The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
Being able to track sales compared to the previous years’ numbers is a valuable tool in being able to track business. They use this information to forecast on where they think the business will be heading in the next week, month, or year. If the debt percent gets to high then they need to adjust the amount of liabilities that they have to bring that number down. Knowing the times interest earned ratio allows the managers to know at what percent the company is earning interest on its net income. Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders..
LAST NAME: Merkozy Matrikelnummer: First Name: Angelus FLATLANDIA Country Factsheet April 2012 Executive Summary: (maximum 125 words) Flatland is a very open economy and characterized by a high share of industrial production in total value added (= basic characteristics). The country has achieved price stability and high growth und thus a substantial rise in living standards in the past decade (= something on long-term development). Flatland has, however, been seriously affected by the financial crises leading to a GDP growth of -8% (= short-run development). Fiscal and monetary policy reacted strongly to allow a speedy recovery. Restructuring of the financial sector is underway in which temporary nationalization of the banking
Because these loans are IOUs, they can be offset by printing more money. This gives central banks an unlimited supply of money. Overdoing this will lead to inflation that hurts the economy (Colander, 2010, p. 406). One problem in government accounting is how they classify debt and expenditures. Accounting addresses several ways a business may classify an expenditure and depreciation over time.
When the demand for U.S. dollars increases, the value of the dollar will increase or appreciate (Stone 2008, pp. 685). As a result, U.S. products become more expensive for foriegners causing a reduction in exports and increasing imports. This not only effects the U.S. economy, but also affects the economies in other countries. Monetary policies influence and are influenced by international developments, including exchange rates, and based on these market conditions the U.S. government can make strategic changes to these policies to maintain the country’s economic stability (full employment, stable growth and price stability).
of Reagan’s tenure, the budget deficit was $141b. The federal government being able to collect more revenue as an ultimate result of the lowered taxes is a main goal of supply-side economics. In the 1980s, federal revenue grew from If measured as a share of GDP, By the
Decreasing the interest rate effectively increases consumer and businesses consumption. Lower interest rates also increase investments and net exports (Hubbard, 868). These increases push true GDP back in line with potential GDP and, as a result, production increases. This increase in production also increases the need for workers, ultimately increasing employment. Conclusion The Federal Reserve is a very powerful entity and has a large amount of influence on how our nation’s economy performs.
When Clinton raised the minimum wage it stimulated a slumping economy and had increases in the job market. Republicans and Democrats are at either end of the spectrum on how to increase consumer spending and the American economy in this recovery
Investment projects, via the multiplier effect should result in an increase in the GDP of the economy; However in order to undertake investment, there must a high savings ratio must be obtained as it is essential for the accumulation of capital. Labour plays a critical role in achieving economic growth. The higher the number of workers there is in an economy should lead to economic growth. If there are more people working and unemployment levels are relatively low, then there is likely to be the achievement of economic growth as human resources
The United States of America is the world’s leading g economy. The country’s economy is also ranked as the fastest growing in the world courtesy of economic reforms introduced in the country in the year 1978. It has risen also to become the second largest importer of goods, and it is also recognized as the largest exporter of goods. China’s huge population has been quite instrumental in growing its economy. The population provides the much needed labor force that has propelled the country’s industrial and agricultural sector to great heights of productivity.