Answer:
$500
Explanation:
An insurance deductible refers to a pre-defined amount of money that the policy holder must pay the insurance provider before they pay any expenses. Therefore after paying the $500 deductible the insurance provider in this scenario has agreed to cover all of the costs associated with this automobile accident. Thus Charlie's accident will only end up costing him $500.
Answer:
B. 500
Explanation:
Which of the following statements is true?
a. Monopolists are price makers. All other firms are price takers.
b. Unlike other industries, monopoly industries have high barriers to entry.
c. Only monopoly firms are granted patents and copyrights.
d. Unlike other firms, a monopolist's demand curve is the same as the market demand curve.
Answer:
The correct answer is option d.
Explanation:
A monopoly is a market structure where there is a single firm in the market with no close substitutes. The firm is a price maker. There is high barriers to entry in the market.
Similar to monopoly other imperfect competition such as monopolistic competition and oligopoly also have barriers to entry, and are price makers. But the firms in such markets have different demand curve than the market demand curve.
But in a monopoly there is only single firm, so the market demand curve is the same as individual firm's demand curve.
You are meeting with the new CEO of your company to discuss marketing channel strategies. You are delighted to learn that the CEO actually understands the importance of marketing channels in a firm's sales success. The CEO tells you that his primary concern is that the chosen marketing channel facilitates the firm's ability to make products available when customers want them, and in locations where they want them. He leaves it to you to decide on the appropriate marketing channel. Given his primary concern you should make sure the channel you choose is capable of creating lots of _______________.
Answer:
You should make sure the channel you choose is capable of creating lots of:
Time and place utilities.
Explanation:
Utility:
In business, utility is defined as the benefit or value that a customer gets from the product of a business.
There are fours type of utilities which are: Time Utility, Form Utility, Place Utility and Possession Utility.Time Utility: This utility means that your product remain available to the customer at a time when the customer need it. Like if a customer wants the product available at night then it should be available.Place Utility: This utility means that the your product is available to the customer wherever the product is required. For example if a customer wants your product at a specific place then it should be available.In this questions, time and place utility were required from the manager.A client was treated with methotrexate for cancer during the 6th month of her pregnancy. Which teratogenic effect may be seen in the child?
Answer:
Influenza
Explanation:
Influenza normally known as "this season's cold virus", is an irresistible infection brought about by a flu infection. Indications can be mellow to extreme.
The most widely recognized side effects include: high fever, runny nose, sore throat, muscle and joint torment, cerebral pain, hacking, and feeling tired.
This season's cold virus is brought about by flu infections that contaminate the nose, throat, and lungs. These infections spread when individuals with influenza hack, sniffle or talk, sending beads with the infection into the air and conceivably into the mouths or noses of individuals who are close by.
Exposure to methotrexate during pregnancy can cause teratogenic effects, including limb abnormalities in the child.
Explanation:Exposure to methotrexate during pregnancy can have teratogenic effects on the developing fetus. Methotrexate is a cytotoxic drug commonly used for cancer treatment, but it can cause a range of birth defects if taken during pregnancy. One teratogenic effect that may be seen in the child is limb abnormalities, similar to what was seen in babies born to mothers who took thalidomide during pregnancy. This can manifest as missing or shortened limbs, a condition known as phocomelia.
Monica, a new student at Valley High School, becomes friends with a group of teenagers who use marijuana and remain seated during the singing of the National Anthem. Although Monica had never used marijuana and used to sing the Anthem, she begins to engage in the same behavior as her new friends. This is an example of
A. differential association.B. conformity.C. labeling.D. both conformity and labeling.
Answer:
C. labeling
Explanation:
Labeling theories of crime are often referred to as social reaction theories, because they focus primarily on the consequences of responses or reactions to crime. These responses or reactions typically focus on three sets of actors:
1) informal social others, such as the friends, parents, or partners of persons committing crimes, and who disapprove of the offender’s behavior.
2) organizations or institutions such as the criminal justice system, whose function it is to “do something about” crime.
3) those who perceive a threat by some behavior and want to see legislation passed to outlaw it. All of these very diverse actions have one thing in common: they are all reactions to crime.
As such, they are said to be “labels” because they have the quality of attaching a name or a signature to someone or some behavior.
The correct answer is A) differential association.
This is an example of differential association.
