Introduction of the term Control Principle
Give a brief introduction of the term Control Principle?
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Control Principle : this principle deals with the capital structure that is keeping the controlling place of owners. Preference shareholders possesses no voting rights and do not disturb places.
Briefly explain the term Operating Leverage?
Illustrations of activities which generate negative externalities would not comprise: (w) burning coal that results in acid rain. (x) smoking a cigar at the opera. (y) killing fish by dumping sewage into a river. (z) being inoculated against a contagi
Not between exact activities for government to undertake, according to Adam Smith, would be for the government to: (1) maintain public institutions and public works. (2) protect society by invasion. (3) serves as a medium for law and justice. (4) regu
What happens to the demand curve when each of these determinants changes?
Industries that are described as "contestable": (w) will experience long-run economic profits equal to zero. (x) are difficult for firms to enter, but not to exit. (y) are difficult for firms to exit, but not to enter. (z) will charge prices greater t
What are the Causes and theories of inflation?
Difference between normal goods and inferior goods. Give illustration.
Describe briefly Low financial leverage, low operating leverage?
Write down the drawbacks of capital budgeting?
Speculators decrease price volatility through, in effect, changing demand curves: (w) out at low prices, and shifting supply curves out at high prices. (x) out at low prices, and shifting supply curves within at low p
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