In your company's management development program, there was a heated discussion between

some people who claimed, "Theory is impractical and thus no good," and others who claimed,

"Good theory is the most practical approach to problems." What position would you take and

why?​

Answers

Answer 1

Answer:

The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.

This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.

Without theory, managers have to rely too much on intuition, which can often fail.


Related Questions

QUESTION 7 of 10: Which is NOT one of the five steps in conducting market research?
ОООО
a) Apply for government funding
b) Identify problem
c) Obtain data
d) Choose the best solution
Submit

Answers

Answer:

Apply for government funding

Explanation:

It is not one of the five steps in conducting market research.

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.a) trueb) false

Answers

Answer: False

Explanation:

A sole proprietorship is a form of business which is typically small and managed by one person. The person bears all the risk and is also entitled to all the profit made.

It should be noted that the sole proprietor usually has little capital and therefore the statement in the question that "One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources is false".

Jim Brown, a tax practitioner, received a complaint from the IRS for disreputable conduct. Which of the following items was not required to be listed in the complaint?
A. The unit and employee of the Internal Revenue Service that recommended the action against Jim
B. Clear and concise description of the facts that constitute the proceeding
C. Clear and concise description of the law that constitute the proceeding
D. Specific sanction sought

Answers

Answer: a. The unit and employee of the Internal Revenue Service that recommended the action against Jim.

Explanation:

From the question, we're informed that Jim Brown, a tax practitioner, received a complaint from the IRS for disreputable conduct.

Of the options given, the item that is not required to be listed in the complaint is the unit and employee of the Internal Revenue Service that recommended the action against Jim.

This is not necessary as the necessary things are clear and concise description of the facts that constitute the proceeding, clear and concise description of the law that constitute the proceeding and specific sanction sought.

The item "the unit and employee of the Internal Revenue Service that recommended the action against Jim" was not required to be listed in the complaint of the IRS for disreputable conduct.

The Internal Revenue Service is the federal government's revenue service, in charge of collecting taxes and enforcing the Internal Revenue Code, which is the main body of statutory regulatory tax legislation.

Conviction, false or misleading information, Solicitation of employment, willfully failing, misappropriation, direct or indirect influence, Disbarment, and many more are examples of disreputable conduct for which a solicitor, certified public bookkeeper, or enrolled professional may be removed from office or stopped from exercise before the Agency.

Therefore, the correct option is A.

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Ron Landscaping's income statement reports net income of $73,300, which includes deductions for interest expense of $10,500 and income taxes of $32,900. Its times interest earned is:

Answers

Answer: 11.1 times

Explanation:

Times Interest Ratio = Earnings before Interest and Tax/ Interest

Earnings before Interest and tax = Net Income + Interest + Tax

= 73,300 + 10,500 + 32,900

= $116,700‬

Times Interest ratio = 116,700/10,500

= 11.1 times

McDonald’s pressed on with the strategic plan of offering all-day breakfast in spite of initial struggles because strategic decisions require long-term commitment.a. Trueb. False

Answers

Answer: True

Explanation:

Strategic decisions do indeed take long-term commitment because they are meant to help the company in the long term not the short.

Strategic decisions usually set goals and achieve results in the long term. They are not expected to yield results in the short terms which is why MacDonald's pressed on with the all-day breakfast despite initial challenges.

