Which of the following is true of exporting?
A) It avoids the costs of establishing manufacturing operations in the host country.
B) It is the preferred mode for selling bulk products globally.
C) It gives maximum control over the distribution network.
D) It is preferred when tariff barriers are high.
E) It prevents firms from achieving experience curve and location economies.
Answers
Exporting avoids the costs of establishing manufacturing operations in the host country is true of exporting. Option A.
Exporting refers to a firm's strategy of marketing or selling products to customers or other businesses in foreign markets. It is the oldest and most common form of international business activity, as well as the most widely used.
The export of goods and services across borders is known as exporting. It is the most basic and widely used method of entering foreign markets. A manufacturer in one country produces and sells goods to customers in another country using this method.
Hence, the correct answer is Option A "It avoids the costs of establishing manufacturing operations in the host country".
Learn more about Export at https://brainly.com/question/26428996
SPJ4
Related Questions
A company has set up an unfunded deferred compensation plan for its executives. It accrues an expense on its income statement of $5 million per year, but the income tax deduction for these expenses is not taken until deferred compensation is paid out in the future. If the company has a 40% marginal tax rate and a 32% effective tax rate, each year in which the company funds the plan it will recognize a
Answers
Answer:
Deferred tax assets = $2 million
Explanation:
Given:
Total expenses on income statement = $5 million
Marginal tax rate = 40%
Effective tax rate = 32%
Find:
Deferred tax assets
Computation:
Deferred tax assets = Total expenses on income statement x Marginal tax rate
Deferred tax assets = 5 million x 40%
Deferred tax assets = $2 million
Sarai spends her day checking through boxes of built product to ensure accuracy in production. she makes sure there is enough product to meet the demand. based on her tasks, which is most likely her career? manufacturing production process development maintenance, installation, and repair logistics and inventory control health, safety, and environmental assurance
Answers
Sarai is most likely to be involved in logistics and inventory control.
What is logistics and inventory control activity?The Logistics and inventory managers have the role to look after the demand and supply of raw materials and other inventories required to fulfill production needs.
Therefore, the processing of stock, tarcking orders, purchasing inventories, and investigating production output are some of the responsibilities of Sarai as a manager in this departmnet.
Learn more about career fields here:
https://brainly.com/question/27089023
Answer:
logistics and inventory control activity?
Explanation:
1. The formula for continuously compounded interest is A = Pe^rt, where A is the amount of money in the account, P is the initial investment, r is the interest rate, and t is the time in years. Using the formula, determine, to the nearest dollar, the amount in the account after 8 years if $750 is invested at an annual rate of 3%
Answers
Answer:
the amount in the account after 8 years is $954
Explanation:
The computation of the amount in the account after 8 years is shown below"
Given that
The formula for continuously compound interest is
Amount = Principal e^(rate) (time period)
= $750 × e^(0.03)(8)
= $954
Hence, the amount in the account after 8 years is $954
The same is to be considered by applying the above formula
Joji is a 37-year-old married business owner. He runs a dry cleaning service with three locations in Toledo, Ohio. His personal obligations are the home that he owns with his wife, who works for a large financial consulting firm; the healthcare of his family; and his commitment toward saving for his three children's college educations. Joji knows that two of his locations require a large infusion of cash to pay for new and expensive dry cleaning equipment. Although his wife's job provides the family with health insurance, it also places the family in a higher income tax bracket. Joji would certainly like to minimize his taxes. Which of the following forms of business ownership would you suggest for him?A. Joji should consider a limited liability company because he will only be liable for what he has invested in the business. His personal assets will be protected, and he can be taxed like a sole proprietorship.
B. Joji should consider a sole proprietorship due to the fact that it pays its own taxes and it has limited liability.
C. Joji should consider a corporation because he can avoid the negative aspect of limited liability. Corporations are always taxed at a lower rate than individuals.