Sociologist Edwin Southerland studied the way people were influenced by another group of people and came up with the term differential association, that is the way one individual receives the influence of other individuals due to the permanent interaction with them. They share and influence their way of thinking, values, ideas, behavior, and criteria.
A $10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity of
A) 8 percent.
B) 10 percent.
C) 12 percent.
D) 14 percent.
Answer:
A) 8 percent.
Explanation:
Coupon rate refers to the expected periodic earnings of a bond until its maturity. The coupon rate is expressed as a percentage of the par value or the face value of the bond. It is similar to the interest rate for other investments option. A bond's coupon rate is, therefore, its interest rate.
A bond coupon rate represents its yearly earnings. However, most bonds will pay the interest twice per year. The bond issuer pays the bondholder regular and fixed interest until the bond matures. The coupon rate determines the bond's profitability. A bond with a higher coupon rate is more attractive to investors.
An employer is obligated to verify the _____ of employees who are hired to work
Answer:
identity
Explanation:
It is very important that an employer verifies the identiy of an employee hired to work to ensure that the employee is who s/he says he is. This is to help the employer avoid unpleasant future or immediate occurences from such an employee.
Cheers
Unlike the overview module in Hootsuite Analytics, which offers one set of aggregated analytics data, ___________________ allows you to run an unlimited number of customizable and shareable real-time analytics reports, dialed precisely to the diverse reporting needs of your organization.
A. the Reports feature
B. the Metrics module
C. the Social Data feature
D. the Insights feature
E. the Analytics module
Answer: The correct answer is "A. the Reports feature".
Explanation: Unlike the overview module in Hootsuite Analytics, which offers one set of aggregated analytics data, the reports feature allows you to run an unlimited number of customizable and shareable real-time analytics reports, dialed precisely to the diverse reporting needs of your organization.
The Reports feature in Hootsuite Analytics allows you to run unlimited customizable and shareable real-time analytics reports, offering more flexibility and adaptability than the standard overview module.
Explanation:Unlike the overview module in Hootsuite Analytics, which only offers one set of aggregated analytics data, option A. The Reports feature allows you to run an unlimited number of customizable and shareable real-time analytics reports. This feature is dialed precisely to cater to the diverse reporting needs of your organization. It is more adaptive and flexible than the standard overview module in Hootsuite Analytics. With the reports feature, you can create specific reports that are tailored to your needs, allowing you to track a wide range of important performance metrics and obtain more detailed insights.
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Manning Corporation uses the periodic inventory system. On April 1, Manning Corporation sells merchandise on account for $15,000 with terms 1/15, n/30. Manning Corporation had paid $6,000 to acquire the merchandise. The buyer is not satisfied with some of the merchandise and on April 7 returns merchandise with an invoice price of $1,000 to Manning Corporation. The merchandise returned to Manning Corporation had cost Manning Corporation $600. On April 10, the buyer pays for the merchandise it retains. How would Manning Corporation record the buyer’s return of merchandise on April 7?
Answer:
The entry on April 7 is:
Dr Sales returns and allowances $1,000
Cr Accounts receivable $1,000
Explanation:
Under periodic inventory system, returns made by the customer should be recognized and closed to sales returns and allowances account. Thus, Manning Corporation should debit sales returns and allowances and credit account receivable in the amount of $1,000. Sales returns and allowances is a contra account of Sales. In effect, this will decrease sales made by the period.
If the current price of a product is above the market equilibrium price, there is ________ of this product.
When the price of a product is above the market equilibrium price, there is a surplus of that product. This is because the supply of the product exceeds its demand.
Explanation:In the context of supply and demand, if the current price of a product is above the market equilibrium price, there is a surplus of this product. Market equilibrium is the price at which the quantity supplied equals the quantity demanded. If the price is set above this equilibrium point, the quantity supplied would exceed the quantity demanded causing a surplus. For example, if a shirt is priced at $20 and this is the equilibrium price, but the seller decides to increase the price to $25, fewer people will buy the shirts leading to a surplus supply of shirts remaining unsold.
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If the current product price is higher than market equilibrium, there is a surplus; this means producers are producing more than consumers want. It results in a producer surplus, where producers gain extra benefit by selling at a price above the base price they were willing to accept.
