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Models used for analysis, evaluation and selection are useful to know the feasibility of a business project. With these tools, business people can quantify the measures they must achieve to gain the outcome profit. However, ethical business practices may affect the end decisions. This is because it only does not care about the money but the morals of what they are doing. In a way, this is a business limitation.
Answer:
- Low supply
- Scarcity
- Low economic growth
Explanation:
When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.
For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.
Answer:
Beta= 1.17
Explanation:
Giving the following information:
Shirley Paul's 2-stock portfolio has a total value of $100,000. $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42.
To calculate the Beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (37,500/100,000)*0.75 + (62,500/100,000)*1.42
Beta= 1.17
Answer:
C) consumption and output
Explanation:
A fiscal contraction refers to decreasing a government's deficit. A government has a deficit when it spends more than the revenue it gets from taxes. Therefore if the government wants to reduce its deficit, it will decrease public expenditure and/or increase taxes. Any of those actions will also lead to a decrease in public consumption and total economic output.