Firms may often find that they have different divisions with differing degrees of risk. one way to adjust for this in capital budgeting is to any cash balances.
A firm is a commercial enterprise, usually set up as a partnership, that provides professional services such as legal and accounting services. Corporate theory assumes that companies exist to maximize profits.
In general, the definition of "company" in the field of economics is any business that seeks to make a profit by producing or selling products or services (or both) to consumers. For example, one of the most common uses of the term is "law firm", which typically provides legal-related services.
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When a society has a higher level of capital per person , it is called capital deepening .
Answer:
Partner Macki will eventually receive cash of $16,000
Explanation:
Macki has a $40,000 capital balance.
Income and losses ratio for Macki is 2
Total Income and losses ratio = 2 + 3 = 5
Calculating for Macki
Cash to be received by partner Macki
= $40,000 * 2/5
= $16,000
Answer:
the value of attending the class he decided to miss
Explanation:
Opportunity cost is defined as the forgone alternative an individual has missed as a result of taking an action.
In economics both the actual cost of an activity and the opportunity cost are considered when analysing economic activity.
In the given scenario Tim decided to skip class so he can get more rest. This is the actual activity chosen.
However the value of the class missed is the forgone alternative. So this is the opportunity cost