A sole proprietorship has the single owner of the business and the main goal of the owner is to increase the value of his capital invested in the business which is also called as Equity.
The objective of maximization include the maximization of net income given the current resources of the firm
A proprietorship has only one owner so there is no need to decrease long-term debt to reduce the risk to the owner.
The proprietor wants to earn more income and he will have to pay more taxes so the goal is not to minimize the tax impact on the proprietor.
Similarly, the goal is also not to minimize the reliance on fixed costs.
Hence the correct answer is:
Maximize the market value of the equity
Answer:
Current price = $20.50
Explanation:
Data provided in the question;
Growth rate, g = 20% = 0.2 for the 2 years
Growth rate, g' = 15% = 0.15 for the following 2 years
after 4 years annual dividend = $3
Last dividend paid, D0 = $1
Required rate of return, r = 12% = 0.12
Now,
D1 = D0 × (1 + g)
= $1 × (1 + 0.2)
= $1.2
D2 = $1 × (1 + 0.2)²
D3 = $1 × (1 + 0.2)² × (1 + 0.15)
D4 = $1 × (1 + 0.2)² × (1 + 0.15)²
D5 = 3
Therefore,
Current price = 
+ 
+ 
+ 
+ 
⇒ Current price = $20.50
Answer:
Some business incubators are started by developing countries.
Explanation:
A business incubator is a company that provides management training or office space services towards assistance to the development of new and startup companies. According to NBIA, business incubators tend to work as a catalyst tool for economic development either at regional or national level.
Developing countries refer to countries having an industrial base that is less developed along with HDI relativity with other nations.
Answer:
The correct answer is letter "B": The firm be able to charge the low-value customers a lower price than the higher-value customers.
Explanation:
Price discrimination is the practice by which producers charge different prices to different consumers based on factors such as<em> age, income or location</em> to mention a few. This differentiation in prices is always justified by producers with one of those factors otherwise the approach would be considered illegal.
Direct price discrimination<em> is carried out when the firm charges lower prices to an unfavored sector of the market keeping the regular price in sectors where income is higher.</em>
<span>They will be lowest when a single company produces all of the output in an industry. This will be because the one company is doing all the production and does not have to compete with any other companies trying to enter the marketplace. The lack of new companies will allow the monopolizing company to set their own prices for costs of production.</span>