Explanation:If the current price of a product is above the market equilibrium price, there is a surplus of this product. In economic terms, a market is in equilibrium when the quantity supplied is equal to the quantity demanded. However, if the product is priced above the equilibrium price, then suppliers produce and are willing to sell more of the product than consumers are willing to buy, leading to an excess supply or surplus. This scenario results in producers realizing a producer surplus, which is the additional benefit gained by producers when the market price is greater than their base price. An example of this is when at a price of $45, firms are willing to supply 14 million units of a product but are able to charge a higher price of $80, thus gaining an extra benefit.
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What are the opportunity costs of going to the gym for a workout rather than studying for an economics test?
Answer:
see below
Explanation:
Opportunity cost is the value of the forfeited benefits as a result of making a decision in a certain way. Decision making involves choosing one item over others. The cost or value of the option not chosen is the opportunity cost. The value of the forfeited option is the opportunity cost.
In choosing to go to the gym, the forgone activity is studying for the economic exam. The benefits associated with studying for the economic test is the opportunity cost. The value attached to the economic test, such as good grades, passing the test, or any reward arising from studying for the test, is the forfeited benefit and hence the opportunity cost.
Although Costco pays its employees substantially more than its closest competitor, Sam’s Club, it has similar financial returns on its labor costs due to which of the following?
a. lower turnover and higher levels of productivity
b. higher turnover and higher levels of employee productivity
c. promotion-from-within policies and better benefits
d. a larger part-time workforce
Although Costco pays its employees substantially more than its closest competitor, Sam’s Club, it has similar financial returns on its labor costs due to lower turnover and higher levels of productivity
Option A
Explanation:
While Costco costs its workers slightly more than its closest competitor, Sam's Club, Costco pays higher prices in order to recruit more professionals and to provide better customer service due to lower turnover and a similar financial return.
Direct costs involve wages for staff making a product and employees on the production line, while indirect costs apply to assistance, such as employees repairing factory equipment.
When labor costs are wrongly distributed or measured, the price of goods or services may be changed from their actual costs and profits from losses.
Which of the following constitute Porter's 5 factor model?
A. Threat of new entrants, threat of partners, bargaining power of buyers, bargaining power of suppliers, current rivalry
B. Threat of new entrants, threat of improvers, bargaining power of buyers, bargaining power of suppliers, current rivalry
C. Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, future rivalry
D. Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, current rivalry
Answer:
D. Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, current rivalry
Explanation:
Porter's 5 Factor Model is also known as Porter's five forces. Michael E. Porter was a Professor from Harvard Business School. The model is usually applied in an industry to identify the forces that compete to shape the industry. Put differently, these five forces help to analyse an industry's Strength, Weaknesses, Threats and Opportunities (SWOT) Analyses.
As detailed in the answer, the five categories in Porter's model are; Competitors in the industry, Potential of new entrants in the industry, Power of suppliers, Power of customers and the threat of substitute products.
Final answer:
Porter's Five Forces model considers the threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and current rivalry to analyze the competitive intensity and attractiveness of an industry.
Explanation:
The correct answer is D. Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, current rivalry. These five factors constitute Porter's Five Forces model, which is used to analyze the competitive intensity and attractiveness of an industry.
Porter's Five Forces model considers the following factors:
Threat of new entrants: Refers to the likelihood of new companies entering the industry. Higher barriers to entry make it more difficult for new firms to enter, reducing competition and increasing the market power of existing firms.Threat of substitutes: Examines the availability of alternative products or services that can fulfill the same customer needs. The presence of close substitutes can limit the pricing power of firms.Bargaining power of buyers: Assesses the influence that customers have on the pricing and terms negotiated with firms. Strong buyer power can reduce profitability.Bargaining power of suppliers: Considers the influence that suppliers have on the production process and pricing. Powerful suppliers can demand higher prices or limit the availability of key inputs, impacting firms in the industry.Current rivalry: Analyzes the level of competition among existing firms in the industry. Intense rivalry can lead to price wars and reduced profitability.The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
Refer to Scenario 19.2. If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer, this would be an example of ____ pricing.
Answer: Base point pricing
Explanation: In simple words, Base point pricing is the method of companies fixing their products prices on the basis of a base cost plus production costs to a particular market.
While some find this a form of collaboration between the selling companies (it reduces the ability of purchasing firms to eliminate competition through position or private transport), it is standard practice in the steel and automotive sectors.
Hence from the above we can conclude that the given case depicts base point pricing.
