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How does price serve as a signal to resource owners?While consumers decide that a good or service is much more appealing than before, demand rises. This makes a shortage at the original equilibrium price, putting upward pressure on price. The higher price raises the amount of profit firms can earn, and provides them along with an incentive to produce more. So, resource prices are bid up to attract much more resources to the firms. The end result is a movement of resources into the industry.
The NPV decision rule needs that a company invest in all projects that have a positive net present value. This presumes that sufficient funds are available for all incremental proj
discuss the applicability of operating cycle to poultry business(consider broilers)
Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,
Q. Objective of the business? Working capital is needed for the following purposes For the purpose of the raw material, components and spares To pay the Wages and the sal
Which ratios would a potential long-term bond investor be most interested in? Explain. Potential and Current lenders of long-term funds, such as bondholders and banks, are con
Classification of source of finances
Why do you think the empirical studies as regards factors influencing equity returns mainly showed that domestic factors were more significant than international factors, and, seco
Explain how management goals are incorporated into pro forma financial statements. Management locates a target goal, and forecasters produce pro forma financial statements within
Explain how management goals are incorporated into pro forma financial statements. Management put a target goal and forecasters makes pro forma financial statements under the
How does the net present value relate to the value of the firm? The net present value is the dollar amount of the amend to the value of the firm if the project under considerat
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