In the long run, all production factors are___________
Variable
Fixed
Semi-variable
Semi-fixed
Correct answer is A
No explanation has been provided for this answer.
The type of business finance that entitles the holder to a fixed rate of dividend is______________
Bank loan
Debenture
Preferred stock
Semi-fixed
Correct answer is C
No explanation has been provided for this answer.
Deductive reasoning
Positive reasoning
Normative reasoning
Inductive reasoning
Correct answer is D
Inductive reasoning is a type of logical thinking that involves forming generalizations based on specific incidents you've experienced, observations you've made, or facts you know to be true or false.
For a fact, we all know that privatization of public enterprises leads to efficiency in those enterprises, therefore the statement above ''The privatization of public enterprises will lead to the efficient management of resources in the economy'' for fact, has been proven to be true from experience and observations.
Which of the following is correct?
Traditional budgeting focuses on goals and objectives
Zero based budgeting produces a single level of appropriation for an activity
Traditional budgeting starts with last year’s funding appropriation
Zero based budgeting does not systematically consider alternatives to current operations
Correct answer is C
Zero-Based budgeting and traditional budgeting are the two predominantly used budgeting techniques. Zero-based budgeting is a budgeting method where current year’s budget is prepared from the scratch i.e. taking the base as zero. The old and the new activities of the business are ranked according to their importance and based on that, resources are allocated to each activity without considering the past budgets or achievements.
Traditional budgeting is a method of preparation of the budget in which the last year’s budget is taken as the base. Current year’s budget is prepared by making changes to previous year’s budget by adjusting the expenses based on the inflation rate, consumer demand, market situation etc.
In case of zero-based budgeting, it is easy to eliminate an existing item or add a new item to the current budget, as zero-based budgeting is a creation of entirely new budget from the ground. In other words, zero-based budgeting is more flexible in nature.
Localization of industry is encouraged because of ________
Low interest charges on loans
Improvements in infrastructure
Low foreign exchange rate
High standard of living
Correct answer is D
This is one of the reasons government participates in the location of industries. When such industries are located, goods are made available and the people get employment and earn income hence, their standard of living will be improved.