A company that accepts responsibility for a problem and does all that society expects to solve that problem is using: an accommodative strategy.
<h3>What is a Reactive Strategy?</h3>
This refers to the type of strategy that a person uses to respond to issues when they happen.
Hence, we can see that a tobacco company taking a reactive stance to the claims that smoking causes cancer would: 4. place a warning label on cigarette packages about the dangers of smoking.
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The price should you be willing to pay for this stock is $24.86
<h3>Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?</h3>
A) $12.50.
B) $24.86.
C) $43.48.
D) $57.50.
Solution:
The price that will be paid for this stock can be calculated as follows:
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Thus, the price that will be paid for the stock is $24.86
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Answer: B
The government cannot control interest rates and that is the reason is why the government cannot completely control the business cycle. This is so because interest rate controls the rate of consumer spending, borrowing and spending. Say interest is low, people will borrow more and spend more and this will have an impact in the rate of employment. Hence, in short if the government cannot control interest rate, everything depending on it, the economic cycle cannot be determined.
Answer:
Commercial Bank > Offers checking accounts
Financial service company > Offers high-risk loans
Savings and loan association > Provides home mortgages
Credit union > Is owned by its members
Explanation:
1. Commercial Bank > Offers checking accounts
Commercial bank is a financial organization which accepts deposits, offers varieties of products including checking accounts, and provides loans to the public and enterprises.
2. Financial service company > Offers high-risk loans
When a company looks to develop economic growth through the use of money supply from the savings accounts of people, and offers risky loans, that company is said to be a financial service company.
3. Savings and loan association > Provides home mortgages
When an institution acts like a bank by not being a banking institution, and provides mortgages, it is coined as savings and loan association.
4. Credit union > Is owned by its members
Member-based financially operated organizations which helps people to provide financial services like non-risky loans and deposits, that is termed as credit union.
Answer:
8 years
Explanation:
Given: Cost of new machine= $500000.
Annual cash inflow= $100000.
Annual cash outflow= $37500.
First, we will calculate annual payback or cash inflow.
Annual payback= 
∴Annual payback= 
Now computing cash payback period.
Cash payback period= 
Cash payback period= 
∴ Cash payback period is 8 years.
When payback period is short then investment is more attractive.