D. Joji should consider a sole proprietorship due to the fact that it has unlimited liability and it will protect the family's personal assets.
Answers
Answer:
a
Explanation:
For the situation given above where Joji wants to save his taxes, it would be advisable for him to consider incorporation of a limited liability company because he will only be liable for what he has invested in the business. His personal assets will be protected, and he can be taxed like a sole proprietorship. Therefore, the option A holds true.
What is the significance of a limited liability company?A limited liability company can be referred to or considered as a company where the members who hold ownership share in the company have an advantage of protecting their personal liabilities in case of insolvency of the firm.
The members of the limited liability company are joint owners, and also hold the liability for the profits and losses of the firm in the regular functioning. Taxation for members is done in the capacity of a sole proprietor, if there is a single member in the company.
Therefore, the option A holds true and states regarding the significance of a limited liability company.
Learn more about a limited liability company here:
https://brainly.com/question/18567855
#SPJ2
Which career is best described by someone who organizes and tracks merchandise during storage and display?
O Wholesale Buyer
O Marking Clerk
O Purchasing Agent
O Stock Clerk
Answers
The career that is best described by when someone who organizes and tracks merchandise during storage and display is Stock Clerk. Thus option (d) is correct.
Who is Stock Clerk?A stock clerk, also known as a stockroom clerk, is a person who works in a retail or wholesale store, warehouse, or distribution center, responsible for receiving, storing, and distributing merchandise or supplies.
Their job duties may include: Receiving shipments of goods and verifying the accuracy of orders; Unloading, unpacking, and labeling items.
Stock clerks typically work under the supervision of a manager or supervisor and may use various equipment and tools, such as forklifts, hand trucks, and pallet jacks, to move and handle goods.
The Stock Clerk is the person who organizes and tracks merchandise during storage and display.
Learn more about Stock Clerk here:
https://brainly.com/question/17052285
#SPJ6
You should inform the person who is writing your letter of recommendation of
all of the following things except
A. where you are applying and why.
B. when the letter is due.
C. what you would like him or her to write.
D. what type of financial aid you are seeking.
Answers
Answer:
D.what type of financial aid you are seeking
Digby has a ROS of 0.10 (ROS = Net income/Sales). That means: Select:
1) For every $10 of sales there is a profit of 1%.
2)There are sales of $10 for every dollar of profit.
3)There is a 10% profit on each dollar of sales.
4)There are sales of $90 for every dollar of profit.
Answers
Digby has a ROS of 0.10 (ROS = Net income/Sales). That means there is a 10% profit on each dollar of sales. The correct option is option 3. For every dollar of sales, the company earns 10 cents as profit.
What is ROS?
ROS (Return on Sales) is a profit margin ratio that measures how much net profit a business makes for every dollar in revenue. ROS is an essential metric for determining the financial efficiency of a business, as it calculates the percentage of each dollar in sales that is converted into net income.In this case, the ROS is 0.10, which means that for every dollar of sales, Digby earns 10 cents in profit.
To know more about margin , visit
https://brainly.com/question/18143830
#SPJ11
as a joke, jem takes kyla’s business law textbook and hides it so that kyla cannot find it during the week before the exam. as it relates to the initial taking, jem may have committed
Answers
as a joke, jem takes kyla’s business law textbook and hides it so that kyla cannot find it during the week before the exam. as it relates to the initial taking, jem may have committed trespass to personal property.
What is personal property.?
Moving property is referred to as personal property. Personal property can be either material or immaterial. Items that are visible and touchable are referred to as tangibles. Intangible assets, such as a company brand or a copyright, cannot be touched but nevertheless have value to the owner. Apart from real estate, everything you own is referred to as personal property. This includes material possessions like all of your clothes, any jewelry, all of your furniture and household goods, as well as anything else that is mobile and not fixed to a certain place like your home.
Therefore
as a joke, jem takes kyla’s business law textbook and hides it so that kyla cannot find it during the week before the exam. as it relates to the initial taking, jem may have committed trespass to personal property.
