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nadezda [96]
3 years ago
5

Which of the following serves as an incentive for entrepreneurs in a market economy?

Business
1 answer:
hram777 [196]3 years ago
7 0

Answer:

<em>Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.</em>

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Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of
Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0
3 years ago
Maymart Inc sells its products at the lowest prices in the industry, and it believes that this is the best way to stay ahead of
Y_Kistochka [10]

Answer:

A) The cost leadership strategy

Explanation:

Cost leadership is providing the service or supply of product without compromising the quality of service or product supplied.

In the given instance also, Maymart supplies goods without any decrease in quality standards that is goods are completely acceptable by customers, and that the goods are supplied at least price in the industry, this provides a competitive advantage to the company, by cost leadership.

As cost is least for consumer for same quality as demanded.

7 0
3 years ago
What do I watch after the 500 episodes of naruto shippuden because I couldn’t see the whole wedding and after naruto shippuden i
IgorC [24]

Answer: I don’t think there’s anything else, maybe That’s why a lot of people don’t like baruto because it’s kinda unfinished.

Explanation:

8 0
3 years ago
Read 2 more answers
Xavier, 16, invites a group of his high school friends to swim in a neighbor's pool late at night while that neighbor is away. T
aliina [53]

Answer:A - His prefrontal cortex is underdeveloped.

Explanation: For Xavier to be able to make such a decision as to invite his friends to swim in his neighbors pool while we was out at night shows that his prefrontal cortex is underdeveloped.

Prefrontal cortex is the frontal part of the frontal lobe in the brain. This part of the brain is responsible for some of our behaviours like decision making, social behaviour moderator and personality expressions.

This is to say that Xavier's behaviour was controlled by his prefrontal cortex that is still developing.

8 0
3 years ago
Z best, inc. issued $1,000,000 of common stock for cash. by accident, z best recorded the transaction by increasing cash and dec
kodGreya [7K]

As a result of Z best recording the transaction by increasing cash and decreasing stockholders' equity, the result would be The accounting equation is out of balance, SE is understated, contributed capital is understated,

<h3>What happens when stock is incorrectly recorded?</h3>

When Z Best issued common stock, they should have increased cash and increased stockholders equity.

Because they did not do that, they made the stockholders equity understated and the contributed capital as well. As a result of this, the accounting equation will not balance:

Assets = Equity + Liabilities

The accounting equation will not balance because assets will be more than the sum of equity and liabilities.

Find out more on the accounting equation at brainly.com/question/14236545

#SPJ1

5 0
2 years ago
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