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3 years ago

Which of the following statements about economic policy are FALSE?

Business

1 answer:

yaroslaw [1]3 years ago

6 0

Answer: Economic policy is used to ensure all businesses are following regulations

Explanation:

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A downhill ski area is experiencing a decline in the number of lift tickets sold, falling revenues, and inadequate profits. The

sukhopar [10]

Answer:

D. a 10 percent decrease in the average price of a lift ticket.

Explanation:

When Price elasticity is greater than 1, that suggests that the demand for that particular good or service is highly responsive to price or is price-sensitive . Furthermore, If price elasticity is greater than 1 then an increase in price will cause revenue to decrease.

Applying the above-stated principle to the given scenario, it has been stated that 'The estimated price elasticity of demand is 1.5.' implying that the demand for downhill ski is highly sensitive and responsive to changes in price.

Therefore, the only logical economic strategy to improve revenues will be to decrease price so that revenue can increase.

5 0

3 years ago

Western Electric has 31,500 shares of common stock outstanding at a price per share of $78 and a rate of return of 13.05 percent

S_A_V [24]

Answer:

WACC = 11.13%

Explanation:

total market value common stocks = 31,500 x $78 = $2,457,000

total market value of preferred stock = 7,250 x $94.50 = $685,125

total market value of debt = $401,000 x 1.105 = $443,105

total = $3,575,230

Rcs = 13.05%

Rps = $7.70 / $94.50 = 8.15%

Rd = 8.05%

WACC = ($2,457,000/$3,575,230 x 13.05%) + ($685,125/$3,575,230 x 8.15%) + ($443,105/$3,575,230 x 8.05% x 60%) = 8.968% + 1.562% + 0.6% = 11.13%

8 0

3 years ago

It has been a great year at Capital Funding, Inc., an SEC-registered broker-dealer that is also registered in 22 states. The com

sergey [27]

Answer:

Option D would be the appropriate alternative.

Explanation:

A broker dealer would be a company or organization engaged throughout the purchase as well as the sale of securities within its multiple occasions or even on behalf of the participants.
Brokerage serves as an intermediary whenever it implements order information on behalf of the shareholders while acting mostly as a dealer or superintendent whenever it exchanges on one's consideration.

Other choices available aren't connected to that same scenario in the statement. So the answer here is just the perfect one.

3 0

2 years ago

The shareholder-debtholder conflict refers to:________

Lera25 [3.4K]

Answer:

Explanation:

The shareholder-debtholder conflict usually arises because shareholders would prefer the firm to engage in more risky business activities. This is because this has the potential to increase the income of the firm and as a result, the wealth of shareholders.

On the other hand debtholders would not want the firm to engage in risky activities because it might negatively affect the firm's ability to make its schedules payments to debtholders.

In order to protect themselves, debtholders usually draft a deb covenant which contains allowable activities of the firm

4 0

3 years ago

A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually

Shalnov [3]

Answer:

1) True

2) D. Total fixed costs

Explanation:

1) The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0

3 years ago