True, if the purchaser in an alleged land sale contract has made any payments toward the purchase price and has either started to improve the property permanently or has taken other steps to do so.
What happens to the property of a given good when it is sold pursuant to a contract?Upon execution of a contract that unconditionally stipulates the sale of specific commodities in a deliverable state, ownership of the items belongs to the buyer; it is immaterial whether the price is paid after the agreed-upon date or whether the goods are delivered after the agreed-upon date.
What kind of subject matter could the Sale of Goods Act sale contract cover?(1) Things covered by a contract of sale may either be present products that the seller owns or possesses, or they may be goods that will be delivered in the future. (2) A contract for the sale of goods may be subject to a circumstance that may or may not take place prior to the seller's capacity to make the purchase.
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ceo, larry page, created a work culture that seeks employee input and provides plentiful perks, transparency, and flexibility. this is most representative of which management function?
most representative of management function is Planning and decision making, Organizing, Leading, and Controlling.
Which position are managers assuming when they speak on behalf of their company?Managers serve as the organization's spokesperson and act in that capacity.You are in charge of communicating information about your organization's objectives to those outside of it in this capacity.
Which managerial level, if any, do you anticipate conceptual talents to be most crucial?For top managers, conceptual skills are essential. For mid-level managers, they are less important, and for first-level managers, they are not necessary.The significance of these talents will increase as we move up the administrative ladder.
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developing new ways to hire and train employees and paying them higher wages can result in which of the following benefits? a. it can result in better communication with management. b. it can result in fewer employees being needed. c. it can result in better retention of employees. d. it can result in a reduced emphasis on global mindset.
C) it can result in better retention of employees. Developing new ways to hire and train employees and paying them higher wages can result in better retention of employees.
Developing new ways to hire and train employees and paying them higher wages can result in various benefits, one of which is better retention of employees. When employees feel valued and supported, they are more likely to be engaged and motivated in their work. Higher wages can also increase job satisfaction and reduce financial stress, making employees less likely to leave the organization. Investing in the development and well-being of employees can also help to build a positive and supportive work environment, leading to improved morale and stronger relationships between employees and management.
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farmer john can produce as much corn as he wants at the going price of $48 per bushel. at his current production level, the marginal cost is $18. what should the company do?
Since Price (MR) is greater than Marginal Cost, the farmer must continue to produce until MR Equals MC.
How can farmer decide to continue to produce?Maximum profit is the output at which MC and MR are equal.
The firm will enhance its profit by employing more variable input to generate more output as long as the income from creating another unit of output (MR) exceeds the cost of producing that unit of output (MC).The additional money that results from raising the quantity is known as the marginal revenue. The additional revenue "at the margin" is another name for this. Profit is therefore maximized when marginal cost equals marginal revenue, or when marginal profit is equal to zero.
So, Since Price (MR) is greater than Marginal Cost, the farmer must continue to produce until MR Equals MC.
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Farmer John should continue to produce corn as long as the marginal cost is less than the going price. In this case, the marginal cost of $18 is less than the going price of $48.
What is marginal cost ?The price of manufacturing one extra unit of a good is referred to as the marginal cost. The marginal cost of $18 in this instance means that Farmer John must spend $18 in order to produce one additional bushel of maize. Each additional unit of maize produced by Farmer John results in a profit if the marginal cost is lower than the market price.Farmer John would no longer be able to grow more maize since he would be losing money on every extra unit produced if the marginal cost were higher than the market price.In conclusion, Farmer John should keep producing corn as long as the marginal cost is lower than the market price.
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how did economic issues factor into the events surrounding the leo frank case?
Economic concerns play a role with in Leo Frank case's events because poor Georgians despised northern businessmen who moved there in order to prosper.
What is economic explain?Economics is, in fact, a study the scarcity and how it impacts the utilisation of resources, the creation of goods and services, the growth of production and welfare through time, as well as a large array of other complex issues that are very significant to society.
