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What type of firm is likely to have the greatest number of owners?
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A firm's opportunity costs of using resources provided by the firm's owners are called what?
equity financing
Which firm is more likely to have an elastic supply?
A firm making underwear will need a supply of elastic.
In the long run the firm will likely if it decides to keep the amount of output at its initial level?
Shutdown
Can the firm's financing decisions affect its profitability?
Yes, a firm's financing decisions can play a major role in determining its profitability. A firm can opt for different methods of financing, i.e. raising money for business needs. For example, finance may be required to invest in a building or machinery or materials. Finance may also be needed for ongoing business expenses like salaries or rent or telecom costs. There are different ways to arrange for these funds for the firm, and funds cost money. If the firm borrows the funds from a bank, then it incurs an expenditure which is the interest charged by the bank. This expense is reduced from profit, so profitability reduces. Another way of raising funds is to sell shares, i.e. the equity of the company. The owners of the shares then become part owners of the company, and can also exercise management control over the company. In this way, distribution of equity can also affect profitability.
When the firm attains minimum average variable cost how many units of labor is it using?
When a firm attains minimum average variable cost, the number of units of labor it is using depends on the average product.
Which organizational form best enables the owners of the firm to monitor the actions of other owners of the same firm?
The organizational form which best enables the owners of the firm to monitor the actions of other owners of the same firm is a general partnership. All the liabilities of the partners are unlimited.
The shareholder wealth maximization goal state that management should maximize the percentage value of the future returns to the owners of the firm?
owners of the firm
A firm's opportunity costs of using resources provided by the firm's owners are called what?
equity financing
Who are the stakeholders in a firm?
stakeholders is a firm are the customers, staff, bank, suppliers, owners, bank, local authority.
What is a business firm with many owners who each owns shares called?
A business with many owners with each owning shares of the firm is called a corporation. Corporations can be a profit or not for profit business.
A business firm with many owners who each own shares of the company is a?
Corporation
Which firm is more likely to have an elastic supply?
A firm making underwear will need a supply of elastic.
The owners of a firm face unlimited liability for the firms debt in?
Both a proprietorship and a partnership.
Advantages of owners savings?
Should be available to the firm quickly and no interest should be paid.
Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?
Reducing current assets, increasing current liabilities, and reducing long-term debt.
What is equisearch inc?
Its an Asset recovery firm- They deal with getting unclaimed stocks back to the owners.
What is free cash flows?
Cash resources available for the owners of a firm are known as free cash flows.
