One common advantage of long term investment is higher return.
The longer you stay on an investment the bigger possibility to earn bigger interest and return. You might sometimes experiences losing but still you have the chance to get back what you loss over the time.
According to the <em>"Not Too Big Enough" </em>article, some of the <em>sources of </em><em>scale economies</em><em> in the banking and finance industry</em> are as follows:
1. Bigger banks can spread their investment (fixed) costs over more output, thereby <em>reducing the </em><em>cost per unit </em><em>and making it impossible for </em><em>smaller banks </em><em>to compete in the market</em>. Most often, the smaller banks cannot afford investments in modern banking computing power and systems management.
2. Bigger banks can <em>consolidate banking functions</em> with the <em>elimination of redundancies </em>after each merger and acquisition. The cost of redundancies also gives them economies of scale.
3. Bigger banks have access to <em>larger pools of </em>deposits and will not engage in borrowing at higher costs. Smaller banks cannot tow this line because of their small scale, lacking the required funding mix.
4. Finally, advertising works best where a bank has a large geographic spread. The cost of advertising over a large area is worth it, unlike when a small bank markets its services by advertising.
2. These economies of scale mean that Oligopolies are increasing on Wall Street, and there will be further consolidations of smaller banks. Of course, every small bank would like to engage in mergers and acquisitions to grab a share of the scale economies.
Thus, <em>as banks grow large</em>, they should be mindful that enjoying the scale economies comes with the risk of crumbling like the banks regarded as <em>"too big to fail" </em>when they build on a pack of cards.
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Answer:
The answer is A
Explanation:
A partnership is similar to a sole proprietorship, except the business has 2 or more owners. These owners are responsible for all aspects of the business and receive all the profits from the business. Legally, the owners ARE the business.
Answer:
The business must explicitly articulate values that emphasize ethical behavior.
Explanation:
Answer:
Worley Company
Units Completion % Equivalent Units
D. Mat CC
Beginning work in process 2,400 35% 2400 840
Transferred 10,800 10,800 10,800
Ending work in process <u>1,900 60% 1900 1140</u>
<u> Total 15100 15,100 12780</u>
Worley Company
Number of Equivalent Units of Production
Whole Units 15100
Direct Materials Equivalent Units 15,100
Conversion Equivalent Units 12780
Inventory in process, beginning= Direct Materials + Conversion Costs
= 2400 + 840 = 3240
Transferred to Packing Department= Direct Materials + Conversion Costs
= 10,400 + 10400
Inventory in process, ending = Direct Materials + Conversion Costs
= 1900 +1410= 3310
Total= Direct Materials + Conversion Costs= 15,100 + 12780= 27880