The Basic Factors That Determine How a Business Is Financed

question 92

True/False

The basic factors that determine how a business is financed are restricted to the business's past economic performance, the nature of its assets, and the personal preferences of owner(s) with respect to the marketing mix.

Analyze the effects of input prices on the supply of goods.

Examine how changes in production technology affect market supply.

Know the impact of supply shifts on market outcomes.

Interpret graphical representations of changes in supply and quantity supplied.

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Definitions:

Lost Profits

Damages claimed in a lawsuit representing the profits one would have made but for another party's wrongful act.

Speculative

Involving a high risk of loss but also offering the potential for substantial gains, often based on future expectations rather than current realities.

Insolvent

Being insolvent means lacking the financial ability to pay debts when they are due, which can lead to bankruptcy or other legal financial proceedings.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, meant to harmonize the law of sales and other commercial transactions.