I think it would be D-Reduce expences
Answer:
d. economic contraction
Explanation:
Contraction is in economics means it is business cycle phase where the overall economu should be fall. Also the contraction should arise when the cycle of the business is in peak but it should be prior to became as a trough
So at the time of economic contraction, the company normally took the measures of the cost cutting
So as per the given situation, the option d is correct
If a risk-averse small business owner can't reduce the level of risk to where they are comfortable, they can either insure against future losses or Spread the risk among other.
The correct option is A - Spread the risk among other people or businesses. This also termed as diversification and one of the most important techniques applied for mitigating the risk or reducing the negative effects of risk.
option B is not correct as ignoring regulatory changes will attract legal action and that is not an advisable method to mitigate risks.
Option C is also incorrect as choosing a source for capital investment will attract more risk and tie the funds for a longer duration and
option D is not a technique to avoid risk.
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Answer:
C. There has been an increase in the rate of inflation
Explanation:
We should make the difference between positive statements and normative statements.
positive economics tries to understand behavior without judgments
while normaives, are the evalation on the positive economics. It prescribes a course of action like "higher education should be free"
In this case, only statment C is a positive statement as it does not inccurs in any sugestions. It only describes a situation without judgments on the oucome.
Answer:
The amount of interest that ash should report as a supplemental disclosure of cash flow information is $ 30,000.
Explanation:
In income statement the amount of expenses are recorded keeping matching concept under consideration. However, in cashflow statement expenses that are paid in cash are shown as cash out flow.
Interest payment will be calculated as follow.
Opening balance $ 15,000
Interest expense $ 20,000
Closing Balance ($ 5,000)
Payment $ 30,000
The interest payment of $ 30,000 will be reported in cash flows statement.