The term that refers to the cost that stimulates or inspires an economic decision is called INCENTIVE. Most of the type, incentives come in a form of payment or cash in the economic perspective. This gives an individual more reason to strive harder to become better in every action or task he performs.
Answer:
c. $87,000
Explanation:
The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:
= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount
= $60,000 + $12,000 + $20,000 - $5,000
= $87,000
Net operating income share is
= $40,000 × 30%
= $12,000
We simply applied the above formula
Answer:
The present value of growth opportunities is $23.08
Explanation:
EPS = dividend/payout ratio
= 5/50%
= 10
The present value of growth opportunities
= (Price with growth -EPS)/cost of capital
= (100 - 10)/0.13
= $23.08
Therefore, The present value of growth opportunities is $23.08
Answer: Cold joints
Explanation:
Continuous casting which involves the Continuous pouring of wet concrete into a mould is done to avoid the formation of Cold joints which can lead to cracks and weakness in the mould.
A cold joint is a defect in a concrete casting caused as a result of a delay in pouring wet concrete into a mould previously containing wet concrete. A cold joint is normally a point of weakness or crack in a concrete casting.
Answer:
A shortage will result whenever the: c. Government imposes a price ceiling below the equilibrium price.
Explanation:
A <em>shortage</em> happens when the supply of a product is not enough to satisfy its demand.
Remember that the <em>equilibrium price</em> means that there is no shortage or excess - the quantity supplied of a product is exactly the same as the demanded quantity.
Now, keeping this in mind:
<em>a.</em> The government imposes a price floor above the equilibrium price: This means that the product is too expensive, so there will not be enough demand for the supplied good.
<em>b.</em> The government imposes a price floor below the equilibrium price: The price floor is cheaper than the equilibrium price, and in that case a shortage would occur. However, the market can still reach its equilibrium point since the restriction is on the minimum price (and not the maximum). Goods can still be legally sold at their equilibrium price.
c. The government imposes a price ceiling below the equilibrium price: In this case, a shortage would happen, since the demand of the product would rise given that legally it's cheaper than its equilibrium price.
<em>d. </em>The quantity supplied exceeds the quantity demanded: This would be basically the same as case a.