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26. How can a technology entrepreneur use a vesting schedule to motivate employees?




27. What are the responsibilities of a corporation’s board of directors? How can a technology entrepreneur ensure compliance with statutes governing the corporate entity?




28. Explain the difference between common and preferred stock. What are some potential features that can be added to preferred stock offerings?




29. Explain what it means for a new technology venture to be “overcapitalized.” What are the disadvantages of this?




30. Identify the type of investor who is most likely to invest in pre-start-up technology ventures. Explain how the technology entrepreneur should approach and work with these investors.




21. Define the significance of making a business a “limited liability entity.”




22. Who is responsible for the wrongful acts of a businesses employee? Under what circumstances would be employee be personally liable? Under what circumstances would the owners of the business be personally liable?




23. 5. How does an entrepreneur determine which form of entity to adopt for his or her business?




24. Under what circumstances is it most beneficial for a company to self-fund or obtain debt financing to reach a particular milestone?




25. Describe what is meant by the term “Employee Stock Option plan.” How can an entrepreneur use such a plan to build a new venture?





16. Name three different modes of entry for a technology venture that is contemplating entering a foreign market. What factors should the entrepreneur consider when making this decision?




17. Under what operating system would a technology venture establish standard operating procedures? Why would a venture need to develop such procedures?




18. What is meant by the term “business model”?




19. What are the risks of operating a business as a sole proprietorship?




20. What are the advantages associated with operating a technology venture as a limited liability company?




11. Explain why a “capital-intensive” industry can be difficult to enter for an entrepreneur. What might the entrepreneur do to overcome the entry barriers to a capital-intensive industry?




12. How can a technology company recruit and retain valued knowledge workers? Give an example of a company that excels in this regard. What does it do that makes it successful?




13. What are CEOs of global companies saying about the pace of change in the global economy? How can a technology venture deal with an accelerating pace of change?




14. How did Microsoft adjust its strategy in the Chinese market? What mistakes did it make in the early days in that market?




15. Explain what is meant by the term “sustainable competitive advantage.” What should a technology venture do in the modern global economy to develop this?




1. What are the two primary elements of a going concern?






2. What does it mean to say that a business is a purposeful activity?






3. How does a business determine whether or not its products and services are valuable? Define the relationship between price and quality, and their effects on value.






4. Explain the role of a value proposition for a business. What is the value proposition for YouTube?






5. Describe how a capitalist economy differs from a socialist economy.







Choose the best answer to each question.

 

21. Estimated Gini coefficients from actual international data typically lie between (  A ) for countries of highly unequal income distributions, and for countries with relatively equal distributions, they lie between (  B  ).

(a) A= 0.50-0.70, B = 0.20-0.35    (b) A= 0.80-1.00, B = 0.50-0.70

(c) A= 0.20-0.35, B = 0.35-0.50    (d) A= 0.40-0.60, B = 0.60-0.80

 

22. Which of the following is false regarding measures of income distribution? 

(a) Factor share distribution of income offers no information about how income is distributed among individuals.

(b) Measures of size distribution of income, such as the Gini coefficient, is not affected by the size of population.

(c) If Gini coefficient is 0.3, income distribution is considered highly unequal.    

(d) For developing countries, income growth based on Ahluwalla-Chenery 

 welfare index will be generally lower than GNI growth rate.         

 


The Efficient Market Hypothesis (EMH) is a theory that explores the relationship between the availability of information and asset prices. It argues that all available information is already reflected in the price of share and therefore, it is impossible to beat the market over the long-term. Briefly explain the sub-hypotheses in EMH.


The data given below relate to Frempomaa Ltd. for the year ended 31/12/2000:

Fixed factory overhead cost was GHC160,000

Production units 1,000 units

Sales 800 units at GHC500

Administration cost was GHC40,000

Variable selling and distribution overheads GHC80

Direct labour GHC70 per unit

Direct material GHC50 per unit

Prepare the profit and loss account using each of the following cost techniques:

(a) Marginal Costing

(b) Absorption Costing



For each if the following events, describe the likely effect on the country’s production possibilities boundary (PPB). Start with a PPB like the one below and draw the likely change.


a. Suppose the country has a 10-year civil war that destroys much of its infrastructure.


Use the 3 point curve to draw a new production possibilities boundary on the graph reflecting the change in the infrastructure. Properly label this line. Place end points one on horizontal and one on vertical axes.


Finance has gained great momentum and improvement over given period since 1960s.The revolution has caused a lot of development in the field of finance and thw contribution from various scholars have also been recognized. Discuss various revolution steps in the field of finance and recognizing various philosophers (10mks)

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