Answer:
The affecting factors of the given context are defined below in the explanation section.
Explanation:
<u>Factors affecting fixed capital</u>:
- Capital expenditure of alternative investments is longer and therefore is considered fixed capital.
- That capital would be largely funded thru all the lengthy period financing sources, including certain equity, retained earnings, bonds, loan repayments, and so much more.
<u>Factors affecting working capital</u>:
- Costs of production, staffing costs, and operating costs also impact working capital.
- These fees are based on either the manufacturing techniques and equipment throughout the warehouse, this same competence of the employees, respectively.
Answer:
a. True
Explanation:
The sunk cost is the cost that is already incurred and not recovered in the future. Plus, it is also known as past cost.
This cost is not useless at the time of decision-taking so it would be ignored.
In the given question, the market value of the equipment is a sunk cost which determines that it will have no impact on the decision making so at the time of replacing the equipment, it would not be considered
Employment, produce preference, current and past loans, bankruptcy histroy and debt
Answer:
The Archer Daniels Midland Company is an enormous conglomerate that grows and produces many food products. It is sometimes called the "supermarket to the world." The company has given large donations to politicians. If these donations affect policies regarding the environment or agricultural price supports, then these financial gifts are an example of rent seeking.
Explanation:
Rent seeking can be defined as an attempt of increasing profits without the contribution of productivity. In the corporate world, it involves the use of financial donations and bribes to politicians so that the politicians can manipulate the policies in their favor. It usually involves unjust favor to a business that has an interest in government-funded social services and programs. This concept was made popular in 1974 and generally meant the accumulation of wealth through shrewd means.
This concept was idealized by Adam Smith who defined rent as one of the sources of income. He stipulated that there are three major sources of income, namely; rent, wages and profit. He defined profit as the creation of more capital by risking capital. Wages were earned income, usually from employment. Rent is the utilization of resources to earn interest. Entities that have resources can sell, rent or lease to earn interest. Rent is usually the least riskiest way of earning income, thus it gained popularity tom mean receiving more benefits as compared to the associated costs.
In our case, Archer Daniels Midland Company utilizes it's access to capital to offer large donations to politicians with the aim of using the donations to manipulate policies regarding the environment or agricultural price supports in their favor.
Answer:Because of his physical deformity, which prevents him from walking upright, the King nicknames him "Hop-Frog".
