Answer:
a. as to ownership b. as to the nature of business
Explanation:
Answer: 11.95%
Explanation:
Present value of the bond before you sold it;
FV = 1,000
N = 6
PMT = 100 = 10% * 1,000
Rate = 8%
Using excel to calculate, use the PV function;
Present value of bond = $1,092.46
Present value of bond after you sell it;
FV = 1,000
N = 5
PMT = 100 = 10% * 1,000
Rate = 7%
Present value = $1,123.01
The Annual total rate of return will be = ( New Price - Old price + Income) / Old price
= ( 1,123.01 - 1,092.46 + 100) / 1,092.46
= 11.95%
Answer: A nation with a market-based economic system
Explanation:
Market economies are generally considered the best places to do business because the competitive nature as well as minimal Government interference gives companies the opportunity to make profits if they are efficient enough.
A company that lacks basic democratic institutions will be shunned because the Government can impose unilateral decrees that could be harmful to business and people would be unable to go against them. The same goes for a nation where economic activity is regulated by the state.
And a nation where the rule of law does not take precedence over business could lead to unfair competition so the Market based economy is the best to do business in.
Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.
<h3>What is inflation?</h3>
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
- Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
- A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
- Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
- Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.
To learn more about Inflation refer to:
brainly.com/question/15692461
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Answer:
Competition
Explanation:
In the capitalistic economy, COMPETITION ensures that a firm will survive only if it serves its customers well by providing products and services that meet their needs.
Hence, Competition is a favorable concept for business because it stimulates the improvement and growth of new and decent commodities in the markets.
To consumers, competition is good because it normally leads to better service and lower the costs or prices of commodities.
