Answer:
The correct answer is: the costs.
Explanation:
Debt financing is money borrowed to be repaid over a period of time usually as forms of credits or loans from financial institutions such as banks. The benefit of debt financing is that an organization could turn a small amount of money into a large sum. The drawback is that the money borrowed requires payment with interest regardless the organization had revenues or not.
Equity capital is the financing method of a company through stocks. The funds must not be repaid but the organization gives part to its ownership to the investors who profit from dividends.
<em>The cost of equity is higher than the cost of debt</em> because equity financing is a greater risk to the investor since stockholders eventually can take over the ownership of a firm, something that does not happen with debt financing.
No!, the number of active products is not an indicator of innovation. Organizational creativity and innovation have proven to be a difficult concepts to weigh. Read below about the interplay between products and innovation.
<h3>What is the interplay between products and innovation?</h3>
There is no particular output that indicates organizational extents of innovation. To bossom, innovation and creativity must be fostered within the organization. Innovation and creativity must be defined as cultural values in order for the organization to see the gains.
Therefore, the correct answer is as given above.
learn more about organizational creativity: brainly.com/question/22421332
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Assuming the firm's expected sales are $264,000 in which the firm break-even sales are $197,000, the margin of safety in dollars is:$67,000.
<h3>Margin of safety in dollars</h3>
Using this formula
Margin of safety in dollars=Expected sales-Break-even sales
Where:
Expected sales=$264,000
Break-even sales=$197,000
Let plug in the formula
Margin of safety in dollars=$264,000-$197,000
Margin of safety in dollars=$67,000
Inconclusion the margin of safety in dollars is: $67,000.
Learn more about margin of safety in dollars here:brainly.com/question/15190495
Answer:
Opportunity cost
Explanation:
A country is said to have a comparative advantage in producing a good, if it has a lower opportunity cost of producing that good in comparison to the other country. For instance if the opportunity cost of producing Wheat in U.S is 2. While that in China is 1. It shows that China has a comparative advantage in producing wheat as compared to the U.S.
So a nation that has a comparative advantage in producing a good or service compared to the other nation can produce that good or service with a lower opportunity cost.
Efficiency, Profit and Resource cost are not directly related to comparative advantage. Although efficiency can contribute towards lower opportunity cost but it is not a scale used for international trade.
Thus, lower opportunity cost is the best alternative.