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sergejj [24]
3 years ago
8

If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners

, we would call this event a(n) ___________.
Business
1 answer:
schepotkina [342]3 years ago
7 0

We would call this event a <u>leveraged buyout (LBO)</u>.

<u>Explanation:</u>

A leveraged buyout is the attempt of buying a company primarily through borrowing. This purchasing involves combination of both equity and debt. The funds borrowed are used to buy out the stockholders in the company. The employees, managers, or investors now become the owners of the firm. The firm is taken private, when the managers buy all of the stock of the firm and take it off the open market.

In the above scenario, the employees of San Simeon company purchases the firm from their current owners by borrowing large sum of money.

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The exit of existing firms from a competitive market will a. decrease market supply and increase market price. b. decrease marke
makvit [3.9K]

Answer:

The correct answer is option A.

Explanation:

The exit of existing firms from the market will reduce the overall market supply. This will cause the market supply curve to move to the left.

This leftward shift in the market supply curve will lead to an increase in the equilibrium price. The equilibrium quantity will be reduced.

The other firms in the market will get more market share and higher profits.

4 0
3 years ago
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic pric
LenKa [72]

Answer:

Export

True

False

True

Explanation:

Free trade is a form of trade policy where there are no restrictions to imports or exports of goods and services.

The price of meekers is $30 in Meekertown and $40 In the world. Because meeker's are cheaper in Meekertown, it means that Meekertown is efficient in the production of meekers. As a result, they would export meekers to the rest of the world. It would be cost efficient for the rest of the world to import from Meekertown.

Consumers in Meekertown are worse of because of the trade because the price of Meekers would rise.

Producers are better off because they would earn more profits from the sale of Meekers at the world price.

Free trade increases total surplus because of efficient production. If a country is inefficient in production, it would import . This would increase consumer surplus and if it is efficient in production, it would export increasing producer surplus.

I hope my answer helps you

7 0
3 years ago
Once an online catalog is in place, there are high costs in maintaining and accessing it.
Ket [755]

Answer:

False, once an online catalog is in place, there is little cost in maintaining it

5 0
2 years ago
The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is
eimsori [14]

Answer:

Bench-marking

Explanation:

Benchmarking is the process that works for comparing the products, services, etc by the other companies who are dealing with the same type of business that refers to the best in the industry or performing superior performance.

It could be done either by the cost, quality, time, quantity, etc

The aim of doing this process is to gain the competitive advantage so that they get to know their strength, weakness, opportunities, and threats

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3 years ago
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Answer:

Explanation:

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3 years ago
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