To learn more about personal property from the given link:
https://brainly.com/question/536751
#SPJ4
You decide to change careers and have assessed your values, interests, and skills. What should you do next?
Apply for jobs that look interesting.
Enroll in a certification program.
Make a list of potential jobs and research them.
Reach out to a friend to see if their company is hiring.
Answers
Answer:
Make a list of potential jobs and research them
Explanation:
Answer:
Make a list of potential jobs and research them.
Explanation:
With the review of the above case, identify and briefly present four legal cases of your choice grounded or demonstrating the three characteristics of a lease
Answers
The three characteristics of a lease include the transfer of the right of possession of the property from the landlord to the tenant, the tenant's obligation to pay rent to the landlord, and the duration of the lease agreement. Below are four legal cases that demonstrate these characteristics:
1. Black v. Mile High Dairy, Inc.In this case, Black and Mile High Dairy entered into a lease agreement that provided Black with exclusive use of a barn, corral, and a portion of the land. The agreement also stipulated the rental amount and duration of the lease. The court upheld the lease agreement, indicating that it demonstrated the three characteristics of a lease.
2. DuBose v. GreenhawIn DuBose v. Greenhaw, the court determined that a tenant who remained on the premises after the expiration of the lease became a tenant at will. The court held that the tenant's obligation to pay rent continued until either party terminated the lease. This case shows that the duration of the lease is an essential characteristic of a lease agreement.
3. Plantz v. TorelliIn Plantz v. Torelli, the landlord and tenant entered into an oral lease agreement for a term of one year. The tenant was required to pay rent and maintain the property. The court ruled that an oral lease agreement met the three characteristics of a lease, including the transfer of possession, the tenant's obligation to pay rent, and the duration of the lease.
To know more about characteristics visit:
brainly.com/question/31108192
#SPJ11
Short Answer Questions What is a public enterprise? Explain the main features of public enterprises. 1.
Answers
Answer:
A business organization wholly or party owned by the state and controlled through a public authority is called public Enterprise.
Government ownership and control,main motive of service,autonomy,continuity is one feature of public Enterprise.
what is the process of decision-making plan?
Answers
The process of decision-making plan refers to the process that involves making and evaluating each set of interrelated decisions.
What is decision making plan?Decision making plan is when different possible solutions to problems are identified whilst making use of the most feasible course of action.
The decision-making process is essential for any organization hence helps in choosing the best decision to reach the objectives and goals.
Steps to the process of decision-making plan includes :
Identify the decision.Gather relevant information.Identify the alternatives.Analysis of relevant information.Selection of the best alternative.Performance evaluation.Learn more about decision-making plan here : https://brainly.com/question/17622567
What is TRUE about employability skills? A. They are all practical capabilities, like the ability to type. B. They generally stay the same from decade to decade. C. They do not involve human skills or digital fluency. D. They include any abilities you need to succeed at work.
Answers
The correct statement about employability skills is D) They include any abilities you need to succeed at work.
Employability skills are the skills, knowledge, and personal attributes that are essential for success in the workplace. They are the abilities that make a person employable and valuable to an employer. Here are some important points to understand about employability skills:
1. They are practical capabilities: Employability skills encompass a wide range of practical capabilities that are necessary to perform tasks and responsibilities in the workplace.
These skills include technical skills, such as the ability to type, but they also go beyond that.
2. They are not static: Employability skills can change and evolve over time due to advancements in technology, changes in industry demands, and evolving work environments.
Therefore, it is important for individuals to continuously develop and update their employability skills to stay relevant in the job market.
3. They involve human skills and digital fluency: Employability skills encompass both human skills, also known as soft skills, and digital fluency.
Soft skills include communication, teamwork, problem-solving, adaptability, and critical thinking. Digital fluency refers to the ability to effectively use technology and navigate digital platforms.