The human resources department of Mevertyn, a public relations firm, decided to stop giving meal coupons to the employees who come late to office. Which of the following theories of motivation does this scenario best illustrate?
A) McClelland's Learned Needs TheoryB) Equity theoryC) Alderfer's ERG TheoryD) Reinforcement theory
Answer:
D) Reinforcement theory
Explanation:
Reinforcement theory of motivation states that individuals tend to repeat the actions having positive consequences and would avoid the actions having harmful consequences.
In the above case the Mevertyn would not give meal coupons to employees who come late to office. It should motivate employees to come in time to office to get reward in form of meal coupons or to avoid punishment in form of getting no meal coupons.
Your text discusses several challenges facing managers today. As Cook continues to grow Apple, he is likely to encounter which of those challenges?
Answer:
Global crisis management
Explanation:
Cook will need to consider global crisis management as one of the main challenges he will face while growing apple. The main reason why he needs to consider crisis management is due to the fact that undesirable occurrences might happen and it is better to prepare for an expected event before it happens. This will ensure effective and efficient operation.
We know that DVD players have seen a signifcant fall in price over recent years. We also know that this fall in price have been caused by significant decreases in the cost of producing DVD players. In terms of the supply and demand analysis this is explained by_________.
A. A shift to the left of the supply curve
B. A shift to the right of the supply curve
C. A movement along the supply curve to the left
D. A movement along the supply curve to the right
E. A shift to the right of the demand curve
Answer:
E. A shift to the right of the demand curve
Explanation:
Demand curve can shift to the right if income of consumers increase or price of commodity falls generally. In this case the price fell due to lower production cost. The scenario is broad enough to cause demand to shift to the right.
A non-bulk package containing a hazardous substance that meets or exceeds the reportable quantity per pack must be marked with the letters __________ on the package in association with the proper shipping name.
RQ
Answer:
RQ stands of Reportable Quantity.
A "think global, act global" approach to strategy-making is preferable to a "think local, act local"approach when
A. A big majority of the company's rivals are pursuing localized multicountry strategies
B. Country-to-country differences are small enough to be accommodated with the framework of amostly uniform global strategy
C. Plants need to be scattered across many countries to avoid high shipping costs
D. Market growth rates vary considerably from country to country
E. Host governments enact regulations requiring that products sold locally meet strict manufacturingspecifications or performance standards
Answer:
The Correct option is C
Explanation:
A think global, act global approach to strategy making is preferable to a think local, act local approach when the country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy.
Answer:
hi
Explanation:
__________is a process whereby companies compare their practices and performance measurements to those of other companies.
Answer:
Benchmarking.
Explanation:
Benchmarking is a process that any company or organizations use to compare their own performance with that of other companies. This is most popular among companies belonging to the same industry. There are generally three, dimensions that are analyzed in this measurement process, they are: Quality, Time, and Cost.
The organization's _____ is stated in a challenging manner to inspire employees, customers, and shareholders.a. goalsb. mission statementc. vision statementd. objective
Answer: Mission Statement
Explanation:
A company's mission statement is a short description of the basic aim the company wants to achieve, what the company holds as it's key values, and the geographical area around which it would love to achieve it's objectives.
The mission statement as stated in the question most times is written in a challenging manner to inspire the employees of the company, it's customers and other stakeholders to make positive impact in the society.
A bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rate that is tied to a market interest rate is called
A) credit rationing.B) a line of credit.C) continuous dealings.D) none of the above.
Answer:
credit rationing
Explanation:
Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also is a means to maintain equilibrum between loan funds and loan demands.
Cheers.
XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in length and have fixed rents. XYZ's contracts contain a clause in which both parties agree to annual adjustments of rent based on tax increases and other operating costs. If the previous year did not see more than a five percent increase in these costs, there is no change in the rent. What is the clause?
A. Allowable Vacancy Rate Clause
B. Escalator Clause
C. Operating Costs Adjustment Clause
D. Periodic Tenancy Clause
Answer:
B. Escalator Clause
Explanation:
XYZ development acts as landlord to businesses, there is agreement that rent can change based on the level of tax. An escalator clause is a clause in any agreement that gives room for increase in prices under certain condition. If an agreement has got an escalator clause, if for instance the tax rate rises, then the prices rise proportionately. In this case of XYZ Development Inc., the escalator clause is in use. The correct answer is B.
Employers who implement effective health and safety programs should expect all these results except ____________.