What is an economic example?Example: Farmers lower the price of both the crop when corn production rises in order to sell more of their harvest. The amount of maize required to feed the nation's population, as well as other produce, must be reduced if the production is too great.
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the decade of the holocaust and the devastation of world war ii prompted the postmodern shift from an industrial age dominated by farming and manufacturing to an information age, t/f?
False. The devastation of World War II and the Holocaust were significant events that had a profound impact on the world, but they did not prompt the postmodern shift from an industrial age to an information age.
Advances in technology, communication, and transportation were key factors in the postmodern transition from the industrial to the information ages. The emergence of computers, the internet, and mobile technology has fundamentally changed how we work, communicate, and access information. As a result, knowledge-based work is now more valued than ever before, and the importance of information in promoting economic growth and prosperity is becoming increasingly apparent.
Though they undoubtedly had a significant impact on the globe and influenced the political, economic, and social landscape of the 20th century, World War II and the Holocaust did not directly contribute to the emergence of the information age. Instead, a complex interaction of economic, cultural, and technical factors—factors that are still changing today—led to the postmodern revolution.
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find the cost of goods manufactured. find the direct materials used. find the direct materials purchases. find the units sold.
COGS is calculated as Beginning Finished Goods Inventory - Ending Finished Goods Inventory - Cost of Goods Manufactured.
How do you calculate the direct material cost of the goods sold?COGS equals beginning inventory plus purchases minus final inventory. The value of the product inventory you started with is referred to as beginning inventory. Typically, it matches the number listed in the most recent ending inventory.
How is the cost of items manufactured per unit determined?To figure out a product's per-unit cost, you must first compute the overall manufacturing cost of all the goods produced within the specified time. The estimated value should then be divided by the quantity of goods. Your final result is the manufacturing cost for one unit.
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employee reception of the token economy at anna state hospital in the 1950s is best characterized as
Employee reception of the token economy at Anna State Hospital is Reluctance and resistant.
In the 1950s at Anna State Hospital the employee reception of the token economy is characterized as reluctance and resistance. Resistance employees are employees that don't like change and don't agree with the feedback. They usually react negatively and disagree with the change. Reluctance employees are employees that exhibit behaviors that undermine its mission, goals, and objectives. In the 1950s these two characteristics of employee reception of the token economy existed at Anna State Hospital. Employee reception is an employee managing the front desk of an organization.Learn more about employment at: https://brainly.com/question/1361941
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fulfillment is the process or business of handling and executing customer orders, such as packing, shipping, or processing checks. also known as: order-to-cash process group startstrue or falsetrue, unselectedfalse, unselected
The given statement is true.
Fulfillment is the process or business of handling and executing customer orders, such as packing, shipping, or processing checks. also known as: order-to-cash process - True.
The process of receiving and processing client orders and delivering the acquired goods or services to the customers is referred to as fulfillment in the business world. It includes a variety of tasks like accepting orders, packing packages, shipping packages, managing payment processing, and offering customer care.
One of the most important components of supply chain management is the fulfillment process, commonly referred to as the order-to-cash process.
An example of fulfillment in business would be an e-commerce company receiving an order for a product from a customer through its website. Once the order is received, the company's fulfillment process would begin.
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What is the term for a loan in which the payments include interest as well as loan principal?
The term for a loan in which the payments include interest as well as loan principal is Amortized loan.
An amortized loan is referred as a type of loan that requires the borrower to make scheduled, periodic payments which is applied to both the principal and interest. In amortized loan payment, it first pays off the interest expense of the period and any remaining amount is put towards reducing the principal amount. As the interest portion of the payments for an amortization loan decreases, the principal portion increases.
The example an amortized loan of is- mortgages, car loans, and student loans.
Amortization loans helps in providing small businesses an added advantage of having a clear set of payment amount every time which includes both interest and principal.