(Analyzing the cash flow​Statement) ​Google, Inc.​ (GOOG), is one of the most successful Internet​ firms, and it experienced very rapid growth in revenues from 2011 through 2014. The cash flow statements for​ Google, Inc. spanning the period are found​ here: .Answer the following questions using the information found in these​ statements:a. Is Google generating positive cash flow from its​operations?b. How much did Google invest in new capital expenditures over the​ period?c. Describe​ Google's sources of financing in the financial markets over the​ period?d. Based solely on the cash flow statements for 2011 through​2014, write a brief narrative that describes the major activities of​ Google's management team over the period.Is Google generating positive cash flow from its​ operations?​ (Select the best choice​ below.)a. Google has generated positive cash flow from its operations during the years​ 2012, 2013, and 2014.b. Google has generated positive cash flow from its operations during the years​ 2011, 2012, and 2014.c. Google has generated positive cash flow from its operations during the years​ 2011, 2013, and 2014.d. Google has generated positive cash flow from its operations during the years​ 2011, 2012,​ 2013, and 2014.(US$ millions) 12/31/2014 1 2/31/2013 12/31/2012 12/31/2011Net income $14,463 $12,898 $10,786 $9,720Depreciation 3,470 2,780 1,909 1,357Amortization 1,470 1,131 914 483Deferred taxes (179) (441) (298) 332Noncash items 2,664 2,234 2,310 2,024Changes in working capital 349 (29) 860 631Cash from operating activities $22,237 $18,573 $16,481 $14,547Capital expenditures $(10,937) $(7,345) $(3,201) $(3,437)Other investing cash flow items (10,086) (6,327) (9,821) (15,612)Cash from investing activities $(21,023) $(13,672) $(13,022) $(19,049)Interest and financing cash flow items $(1,449) $(282) $(98) $88Total cash dividends paid 0 0 0 0Issuance (retirement) of stock 4 0 50 0Issuance (retirement) of debt (15) (532) 1,341 793Cash from financing activities $(1,460) $(814) $1,293 $881Foreign exchange effects $(467) $(3) $2 $20Net change in cash $(713) $4,084 $4,754 $(3,601)

Answers

Answer:

Analyzing the Cash Flow Statement (Google, Inc. (GOOGLE)

a. Is Google generating positive cash flow from its​ operations?

Google is generating positive cash flow from its operations.  Throughout the period under review it has generated a total of $71,738 million positive cash flow from its operations.  See the yearly breakdown below:

(US$ millions)                          12/31/2014 1 2/31/2013 12/31/2012 12/31/2011

Cash from operating activities $22,237      $18,573      $16,481    $14,547

b. How much did Google invest in new capital expenditures over the​ period?

It invested a total of $24,920 in new capital expenditures over the period.  See breakdown below:

(US$ millions)               12/31/2014   1 2/31/2013   12/31/2012   12/31/2011

Capital expenditures    $(10,937)      $(7,345)        $(3,201)        $(3,437)

c. Describe​ Google's sources of financing in the financial markets over the​ period?

Google's sources of financing in the financial markets over the period are from issuance of stock and debt.  It generated $50 million in 2012 from issuance of stock.  In 2011 and 2012, it generated $793 million and $1,341 million from issuance of debt respectively.

d. Based solely on the cash flow statements for 2011 through​2014, write a brief narrative that describes the major activities of​ Google's management team over the period.Is Google generating positive cash flow from its​ operations?​ (Select the best choice​ below.)

d. Google has generated positive cash flow from its operations during the years​ 2011, 2012,​ 2013, and 2014.

Explanation:

a) Data and Calculations:

(US$ millions)                          12/31/2014 1 2/31/2013 12/31/2012  12/31/2011

Net income                                   $14,463      $12,898     $10,786      $9,720

Depreciation                                    3,470          2,780          1,909         1,357

Amortization                                     1,470            1,131             914            483

Deferred taxes                                  (179)            (441)          (298)            332

Noncash items                               2,664          2,234          2,310         2,024

Changes in working capital              349             (29)            860             631

Cash from operating activities $22,237      $18,573       $16,481      $14,547

Capital expenditures                $(10,937)     $(7,345)       $(3,201)     $(3,437)

Other investing cash flow

    items                                     (10,086)         (6,327)        (9,821)      (15,612)

Cash from

 investing activities                $(21,023)     $(13,672)    $(13,022)   $(19,049)

Interest and financing

 cash flow items                      $(1,449)          $(282)          $(98)           $88

Total cash dividends paid                 0                   0                 0                0

Issuance (retirement) of stock          4                   0               50               0

Issuance (retirement) of debt         (15)            (532)           1,341           793

Cash from financing activities $(1,460)          $(814)        $1,293         $881

Foreign exchange effects         $(467)              $(3)               $2          $20

Net change in cash                    $(713)        $4,084         $4,754    $(3,601)

b) Google's statement of cash flows is one of the three fundamental financial statements which a company is required to prepare and present to its stockholders and the general public.  This statement shows the cash generated by the company's management from operating activities, financing activities, and investing activities.  From this statement, the management, stockholders, creditors, and investment analysts will gain invaluable data to assess management's performance in key financial variables.