4. They are essential for success at work: Employability skills are crucial for succeeding in the workplace.
Employers look for candidates who possess these skills as they contribute to productivity, teamwork, and overall job performance.
Examples of employability skills include leadership, time management, customer service, and decision-making.
For more questions on employability skills
https://brainly.com/question/10977067
#SPJ8
Machine has three speed settings, low medium fast the low setting produces 110 units with a 90% quality rating the medium setting produces 120 units with an 80% quality rating in the fast setting produces 140 units with a 70% quality rating if each unit sells for $20 what shutting makes the company the most money in sales win percentage not meeting quality standards cannot be sold
Answers
The low setting makes the company the most money in sales, with a total revenue of $1980
To determine which setting makes the company the most money, we need to calculate the total revenue generated by each setting while taking into account the quality rating. For the low setting, the company produces 110 units with a 90% quality rating, which means that 10% of the units are not sellable. So, the total number of sellable units is 110 x 0.9 = 99 units. The revenue generated from selling these units is 99 x $20 = $1980. For the medium setting, the company produces 120 units with an 80% quality rating, which means that 20% of the units are not sellable. So, the total number of sellable units is 120 x 0.8 = 96 units. The revenue generated from selling these units is 96 x $20 = $1920.
For the fast setting, the company produces 140 units with a 70% quality rating, which means that 30% of the units are not sellable. So, the total number of sellable units is 140 x 0.7 = 98 units. The revenue generated from selling these units is 98 x $20 = $1960.
Therefore, the low setting makes the company the most money in sales, with a total revenue of $1980
To learn more about revenue here:
https://brainly.com/question/8645356
#SPJ1
What has the meat-packing industry done about the health concerns and unsanitary conditions associated with their products?.
Answers
The meat-packing industry done about the health concerns and unsanitary conditions associated with their products because denied any wrongdoing and tried to blame the motives of their critics.
Meat from animals including cattle, pigs, sheep, and other livestock is killed, processed, packaged, and distributed by the meat-packing business. In the sawdust and mud, where the employees had walked and spat untold billions of consumption germs, there would be meat that had spilled out and been exposed to the elements.
The majority of the employees in the business were immigrants, who were subjected to poor pay, long hours, cruel treatment, and occasionally even fatal exploitation. Equally disrespectful to the public's health were meatpacking firms. The famous 1906 book The Jungle by Upton Sinclair startled readers by exposing the actual conditions in meatpacking facilities.
To know more about Meat-Packing Industry here
https://brainly.com/question/9674295
#SPJ4
Evaluate South Africa's efforts in reducing costs to promote supply side policies.
Answers
South Africa's efforts in reducing costs to promote supply side policies has been analyzed by the ways of OECD as follows:
1. Increased education of working-age people- The OECD report shows that South Africa has a problem of skills shortages and the wrong sorts of skills. This means that they lack occupational mobility and are only able to do a narrow range of unskilled tasks.
2. Improved infrastructure, such as transport and communication networks- By improving transport infrastructure, such as roads and railways, the costs of moving goods would be expected to decline, which will decrease the cost of production.
3. The OECD also suggest ‘lowering barriers to entrepreneurship and improving the business environment’- This would involve supply side policies that reduce regulation and bureaucracy, making it easier to start new businesses and reducing costs for on-going businesses.
4. The OECD mention high barriers to entrepreneurship and suggest that reforms are needed to reduce ‘red tape’ for firms - Employment law and trade union involvement may also make it difficult to run a business due to additional costs in making sure that it meets the legal requirements.
What does "costs in business" mean?Cost is the sum of money that a business spends on the development of goods or services. It not include the markup for profit. Cost, in the eyes of a seller, is the sum of money used to create a thing or product.
What does the economic notion of cost entail?Cost is the term used to show the monetary of the goods and services that manufacturers and customers buy. Cost, in a fundamental economic sense, is a measurement of the alternative options passed up when choosing one item or activity over another.
