Answer:
An elastic demand or elastic supply is one in which the elasticity is greater than one, indicating a high responsiveness to changes in price. An inelastic demand or inelastic supply is one in which elasticity is less than one, indicating low responsiveness to price changes
The best answer to the question is (B) services are intangible activities.
Unlike products, services are intangible activities, which makes it difficult for potential customers to know whether a service would be good or not before purchase. It’s very easy for customers to feel like they can’t tell the quality of service prior to transaction – which is a challenge that a service provider would face and needs to manage.
I guess the correct answer is 3%
During a recent hurricane, 25 individuals of the same butterfly species were blown onto a barrier island in southern Florida. During the first year, 80 caterpillars hatched from eggs laid by the butterflies and only 5 individuals in the population died.
The growth rate for the population during this period is 3%.
Answer:
I would issue stock because it is cheaper than borrowing.
Explanation:
First of all, issuing stock does not represent the obligation to pay interest over a long period of time, which can become very expensive if market conditions become adverse. Besides, if the company is small, it probably does not have the most advantageous financial conditions according to the banks, and the interest rate could be relatively high.
Besides, borrowing would mean increasing the liabilities in the financial statements, which could make the company less attractive for future investors.
Issuing stock does have the disadvantage of dilluting control of the company, because now stockholders own a piece of the company and could demand changes in management, and a different company strategy.