The experience gained by first-line managers as they perform their jobs enables them to acquire all the skills they will need when promoted to higher levels of management.
a. True
b. False

Answers

Answer:

False

Explanation:

First line managers occupy the position just above non managerial staff. They supervise teams in a department and ensure they perform to meet organisational goals.

First line managers are closest to employees.

Although the hands on experience gained as a front line manager is important when the person is promoted to a higher position, it does not provide all the skills of higher management.

Higher manager positions needs leadership skill where implementing directives of top management is balanced with the ensuring first line managers perform well.

Negotiation skills needs to be developed by higher management to resolve conflicts between competing needs.

How are manufacturing companies and service companies alike? a. They both produce products. b. They both have product-production costs. c. They both have labor, material, and overhead costs. d. They both have manufacturing costs.

Answers

Answer:

The answer is d.

Explanation:

A manufacturing company uses labor and other inputs to transforms raw materials into finished product and then sells the product, like a merchandising company. A service company, on the other hand, does not produce/sell products, instead it provides service.

The _____ is the starting point in creating a marketing mix. a. priceb. productc. distribution channeld. promotional mediae. production line

Answers

Answer:

B.  product

Explanation:

The marketing mix refers to a marketing strategy that involves four types of Ps i.e. product, price, promotion, and place

The product is the beginning point for developing a marketing mix as without product no organization could able to set the prices, no promotion took place nor any location could be set

Also the product should be decided by the company which type of product should be launched by considering all rivals in the market place

Therefore, the option B is correct

Over 1.5 million different species have been discovered on Earth, and scientists discover about 15,000 new species each year. These species are very different, ranging from bacteria and algae to whales and redwood trees. Select four characteristics that all of these species have in common.

A

All species have metabolic functions.

B

All species have cell walls.

C

All species are composed of cells.

D

All species reproduce.

E

All species use sunlight to make food.

F

All species require energy.



THE SUBJECT IS SCIENCE!!!!!!!

Answers

The answer is A, C, D, and F

Characteristics that all of these species have in common:

All species have metabolic functions.All species are composed of cells.All species reproduce.All species require energy.

How many species have been identified on Earth?

2.13 million species were recognized on the earth in 2021. The distribution of 1.05 million insects, more than 11,000 birds, more than 11,000 reptiles, and more than 6,000 mammals is shown in the graph. These numbers may be a little high, especially for less well-known categories like plants or fungi.

86% of land-dwelling species and 91% of aquatic species, according to scientists, have not yet been thoroughly investigated. Researchers are always searching. Every year, some 18,000 new species are found. On our globe, there are an estimated 8.7 million plant and animal species. This indicates that a little more than 86 percent of terrestrial species and 91 percent of sea species have yet to be identified.

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Team morale depends on the following except for:
a. Support
b. Resources
c. Connections
d. Communication

Answers

Explanation:

Except for resources.........

________ decisions involve higher level issues concerned with the overall direction of the organization; these decisions define the organization’s overall goals and aspirations for the future.

Answers

Answer:

strategic decision

Explanation:

a decision that involves higher-level issues and that is concerned with the overall direction of the organization, defining the overarching goals and aspirations for the organization's future.

Decisions that define the organization’s overall goals and aspirations for the future and also involve higher-level issues concerned with the overall direction of the organization are known as strategic decisions.

What is an organization?

A group of people who works in a company, an institution or an association with the aim of achieving the same goal or aim or working in the same direction forms an organization. An organization is an entity, that gets affected by various factors, and the people who are working in the organization are also get affected by various things.

Factors that mostly affect the organization, as well as the people working in it, are the environment and the aim for which they all are working. At the same time, it is necessary that they work for the same goal and with the same intention.

As a result, sometimes the organization has to make decisions that define the organization’s overall goals are known as strategic decisions.

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What can McDonald’s do to win customers over?

