster performance and trump the competition through evidence-based management, an approach to decision making and action that is driven by hard facts rather than half-truths, too much ride on gut instinct or intuition, acting without questioning, beliefs, ideologies, and popular fashions of management practices

listed below are the financial and organizational impact on business and how to overcome barriers to evidence-based management in various organizations:

1. Work is fundamentally different than the rest of life

2. The best organizations have the best people

3. Financial incentives drive company performance

4. Strategy is destiny and great leaders are in control of their companies

6 0

3 years ago

Which of the following statements is(are) true:

Rudiy27

Answer:

Neither I nor II are correct

Explanation:

I. The nominal interest rate is also referred to as the APR or the stated rate.

This statement is not true because nominal interest rate is different from the annual percentage rate (APR).

A nominal interest rate is basically the interest rate is charged by banks or other financial institutions on a loan, and other expenses on the loan are not added to the interest when interest rate is being determined.

On the other hand, APR is nominal interest rate plus other expenses incurred in other to get the loan.

Therefore, nominal interest rate is usually lower than the APR. This makes them to be different.

II. You should use the nominal interest rate to compare two alternative investments/loans with different compounding periods.

This statement is not correct.

The interest rate is used to to compare two alternative investments/loans with different compounding periods is the effective interest rate.

The effective interest rate is the actual amount of interest rate that a lender or an investor earned on his loan, investment because of compounding that is done during a specific period of time. The effective annual interest rate is the interest rate that is employed to compare different investment products because, unlike other interest rate, compounded interest are estimated differently by it.

Therefore, Neither I nor II are correct.

I wish you the best.

5 0

4 years ago