To know more about Costs visit:
https://brainly.com/question/30045916
#SPJ1
why do cellphone services providing firms often charge higher prices to pre paid than those on contract
Answers
Answer: Prepaid cost more because it has more perks than contract, it offers more to the customer's either in data or calls
Explanation:
Prepaid phone services are services that which requires you to pay an upfront for the plans you'll be using in either calling,browsing or texting
While contract has you to choose from monthly plans
Prepaid cost more because it has more perks than contract, it offers more to the customer's either in data or calls
Paula is a computer programmer and is very good at her job. The company Paula works for announces that they will be using brand new software tools. None of the current programmers, including Paula, know how to use these new software tools, but the company would like them to try to learn.
Answers
Answer:
offer to learn the new programming software tools
Explanation:
As per the given situation, the company will use new program software in which Paula works as a computer programmer but he didn't know about the new software tool. So in this case, the company will give the offer to learn the programming software so that the employees can learn and use into the company work.
A project has unequal cash flows, and a manager guesses that the internal rate of return will be 10 percent. If the net present value is positive at 10 percent, then
Group of answer choices
The internal rate of return is exactly 10 percent.
None of these answer choices is correct
The internal rate of return is greater than 10 percent.
The internal rate of return is less than 10 percent.
Answers
The internal rate of return may or may not be exactly 10 percent.
The manager's guess may not be accurate. However, if the net present value is positive at 10 percent, it means that the project is expected to generate a return greater than the cost of capital, and therefore the internal rate of return is expected to be greater than 10 percent. So the correct answer is: The internal rate of return is greater than 10 percent.
If a project has unequal cash flows and a manager guesses that the internal rate of return (IRR) will be 10 percent, and the net present value (NPV) is positive at 10 percent, then the correct answer choice is:
The internal rate of return is greater than 10 percent.
This is because a positive NPV at the guessed IRR of 10% indicates that the actual IRR is higher, as it has yet to reach a point where the NPV becomes zero (which is the point of the IRR).
Learn more about project here,
https://brainly.com/question/27995740
#SPJ11
Why do older kids think they know every thing?
Answers
Answer:
I have no clue tbh lol they think they are the boss of us
Is it ethical for large companies to market small brands as being local, natural, or eco-friendly when they are in fact owned by huge corporations? Or,
as long as companies aren't outright lying, do customers have the responsibility to do their own research on the products they buy?
Answers
Answer:
yes
Explanation:
companies will not yell the truth
It is the responsibility of the customers that they have to do research before making a purchase of the product in order to avoid any fraud or unethical activity with them.
What is a product?A product is referred to as final or finished goods distributed in the market to serve the customers. This product can be both goods and services in which goods are tangible and services are intangible.
When any individual goes to buy any product they have to perform research in order to avoid any misleading activity and they will be able to compare between similar products in reference to price, quality, and quantity.
Customers can not rely totally on shopkeepers about the products as they are here to do business they will not tell the complete truth about the products and services offered.
Therefore, it is better to conduct your own research to avoid fraud or black marketing of products.
Learn more about products, here:
https://brainly.com/question/22852400?
#SPJ2
How can allocative efficiency be achieved?
Answers
Allocative productivity happens when one party doesn't determine the advantages of an item to the detriment of another party. Every individual should trade the ware with someone else for the two players to benefit.
Allocative productivity will happen when the two shoppers and makers have free admittance to data (so no deviated data), permitting them both to pursue the most proficient potential choices in buying and creation.
Allocative proficiency isn't accomplished in light of the fact that cost (what item is worth to shoppers) is above negligible expense (opportunity cost of item). Preferably, result ought to extend to a level where P=MC, yet this will happen just under unadulterated serious circumstances where P = MR.
Learn more about allocative efficiency:
https://brainly.com/question/29451044
#SPJ4
What function does the Securities and Exchange Commission perform?