Answers

Fix the ice cream machine

Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $959,000 Shop direct labor 700,000 Shop and repair equipment depreciation 46,100 Shop supervisor salaries 128,300 Shop property taxes 23,300 Shop supplies 17,900 Advertising expense 19,200 Administrative office salaries 82,500 Administrative office depreciation expense 10,500 Total costs and expenses $1,986,800 The average shop direct labor rate is $25.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $ per direct labor hour

Answers

Answer:

7.7 per direct labor hour

Explanation:

Number of direct labor hours = 700,000 / 25

Number of direct labor hours = 28,000 labor hours

Overhead cost = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Overhead cost = 46,100 + 128,300 + 23,300  + 17,900

Overhead cost = 215,600

Predetermined overhead rate = Overhead cost/Direct labor hours

= 215,600 / 28,000 labor hours

= 7.7 per direct labor hour

Pearse Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Fixed Variable
per month per tenant-day
Revenue $32.10
Wages & Salaries $2,400 $ 7.00
Food & Supplies $ 900 $11.30
Facitlity Expenses $8,600 $ 3.50
Admin Expenses $6,700 $ 0.30
Total Expenses $18,600 $22.10
Actual results for December:

Revenue $97,978
Wages & Salaries $23,530
Food & Supplies $35,224
Facility Expenses $19,780
Admin. Expenses $ 7,404
1. The activity variance (show any unfavorable variance as a negative number) for net operating income in December would be:

2. The net operating income in the planning budget for December would be:

3. The net operating income in the flexible budget for December would be:

Answers

Answer:

Pearse Kennel

1. Activity variance for net operating income in December would be:

= $200

2. The net operating income in the planning budget for December would be:

= $11,400

3. The net operating income in the flexible budget for December would be:

= $11,200

Explanation:

Data and Calculations:

                                   Fixed          Variable        Planning   Flexible  Variance

                             per month   per tenant-day   Budget    Budget

Revenue                                         $32.10         $96,300   $95,658    $642

Wages & Salaries    $2,400           $ 7.00           23,400      23,260       140

Food & Supplies       $ 900            $11.30           34,800       34,574      226

Facility Expenses   $8,600            $ 3.50            19,100        19,030        70

Admin Expenses    $6,700            $ 0.30            7,600          7,594          6

Total Expenses     $18,600           $22.10       $84,900     $84,458   $442

Net operating income                                       $11,400       $11,200  $200

Why is Business process reengineering and organizational change seen to have a pain-pleasure relationship

Answers

Answer:ungesoma bana

Explanation:

Finance managers tend to be more customer centric than marketers
True or false?

Answers

Answer:

imma say its tru

Explanation:

Answer:

True

Explanation:

I took the test on edge

Consider the following transactions for Thomas Company and their effect ont he accounting equation. Determine the new balance for each component of the accounting equation from the transactioon. If an amount box does not require an entry, leave it blank.1. Investment in the business= $17,010
2. Borrow cash= $7620
3. Purchase equipment= the list price was $8700 but the final price was $8300
4. Revenues earned = $298,600, the cash has been collected from the customers for all revenue earned
5. Expenses incurred= total $210,900 during the same year, all expenses paid in cash
6. Dividens= end of each quarter, the company distributed cash to stockholders, the sum of those quarterly distributions was $15,000
Transaction Assets =Liabilities Stockholders' Equity
Beginning $0 $0 $0
1. Investment in the business $17,010
2. Borrow cash $7620
3. Purchase equipment
4. Revenues earned
5. Expenses incurred
6. Dividends

Answers

Answer:

Since there is not enough room here I used an excel spreadsheet. I assumed that all sales and expenses were collected and paid in cash.

Answer:Answer:so here is it explained fully.|Assests=||Liabilities +||StockH.Eq.|Investment n Bus.: |$17160=||$0.00+||$17,160||Borrow Cash: |$24,900=||$7,740+||$17,160||Purchase Equipment:|$24,900=||$7,740+||$17,160||Revenues Earned: |$323,300=||$7,740+||$315,560||Expenses Incurred:|$111,600=||$7,740+||$103,860||Dividends:|$96,200=||$7,740+||$88,460||


Explanation:image explains how I got those numbers and shows that I have the correct on my worksheet.You are basically subtracting and adding the transaction from either the assets or stockholders’ equity. !THESE ANSWERS ARE CORRECT FOR ONLY CERTAIN NUMBERS GIVEN TO YOUR SPECIFIC TRANSACTIONS!check image below if you have different number on your work sheet to figure out how to get the correct answer with the numbers you received on your work sheet.