Employers who implement effective health and safety programs should expect all these results except Decreased, though slight, productivity
Explanation:
The preceding four main components will be an effective employee safety and health programme:
human resources commitment and
employee engagement,
work-site analysis, risk prevention and
treatment and training for safety and health.
Prevent injuries and diseases in the workplace. Improve law and regulation compliance. Reduce costs, with significant cuts in wage rates for employees.
Three sections usually account for a health and safety policy: the Declaration of Intent, portion of the Company and the Arrangements. The General Declaration of Purpose describes the importance of health and safety for the company and the desired commitment.
Actions that effective strategic leaders can take to develop an ethical organizational culture include all of the following EXCEPT: a. relying on the fundamental goodness of individuals. b. using reward systems that recognize acts of courage. c. creating a work environment where individuals are treated with dignity. d. communicating goals that describe the firm's ethical standards.
Answer: a. relying on the fundamental goodness of individuals.
Explanation:
All the options listed above except "option a" are actions that effective strategic leaders take to develop an ethical organizational culture.
Ethical organizational culture are standard that guides how workers behave in an organization.
Option b, using reward systems that recognize acts of courage will not only encourage such a worker alone but the entire workforce, humans love to be appreciated and recognised when they are outstanding, this will create competition among all the worker as every one will love to stand out.
"Option C" creating a work environment where individuals are treated with dignity is another very good strategy. Every employer must see and treat their worker as an asset, this will increase their commitment and efficiency to the organization. They must be seen as important in the organization.
d. communicating goals that describe the firm's ethical standard is also very important because it will help every one to run with the goal and play their role in making sure those goals are achieved.
If the supply and demand curves cross at a price of $2, at any price about that there will be a
a. an equilibriumb. a surplusc. a shortagec a crisis
Answer:
a surplus
Explanation:
Let’s contemplate one situation within which the quantity that producers wish to sell doesn’t match the quantity that buyers wish to shop for. Suppose that a market produces quite the amount demanded. Let’s use our example of the value of a gallon of gas. Imagine that the value of a gallon of gas were $2 per gallon.
At this value, the amount demanded is one hundred gallons, and also the amount of gas equipped is two hundred gallons. Now, compare amount demanded and amount equipped at this value. amount equipped (200) is bigger than amount demanded (100). Or, to place it in words, the quantity that producers wish to sell is bigger than the quantity that buyers wish to shop for. we tend to decision this a scenario of excess offer (since Qs > Qd) or a surplus
Answer:
B
Explanation:
There will be a surplus because the quantity supplied will be higher than quantity demanded. When the price is above the equilibrium price, which is the price at which the two curves cross each other in this case $ 2, the supplier is willing to supply more since he will make more money at higher price while the consumers look for a way to buy less leading to excess supply. After a while, the supplier will be force to reduce price instead of holding the goods to attract consumers again.
The Retreat (Scenario)
The first-line managers of ELH Inc. were sent on a retreat to Silver Falls for their inaugural strategic planning meeting. Few people knew each other, but their task was clear: design a new performance appraisal system for subordinates that would be effective and usable.
The first day little was accomplished except for the jockeying to see who would be the official leader. Finally, Jim seemed to wrangle control and helped provide the first real direction for the group.
By the second day, the group seemed to begin working well. They spent the morning determining group standards with respect to how they would make decisions within the group and how to manage the idea-generation process.
On the third and fourth days, the managers got down to work and moved amazingly quickly, with ideas flowing freely. By the end of the fourth day, they had a workable system developed, and they felt satisfied. That night they all signed off on a new document to be presented to the regional manager the next day. They all felt a twinge of regret at having to break up the group and return to normal work life.
When the management team left Silver Falls to return to their own teams and departments, they had just completed the ________ stage of group development.
a. performing
b. storming
c. forming
d. adjourning
Answer:
d. adjourning
Explanation:
A group's disbanding is called the adjourning phase. The adjournment stage, created by Bruce Tuckman in 1977, is the fifth and final phase of group creation that takes place whenever a team concludes its work and then dissolves.
At around this point, it is crucial that team members get sufficient resolution and appreciation for the work they've done.
Remember that not all groups are going through a period of adjournment. If the team remains together for future projects, the adjournment stage of group growth would not go through.
Which of the following journal entries would be recorded if a business purchased office supplies on account in a previous accounting period and now makes a cash payment of $750 to the supplier to settle the account?