Answers
The Securities and Exchange Commission (SEC) is an independent regulatory agency in the United States that performs several functions related to the oversight and regulation of the securities industry.
Here are some key functions of the SEC:
1. Protecting investors: The SEC works to protect investors by ensuring that they have access to accurate and reliable information about securities being offered for sale. The SEC requires companies to disclose relevant financial and other information to the public, which helps investors make informed decisions.
2. Maintaining fair and efficient markets: The SEC's role is to foster fair and efficient markets by enforcing regulations that promote transparency, integrity, and equal opportunity for investors. It works to prevent fraudulent and manipulative practices in the securities markets, including insider trading and market manipulation.
3. Facilitating capital formation: The SEC plays a role in facilitating capital formation by regulating the securities offerings made by companies to the public. It reviews and approves registration statements, such as those filed for initial public offerings (IPOs), to ensure compliance with disclosure requirements and investor protection standards.
4. Enforcing securities laws: The SEC has the authority to enforce federal securities laws and regulations. It investigates potential violations of securities laws, such as fraud or misconduct, and takes legal action when necessary to enforce compliance and protect investors.
Overall, the SEC's primary function is to protect investors, maintain fair and efficient markets, facilitate capital formation, enforce securities laws, and regulate securities professionals and entities. By performing these functions, the SEC helps promote confidence in the integrity and stability of the U.S. securities markets.
Learn more about securities markets here:
https://brainly.com/question/28455548
#SPJ11
HELPPPPP PLEASE
1. Unlimited liability is full responsibility for your companies debt.
False
True
2. Limited Liability means that if the business closes that you own, you are required to pay back the debt.
True
False
Answers
Answer: 1.True
2. False
Explanation:I just took the quiz and got it right so you should too lol.
1) help tom to explain to the shareholders of the company the meaning of "free cash flow", its usage and how to use its value to assess a company’s performance.
Answers
Free cash flow" refers to the amount of cash a company generates from its operations that is available for distribution to shareholders, debt repayment, or reinvestment in the business.
It is a crucial financial metric used to assess a company's performance and financial health. When explaining to shareholders, Tom can emphasize that free cash flow represents the company's ability to generate cash beyond its necessary expenses and capital investments. It serves as an indicator of financial strength and flexibility. Shareholders can use free cash flow to evaluate the company's ability to pay dividends, reduce debt, invest in growth opportunities, or withstand economic downturns. By analyzing trends in free cash flow over time.
learn more about amount here:
https://brainly.com/question/30270450
#SPJ11
marcus is applying for a new job. they have asked for copies of his transcripts, a list of personal references, and letters of recommendations from his past employers. he also has to complete a face-to-face interview. which of these is the best indicator of his potential performance at this new job? please choose the correct answer from the following choices, and then select the submit answer button. answer choices the recommendations from his past employers his list of personal references the interview his transcripts
Answers
Marcus is putting in a job application. Face-to-face interview is the best indicator of his potential performance at this new job.
Face-to-face interviews are structured interviews carried out by professional interviewers who utilise a standard interview methodology and a standard set of replies to capture the responses of participants.
With the use of this technique, factual data, consumer opinions, attitudes, preferences, and other information that emerges from the respondent's dialogue may be collected. Face-to-face interviewing enhances the accuracy of the data collected and boosts response rates.
Employee development uses the concept of potential vs. performance to distinguish between the sometimes conflated ideas of performance and potential. Performance describes the regular outcomes that individual displays in their present position, but potential forecasts the chance of future success.
To learn more about interviews, refer
https://brainly.com/question/21786891
#SPJ4
carolina mills purchased $270,000 in supplies this year. the supplies account increased by $21,000 during the year to an ending balance of $73,000. what was supplies expense for carolina mills during the year?
Answers
The supplies expense for Carolina Mills will be equal to $249000.