In the bona fide need obligation rule for requesting funds to fund warfighters, what critical questions do you ask to ensure adherence to this rule? A) Who is responsible for enforcing the bona fide need rule and rules of engagement for funding warfighters? B) Is there a valid requirement for the goods or services as well as the quantity and duration of the services or supplies provided? C) Does a bona fide need exist in the year of execution authorized by the appropriation? D) Does the proposed dollar amount exceed authorizations?

Answers

Answer:

C) Does a bona fide need exist in the year of execution authorized by the appropriation?

Explanation:

Bona fide is a rule which helps to ensure that, there is a bona fide need for the appropriation of money in a given fiscal year. In a situation there is none, then there would be no need for any allocation of money. In the case of funds for the warfighters, the critical question would be if there is any bona fide need for such figher planes or jet.

You work for a drywall company and are trying to secure a contract with a large commercial builder. The purchasing agent from the commercial builder is in town and staying at the Ramada Inn. You contact him by phone and set up a meeting. You tell him, "I’ll meet you at your hotel in an hour." You arrive at the Ramada Inn’s lobby a few minutes early. You take a seat, watching the elevator for the purchasing agent. You wait. Twenty minutes later, you’re still waiting. You ask the front desk to ring the agent’s room. The agent answers, "You’re late. I’ve been waiting for you for 15 minutes."

What communication barrier is described in this situation?

a. Distractions
b. Bypassing
c. Lack of language skills

Answers

Answer:

B

Explanation:

Bypassing is a type of communication barrier were two people communicating think they understand each other but actually they miss each other's meaning.

I and the purchasing agent thought we had effectively communicated and set up a meeting but in reality, we hadn't agreed on a meeting venue.

Answer:

B

Explanation:

I Know i am in the future

The stock of North American Dandruff Company is currently selling at $80 per share. The firm pays a dividend of $2.50 per share.a. What is the dividend yield?b. If the firm has a payout rate of 50 percent, what is the firms P/E ratio?

Answers

Answer:

3.1% / 0.031

16

Explanation:

dividend yield =  dividend per share / share price

$2.50 / $80 = 0.031 = 3.1%

Payout ratio = dividend per share / earning per share = 50% = 0.5

$2.5 / earning per share = 0.5

earning per share = $2.5 / 0.5 = $5

P / E = Stock price / earning per share = $80 / $5 = 16

Which of the following best describes a liability? A. Liabilities are future economic benefits to which a company is entitled. B. Liabilities are a form of share capital. C. Liabilities are accounts receivable of the company. D. Liabilities are economic obligations to creditors to be paid at some future date by the company.

Answers

Answer:

The answer is D

Explanation:

Liabilities are present obligations(economic obligations) arising from past actions and the settlement of which results in an outward economic benefits. Liabilities are forms of debts that must be paid back to lenders or creditors.

Liabilities can be current (within 12 months e.g accounts payable) and non-current(more than 12 months e.g bonds).

What is the relationship between the costs of child care and the quality of
experience for the children and teachers?

Answers

While there is an extensive literature on child care quality developed from the perspectives of psychology and education,the study of the cost of child care by economists, and especially the relation between cost and quality of services, is fairly limited.

Chuck, a single taxpayer, earns $58,500 in taxable income and $20,800 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)Required: How much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate?

Answers

Answer;

1. Chuck's federal taxes

The interest from the Helfin bond is tax free as municipal bonds are free of federal taxes.

Chuck's taxable income is therefore $58,500.

The tax bracket for 2020 will mean his tax is;

= 4,617.50 + 22 % *( 58,500 - 40,125)

= $8,660‬

2. Average Tax Rate

= Total tax/ taxable income

= 8,660/58,500

= 14.8%

3. Effective Tax Rate

= Total tax / ( total income)

= 8,660 / ( 58,500 + 20,800)

= 10.9%

4. As given by his income level and the bracket in which he falls as a result, Chucks's marginal tax rate is 22%.

In most businesses, what is the most costly factor of production?

