More recent work in the area of strategic management regarding assertions about being stuck in the middle:________

Which of the following best describes how consumers make financial decisions in a market economy? A. The media forces consumers

notka56 [123]

Answer:

B. They make choices based on their self-interests.

Explanation:

A market economy can be defined as the economy of a country where by the government has a minimal influence or intervention on how the market operates.

A market economy is regulated by the individuals that owns the businesses in that economy. These individuals have the ability to direct resources that they need from production to their firms and businesses.

A market economy is largely or greatly influenced and regulated by the rate of supply and demand. Consumers in a market economy have to sometimes paid a high price for the goods and services that they require. Consumers make financial decisions in a market economy by making their choices based on self interests.

A market economy is a very competitive economy because

a. the demand of goods and services by consumers have increased therefore this results in an increase in production of goods and services.

b. The producers tend to high innovative when producing this goods and services required by the consumers.

In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.

4 0

3 years ago

What are the factors of production required by jewellery shop to operate its business

Blababa [14]

Answer:

See explain

Explanation:

There are 4 factors of production, land labor entreprenuership and capital.

The land of the jewellery shop would be the actual land that the store is on itself. The labor of the shop would be any of the work that any employees are doing. The capital would be any goods or machinery that is used in the store like cash registers, or bulletproof glass to protect their belongings, or any tools that the store uses to help make their jewellery etc. The last and final factor entrepreneurship might be for example the owner of the store, who manages the other 3 factors to bring a profit to the store.

4 0

3 years ago

Newell Rubbermaid Inc. manufactures and markets a broad array of office products, tools and hardware, and home products under a

ValentinkaMS [17]

Income Taxes Using appropriate headings and subtotals prepare a multiple-step consolidated income statement.

An Income tax is a tax imposed on people or entities in admire of the income or profits earned by way of them. income tax generally is computed because the manufactured from a tax price instances the taxable earnings. Taxation fees can also vary by using the kind or characteristics of the taxpayer and the type of profits.

Consolidated Income statement

Particulars Amount

Net Sales $ 5,864. 6

Less: Expenses

Cost of Products sold = $ 3,6594.4

Gross Profit = $2,205.2

Less: Operating expenses

Selling general, and administrative expenses $ 1,515.3

Other expenses $ 432.7

Operating Income = $ 275

Less: Non-operating expenses

Interest and other non-operating expenses $ 104.7

Income before Taxes = 152.5

Less: Income Tax expense $ 17.9

Income after Taxes = $134.6

Less: Loss on sale of Discontinued Operations

(net of income taxes) $9.4

Net Income $ 125.2

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6 0

1 year ago

Country a has a temperate climate and can grow bananas in the spring. it produces 42,000 pounds of bananas per year per growing

german

Country A would have absolute advantage because it produces the most pounds of bananas per year per growing acre.

<h3>What is Absolute advantage?</h3>

This is defined as the ability to produce more than available competitors in the market.

Country A produces more pounds of bananas per year per growing acre which is why it has an absolute advantage over country B.

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8 0

2 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal

lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

6 0

3 years ago

More recent work in the area of strategic management regarding assertions about being stuck in the middle:_________.