Supplies expense may be defined as the cost that any industry incur while manufacturing a certain amount of goods or services. It is one of the other expenses incurring within an industry. the other expenses may include Raw material expense, Transportation expense, etc. The formula for calculating Supplies expense will be expressed as
Supplies Expense = Supplies Beginning Balance + Supplies added or purchased during the year - Supplies Ending balance
Now, since the supplies account increased by $21,000 so the supplies beginning balance would be equal to
Supplies beginning balance = $73000 - $21000
Supplies beginning balance = $52000
Now the value of supplies expense will be
Supplies Expense = $52000 + $270000 - $73000
Supplies Expense = $249000
Learn more about Supplies expense at:
brainly.com/question/10968763
#SPJ4
When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
Answers
The total indirect selling expense that cannot be readily traced to individual sales representatives is $50,000.
What is indirect selling expense?Because they don't directly contribute to the creation of a good or the provision of a service, selling expenses are listed as indirect expenses on an organization's income statement. As sales volumes rise or fall, some components can change while others stay the same.
1a Direct Material per unit $7.00
Direct Labor per unit $4.00
Direct Manufacturing cost per unit $11.00
No. of units sold 20,000
Total Direct manufacturing cost $220,000.00
1b Variable manufacturing overhead per unit $1.50
Fixed manufacturing Overhead per unit $5.00
Indirect Manufacturing cost per unit $6.50
No. of units sold 20,000
Total Indirect manufacturing cost $130,000.00
2a Direct Material per unit $7.00
Direct Labor per unit $4.00
Variable manufacturing overhead per unit $1.50
Fixed manufacturing Overhead per unit $5.00
Total Manufacturing cost per unit $17.50
No. of units sold 20,000
Total Direct Costs $350,000.00
3a Sales Commission per unit $1.00
No. of units sold 20,000
Total Sales Commission $20,000.00
Total direct selling expense $40,000.00
3b Total Indirect Selling Expense $50,000.00
To learn more about Indirect selling expenses refer to:
brainly.com/question/29602922
#SPJ4
Complete question:
jameson starts a restaurant with limited funds. he requires a variety of kitchen equipment such as a commercial oven and dishwasher to get started. a kitchen equipment supplier understands the financial situation and allows jameson to receive the items immediately if he agrees to pay for the items within 30 days. in this scenario, the type of funding jameson has obtained can be regarded as a
Answers
In this scenario, the type of funding Jameson has obtained for his restaurant can be regarded as trade credit.
Trade credit is a short-term financing option that allows businesses to purchase items and pay for them within a specified time period, such as 30 days in this case. It is commonly used by businesses to help manage their cash flow and obtain necessary equipment or inventory without having to pay upfront.
Trade credit refers to the practice of purchasing goods or services from a supplier and deferring payment for a specified period. It is a common form of short-term financing in which the supplier extends credit to the buyer, allowing them to receive the goods or services immediately and pay for them at a later date.
Trade credit terms typically specify the duration of the credit period, which can range from a few days to several months. The terms may also include any applicable discounts for early payment. For example, a supplier may offer a 2% discount if the buyer pays within 10 days, or the full payment may be due within 30 days.
Learn more about trade credit here: https://brainly.com/question/22436895
#SPJ11
3. Explain and give examples of the adverse selection, moral hazard, and principal-agent problems. Why are these issues important when we discuss health care? What can be done to off-set these problem
Answers
Moral hazard causes an inefficient distribution of resources, which makes it an issue for the economy. It does so because one party is placing a greater burden on another party, which, if done on a macro scale, would have a substantial negative impact on an economy.
An illustration of a moral hazard is the possibility that a worker covered by their employer's dental insurance plan may be less concerned with maintaining good oral hygiene, as opposed to a person who intentionally leads a high-risk lifestyle and is making a poor decision by purchasing a life insurance policy. The principal-agent issue in moral hazard is caused by the principal's incapacity to directly oversee the agent's behaviour.
To learn more about economy, click here.
https://brainly.com/question/30131108
#SPJ4