Answers

the answer is, Human capital

Which of the following is an example of external-operational communication?
a. Discussions that senior management holds to determine the goals and processes of the business
b. The orders and instructions that supervisors give employees about dealing with angry customers
c. Advertisements that companies put up on their websites for the general public
d. The reports that employees prepare concerning sales, production, inventories, finance and maintenance
e. The messages that employees write to their supervisors regarding the progress of their work

Answers

Answer:

c. Advertisements that companies put up on their websites for the general public

Explanation:

An external-operational communication can be defined as conversations, interactions or communication that are work related in nature that a business entity has with individuals or group of people such as customers, government agencies, suppliers, etc outside of the organization.

An example of external-operational communication is the advertisements that companies put up on their websites for the general public.

You have ten workers who are all equally skilled and who can do each other worker's job
with the same efficiency. The first worker does a task worth $100, the second, $90, and so on
until the last whose task is worth $10. Worker number one comes to you, demands a raise,
and threatens to quit if the raise is not forth coming. How much at most should you be
willing to pay worker number one?

Answers

It really depends. If all jobs are similar and demand the same requirements, I would find a middle amount like $25 for all ten workers.

If employee number one left, the other employees might be given new jobs, and your loss would only be $10. Therefore, the maximum wage for employee 1 should be $10.

What do you mean by Efficiency?

The two words used in management the most are efficiency and effectiveness. Efficiency is the practice of carrying out tasks with the least amount of time wasted and the best use of available resources, resulting in work that is completed more quickly and without errors.

A worker who is paid an hourly rate receives a fixed sum of money for each hour they work. The employer determines how much a worker will be paid, but it must at least equal the provincial minimum wage. Although the overall minimum wage in Ontario was $11.40 per hour, it might vary for students and specific occupations.

Therefore, The maximum wage for employee 1 should be $10.

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Supply has the potential to contribute to: ___________a. Cost management, profitability, return on assets, competitive position and corporate social policy. b. Cost management, profitability, return on assets and competitive position. c. Cost management, profitability and return on assets. d. Cost management and profitability. e. Cost management.

Answers

Answer: Cost management, profitability, return on assets, competitive position and corporate social policy

Explanation:

Supply has the potential to contribute to cost management, profitability, return on assets, competitive position and corporate social policy.

Supply is defined as the amount of goods or services that a supplier is willing to offer for sale at a particular price and at a certain period. The amount of goods offered can determine the revenue generated and hence the profit made.

Handyman Services has total assets for the year of and total liabilities of $9,400.Requirements
1. Use the accounting equation to solve for equity.
2. If next year assets increased by $3,700 and equity decreased by $1,740​, what would be the amount of total liabilities for Hill CountryHill Country Handyman​ Services?

Answers

The question is incomplete. The complete question is stated below,

Handyman Services has total assets for the year of $14, 700 and total liabilities of $9,400.

Requirements ,

1. Use the accounting equation to solve for equity.

2. If next year assets increased by $3,700 and equity decreased by $1,740​, what would be the amount of total liabilities for Hill CountryHill Country Handyman​ Services?

Answer:

1.

Total Equity = $5300

2.

Total Liabilities = $14840

Explanation:

1.

The basic accounting equation states that the value of total assets is always equal to the sum of the values of total liabilities and the total equity. Thus, the equation can be written as,

Total Assets = Total Liabilities + Total Equity

14700 = 9400 + Total Equity

14700 - 9400 = Total Equity

Total Equity = $5300

2.

The new value of assets and equity after increase is,

Total Assets = 14700 + 3700 = $18400

Total Equity = 5300 - 1740  =  $3560

So, the new value of total liabilities will be,

Total Assets = Total Liabilities + Total Equity

18400 = Total Liabilities + 3560

18400 - 3560 = Total Liabilities

Total Liabilities = $14840

Everyone uses money, and it is important to understand what factors affect the cost of money.
Consider the following scenario:
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over the next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Determine which of these fundamental factors is affecting the cost of money in the scenario described:______.
a. Inflation
b. Time preferences for consumption
c. Risk

Answers

Answer:

A

Explanation:

Inflation is a persistent rise in general price level. Investors usually factor in inflation levels when making investment decisions. they demand rates of return based on the expected inflation. This rate of return is known as a nominal rate of return

Types of inflation

1. Demand-pull inflation :This is when the demand for good exceeds the supply of the goods. As a result the price of the good increases

2. Cost push inflation : this type of inflation is caused as a result of an increase in the cost of goods used in the production of goods and services

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