Components of the Master Budget Are the Operating Budget,the Capital

question 94

True/False

Components of the master budget are the operating budget,the capital expenditures budget,and the financial budget.

Describe the effects of market demand changes on the price and output of a perfectly competitive industry in the short and long run.

Identify and explain the role of the industry supply curve in the context of perfect competition.

Analyze the conditions for long-run equilibrium in a perfectly competitive market, including the zero economic profit condition.

Explain the role of entry and exit of firms in achieving long-run equilibrium in a perfectly competitive market.

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Definitions:

Bad Debt Risk

The risk that money owed to a company by debtors will not be paid and thus become a bad debt.

Compensating Balance

A minimum account balance that a borrower must maintain as part of a condition for obtaining a loan.

Line of Credit

A flexible loan from a bank or financial institution that allows a borrower to draw and use funds up to a designated limit.

Field Warehouse

A storage facility that is used to store goods that are under the control of a financing company until the loan secured by those goods is repaid.