Stability Can Be Viewed in Two Ways⎯as the Ability of a Given

question 47

True/False

Stability can be viewed in two ways⎯as the ability of a given government to stay in power in the country and as the permanence of government policies toward business.A country that is stable in both respects is preferable because managers have a higher probability of successfully predicting how government will affect their businesses.

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Definitions:

Implicit Costs

are indirect expenses that do not involve a direct payment of money but represent a loss of opportunity to use resources elsewhere.

Normal Rate

A term that can refer to the typical or standard interest rate charged by lenders or expected returns on investments under normal conditions.

Operating Profit

The profit earned from a firm's normal core business operations, excluding deductions of interest and tax.

Total Revenue

The overall amount of money generated from sales of goods or services before any expenses are subtracted.