If a business is operating correctly then it should generate cash surplus. The faster this company expands the more cash it will need for working capital. There are two elements in the business cycle that absorb cash. Receivables and inventory. One specific method of increasing working capital is related to improving internal controls such as optimizing the systems used for maintaining accounts receivables.
As the capital is put back into the economy the demand for supplies will go up. As the demand rises the amount of supplies will also rise increasing the need for employees and in turn putting more available spending capital in the hands of the buyers. By increasing government spending there is more money being put back into the pockets of the people. This return in turn frees up capital citizens are able to put back into goods and services increasing demand. Lowering taxes can also leave money in citizen’s pockets but it also takes away from the amount of money the government is able to use to stimulate the economy by spending.
(p. 191) ______________ theory is typically associated with greater profits. a. Signaling b. Compensating wage differentials C. Efficiency wage d. Human capital 4. (p. 193) Implications of _______________ theory are that pay level affects an employer's ability to recruit.
The researcher conducting this study believes that employees are more productive when they have higher levels of self-esteem. To what extent does the data in Figure 1 support the researcher’s belief? Explain. The data in Figure 1 supports the researcher's belief, that employees are more productive when they have higher levels of self-esteem. It does so, by showing that the higher the employee's self-esteem the more profit is made for the company which can also show that employees are more productive.
Going back to the selling to customers with a higher credit risk, while they say that they will review the aging of the accounts receivable on a daily basis, is that possible for Loren to do on top of all the other work that needs to be done? Or in this case would they need to hire another person to take some of Loren’s workload which would in the end cost even more money for the company. In each of these situations they are talking about spending more money to keep away from the risks that are mentioned, but if they get to the point where they are losing money because of the risk and also because of the extra position that they added, they could be in really big trouble
This greater demand leads to increases in both output and prices. The degree to which higher demand increases output and prices depend, in turn, on the state of the business cycle. If the economy is in recession, with unused productive capacity and unemployed workers, then increases in demand will lead mostly to more output without changing the price level. If the economy is at full employment, by contrast, a fiscal expansion will have more effect on prices and less impact on total output. According to the MPR, the unemployment rate was projected to continue to decline toward its longer-run normal level over the projection period (Monetary Policy Report,
The profit percentage of assets varies by industry, but in general, the higher the ROA the better. We can see a good trend over years in the company. Comments: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. The formula for ROE is: ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital.
If the minimum wage increases too much, then it could even force some smaller firms out of business. Then even more people will be out of work. On the other hand, better-paid employees could feel more motivation to increase their productivity. If productivity is high enough that, in order to keep up supply, it might need to hire even more employees. In this case, raising the minimum wage has increased employment.
By raising the minimum wage it means having to lay people off to be able to afford paying the remaining workers the higher salary. This eventually will eventually add on to the rate of unemployment in the eyes of someone who opposes it. There would be a lot of benefits that come with increasing the minimum wage for the workers. Someone working forty hours a week at minimum wage will bring in an average of 15,000 dollars a year which would not be sufficient enough to provide the necessities for only two people (Source two). If it is increased it will have a positive effect on employees in their personal life.
Second, a high-wage economy can induce a regime of rapid technical change, and firms faced with high wages are forced to employ more advanced equipment and eliminate inefficiency or leave the industry, which results in a more productive society because companies are forced to embrace new technologies and processes. In the end, these new processes are disseminated throughout the economy. Third, the minimum wage is one among a number of factors that has the capacity to equalize bargaining power in labor markets, and enables people to 'earn a living,' which is an elementary component of human dignity and social justice.” Since the initial passage of the Fair Labor Standards Act of 1938, economists have generally been opposed to the minimum wage, and today, this consensus is the same as most introductory textbooks will indicate (Prasch). Prasch notes that over the last half century, “it has become an article of faith that any floor or ceiling placed upon a supposedly autonomous and self-ordering 'free market' will lead to a substantial misallocation of resources' (Prasch). Regarding the minimum wage, market intervention is thought to