All categories

3 years ago

What kind of economy uses a free-enterprise system?

Business

1 answer:

alekssr [168]3 years ago

5 0

Answer:

The U.S. economy is a free enterprise system.

Explanation:

That means that individuals — and not the government — own most of our country's resources.

You might be interested in

Which one is the biggest part of your budget fixed or variable cost

VLD [36.1K]

It depends but variable costs are usually associated with unit production like ingredients or materials so fixed costs like capital expenditure might be the larger part of a budget

3 0

3 years ago

Diwali Airlines has a contract that gives them the opportunity to purchase up to 10,000,.000 jet fuel at $2.00 per gallon. The c

Ad libitum [116K]

Answer:

Option (D) is correct.

Explanation:

Diwali Airlines has a contract,

Given that,

There is an opportunity to purchase jet fuel upto = 10,000,000 gallons

Price = $2 per gallon

Current market price of jet fuel = $2.26 per gallon

The value of this opportunity:

= Jet fuel needed × (Current market price - $2)

= 6,000,000 gallons × $0.26

= $1,560,000

8 0

3 years ago

The two viking spacecraft did not find convincing evidence of life on mars, nor did the phoenix lander. do these results imply t

belka [17]

They don't. Water was found and there are actually implications that if it doesn't exist nowadays, it might have historically existed long before there was even life on earth. There are theories that there was life on Mars millions of years ago way before earth had life.

5 0

3 years ago

"A customer contributed $20,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $3

Aleonysh [2.5K]

Answer: C. $15,000 of the distribution is taxable and $5,000 is not taxable

Explanation:

The options to the question are:

A The entire $20,000 distribution is not taxable

B $5,000 of the distribution is taxable and $15,000 is not taxable

C $15,000 of the distribution is taxable and $5,000 is not taxable

D The entire $20,000 distribution is taxable

It should be noted that variable annuity contributions are typically not tax-deductible. Since the customer contributed $20,000 to a variable annuity contract and the account value has grown over the years and the NAV is now $35,000; when the customer takes a lump-sum distribution of $20,000. From the $20,000, $15,000 of the distribution is taxable and $5,000 is not taxable.

5 0

3 years ago

Firm A has 11 equally risky capital budgeting projects, each costing $29.608 million and each having an expected rate of return

Vanyuwa [196]

Answer:

How much capital should Firm A raise and invest?

$296.08 million should be raised and invested in projects.

Explanation:

WACC = 8% when A's retained earnings breakeven point = $296.08 million

Expected rate of return = 8.25%

WACC is less than expected rate of return.

Therefore, WACC is less than expected rate of return, which is beneficial, since cost of capital is less than expected rate of return.

therefore, $296.08 million should be raised.

If the firm A raises, more than $296.08 million, WACC would be increasing to 8.5%, this is greater than the expected rate of return i.e. 8.25%.

Hence raising amount more than $296.08 million will not be beneficial.

Hence it is clear that amount which should be raised and invested =$296.08 million.

Investment required in one project=$29.608 million.

Number of projects which can be started =$296.08/$29.608 =10 projects

All are equally risky therefore it does not matter which project should be left.

Hence, $296.08 million should be raised and invested in projects.

5 0

3 years ago