A. Accounts Payable 750 Cash 750
B. Accounts Payable 750 Office Supplies 750
C. Cash 750 Accounts Payable 750
D. Office Supplies 750 Cash 750
Answer:
The correct answer is A. Account payable 750 Cash 750.
Explanation:
This problem requires us to tell the accounting entry a business will make when making payment against offices supplies puchased on credit.
When the business has bought it it would have made following entry
Offices supplies debit 750
to payable credit 750
On settlement the business will make entry as mentioned in option A.
Final answer:
The correct journal entry for a business making a cash payment to settle an account for previously purchased office supplies is to debit Accounts Payable and credit Cash by $750.
Explanation:
If a business purchased office supplies on account in a previous accounting period and is now making a cash payment to settle the account, the correct journal entry would be to debit (decrease) Accounts Payable and credit (decrease) Cash. This is because the payment of cash settles an outstanding liability, thus reducing both the cash on hand and the amount owed to the supplier.
The correct journal entry, from the given options, is:
A. Accounts Payable 750 Cash 750
It is important to note that because the office supplies were acquired on credit in a previous period, the expense was already recognized at the time of purchase. Now, by making the cash payment, the liability (Accounts Payable) decreases, which does not affect the supplies expense account again.
The sociological study of markets focuses on which factor, or which combination of factors, to explain how markets work?
Answer:
Social networks, power, and culture
Explanation:
Sociological Studies refer to the study of individual behavior and actions within a culture or society. In markets it focuses mainly on the social ex-changes and it's structuring, under capitalism. That being said the is tries to examine the combination of Social networks, power, and culture in order to explain how those markets work.
Which of the following is an example of the benchmarking function of the budgeting process? A budget demands integrated input from different business units and functions.
Budgeting requires close cooperation between accountants and operational personnel.
Budget figures are used to evaluate the performance of managers.
The budget outlines a specific course of action for the coming period.
Answer:
The benchmarking function of budgeting system involves the evaluation of performance of managers.
The correct answer is C
Explanation:
The integration of inputs from different business inputs and function is done at the planning stage of budgeting. It does not involve benchmarking.
Budgeting requires requires close cooperation between accountants and operational personnel. This is referred to as active participation in budgeting. It helps to overcome behavioural challenges of budgeting.
Budget figures are used to evaluate the performance of managers. This is a benchmarking function of budgeting because it involves the comparison of performance of managers with established criteria so as to determine their level of success.
The budget outlines a specific course of action for the coming year. This indicates that a budget is a financial plan that outlines future courses of action. This does not require benchmarking.
In financial markets, firms and governments in search of funds to pay for their daily operations would be the:___________.
Answer:
Borrowers
Explanation:
Financial markets provide the platform for trading of financial assets (instruments) . In the financial markets, through the activities of a combination of participants , funds from the surplus sector (investors) are channeled to the deficit sector (borrowers).
The surplus sector comprises of persons, government, firms e.t.c who have more funds than they need to spend right away. Conversely, the deficit sector represents parties (firms, individuals, government) who are have shortage of funds for whatever purpose-e.g consumption, business expansion, funding of daily operations e.t.c . In short, they are in search of funds for different purposes.
Financial instruments : These are contracts that confer rights on their holders (investors/lenders) to claim the income generate by the assets owned by the borrowers.
Final answer:
In financial markets, firms and governments seeking funds for operations or new projects are demanders in the financial market, often raising funds through bond issuance. The correct choice is c. Firms in the financial market.
Explanation:
In financial markets, firms and governments in search of funds to pay for their daily operations would be the demanders of financial capital. These entities may seek funds from various sources, one common method is by issuing bonds. For instance, the federal government issues bonds to raise money for various expenses, including infrastructure and daily operations. Similarly, local school districts may sell bonds to finance new school construction, and colleges or universities often sell bonds to finance new building projects on campus. Likewise, firms sell bonds to finance expansion or other investments. Therefore, the bond market plays a critical role as it allows these institutions to obtain the necessary capital by selling debt securities to investors who effectively lend money in return for the bond issued.
The correct answer to the provided choices is c. Firms in the financial market. While it could seem that the answer might be related to firms in the goods or labor markets, those refer to the production of goods and services and the hiring of labor, respectively, which are different from the context of borrowing and lending in financial markets.