Bonds are a form of a debt captial
Answer:
(D) George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100.
Explanation:
Transaction for the event
Dr. Equipment (Asset) 9800
Cr. George (Capital A/c) 6700
Cr. Ben (Capital A/c) 3100
So.
George, Capital will increase by $6,700 and Ben, Capital will increase by $3,100 on the basis of their contribution in the purchase of equipment. So option D is true based on this event.
If the money supply increases, then at the old value of money there is an excess supply of money that will result in an increase in spending. The entire amount of money in circulation in an economy at any given time is referred to as the money market.
<h3>What is money market?</h3>
The money market is defined as dealing in debt with a maturity of less than one year. Investors use it to make a modest profit.
While governments and corporations use it to keep their cash flow constant. Long-term debt and equity instruments are sold and bought on the capital market.
Thus, excess supply of money that will result in an increase in spending.
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An waste of money you can get better stuff
Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
