Calls increase in value when the underlying security is going up, and they decrease in value when the underlying security declines in price. Puts increase in value when the underlying security is going down and decrease in value when it is going up. There are risks associated with calls and puts. These options are more risky than owning stock because there is a greater chance of losing your investment quickly. The risk increases as these options get closer to their expiration date.
In the first half of the year earnings for the Resources division have increased, due to higher export coal prices. * Operating in many different geographical areas * Being dependent on customers and supplier chains in each local and overseas areas, as well as different geographical areas of operations. This increases inherent risk due to difficulty to control operation in different locations as well as the climate changes in regards to their products. II. Unusual pressure on management The management is under unusual pressure to perform well and increase returns for shareholders in order to gain more remuneration: * Objective to provide a satisfactory return to shareholders, this would increase inherent risk due to pressure placed on management in order to meet budgets or forecasts * Remuneration plans * Also the directors have significant remuneration plans – they are awarded a lot of
According to Keynes, why might deflation create problems for an economy? ▪ In expectation of increased spending, too many entrepreneurs would begin businesses and most would fail. ▪ The cost of repricing goods would increase costs, and therefore reduce profits, for businesses and they would cut production. ▪ People would drop out of unions because unions would become ineffective at keeping wages of members high. ▪ Consumers might expect prices to fall further and cut back consumption now.
If there is a large increase in some of the figures of the expenditure, it could mean that there would be either a large decrease in the profits made by the company or that the company’s loss figure has increased suddenly. If there was a decrease on some of the figures in the expenditure, then this could mean that there has been a sudden increase in the profit they are making or the loss figure has decreased suddenly. Increasing VAT If there are increasing prices of VAT, then the company will need to make sure that this doesn’t affect the company to bad. The
Recession- The recession is an opposite of boom stage. The unemployment increase, most of firms are losing confidence and stops invest or expand. They may change their planning and started to survive. The customers are likely to save money then spend and the percentages of loans are high and may increase. Individuals are losing jobs and the government have to spend more money of benefits.
Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers. Availability and cost of credit: People spend more when there is high demand for goods/services. In this case etisalat has the advantage of expanding their business. Many people will want to purchase numbers and different offers provided. A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers.
It creates a happiness and builds something to work towards. However, some parents chase after goals in which they just are not suited for. For instance, in “Death Of A Salesman“, Willy, the father of Biff and Happy, creates a false sense of a positive outlook on searching for a career and what it takes by saying that, “The man who makes an appearance in the business world, the man who creates personal interest, is the man who gets ahead.” (Miller Line 625-627). In fact, these ideas are the exact opposite of what it takes to be successful in the business world. Willy thinks that if he were to tell the truth to his kids, they wouldn’t respect him for not being as successful as he claims to be.
Additionally, the continuously increasing steel prices leading to higher production costs and impacting product’s margin. Other players initiated price war (price differential of 5 to 10 % of Fortis discounted prices) while Fortis refused to continuously cut its prices, which caused Fortis to lose market share to its competitors. Increasing price sensitiveness of Fortis customers, decreasing market share coupled with low production utilization (70%) is increasing more and more pressure on Fortis to lower prices. In addition to its standard “4-8-14” discount, Fortis can apply price-flex strategy in order to selectively meet lower competitor prices. Question 3) Fortis marketing strategy focuses on value-added service to customers.
There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
And try to stay invisible “He is a great father who has been struggling his life to earn some good money and wants best for his son called Luis Galindo. Carlos Galindo has presented himself as a great father. Like other parents, he wants to give best for his son. Carrie Rickey says, “ Demian Bichir in a performance as modest and as epic as the movie he’s in.” He wants to give his son all the luxurious and facilities that he never got in his whole life. Carlos was always concerned about his son.