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the self regulatory organizations (sros) are: a private companies b government sponsored enterprises c membership organizations d publicly traded companies
membership organizations. so the option C is the correct answer of the given question.
The self-regulatory organisations are membership organisations. Be aware that the self-regulatory organisations are no longer connected to the actual trading markets. For instance, the stock exchanges are NYSE and NASDAQ, while the SRO is FINRA. Both of these exchanges are listed on open marketplaces. The SRO is a membership-based organisation that develops and enforces rules for members, conducts compliance audits of members, and collects dues from members to support these expenses. There are many different kinds of legal entities, such as corporations, governments, non-governmental organisations, political organisations, international organisations, military forces, charities, for-profit firms, partnerships, cooperatives, and educational institutions, to name a few.
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the overall management process that strives to identify corporate purpose and to position a firm relative to its market environment is
The overall management process that strives to identify corporate purpose and to position a firm relative to its market environment is Strategic management.
Which four strategic management processes are there?Formulation, execution, evaluation, and revision are the four stages of strategic management.
How is the process of strategic management defined?A business implements a strategic management approach as part of a continual culture of appraisal in an effort to outperform rivals. Despite how simple it may seem, this is a challenging process that includes developing the organization's overall vision for both current and future goals.
What exactly are the five strategic management steps?Goal-setting, analysis, developing a strategy, putting it into action, and monitoring it are the five stages of the process.
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When a merchandising company sells inventory it willA. recognize only an expense.B. recognize only revenue.C. recognize revenue and expense.D. not recognize revenue or expense.
A company that sells inventory will only record revenue in its financial statements.
What do you mean by inventory?Resources refer to all the products, services, and supplies that a business keeps on hand with the intention of reselling them for a profit. Example: When a paper supplier utilises a vehicle to deliver newspapers to customers, really just magazine will be counted as inventory. The vehicle will be regarded as an asset.
What is difference between stock and inventory?In conclusion, stock refers to the quantity of finished items that are readily accessible for purchase, and inventory refers to both finished products and the parts that go into making a finished good. In other words, all inventory is stock, but not all stock is inventory.
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jolene is graduating from high school in may. she received from offer this which statements about the offer are true? check all that apply.
The true statements are:
A: The total cost per year is $22,300.
D: Financial aid will cover $11,000 for each year of college with no need to repay.
E: She could use money from savings or parental contributions to pay the remaining $6,300 each year.
F: She could use a student loan to pay the remaining $6,300 each year.
The concept being discussed is the cost of attending a university and the financial aid available to help cover those costs. The total cost of tuition, fees, room and board is $22,300 per year. Financial aid of $11,000 is being offered to cover part of the cost with no repayment required. The remaining $6,300 per year can be covered through personal savings, parental contributions, or student loans.
"
Complete question
Jolene is graduating from high school in May. She received this offer from a university. Financial Analysis for University Costs per Year Financial Aid Package per Year Tuition & Fees Scholarships & Grants $9,800 $11,000 Room & Board Work-Study $12,500 $5,000 Which statements about the offer are true? Check all that apply.
A: The total cost per year is $22,300.
B: She will need to repay $16,000 for each year of college.
C: Financial aid will cover $16,000 for each year of college with no need to repay.
D: Financial aid will cover $11,000 for each year of college with no need to repay.
E: She could use money from savings or parental contributions to pay the remaining $6,300 each year.
F: She could use a student loan to pay the remaining $6,300 each year.
"
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which of the following is a desirable property for money to have? group of answer choices durability variability portability abundance
Durability, portability, and scarcity are desirable properties for money to have.
Durability refers to the ability of money to withstand wear and tear and retain its value over time. This is important so that money can be used repeatedly without losing its value.
Portability refers to the ease with which money can be transported and used for transactions. This makes money convenient for people to carry with them and use in different locations.
Scarcity refers to the limited availability of money. This is important because it gives money value and allows it to be used as a medium of exchange.
Variability is not a desirable property for money, as it refers to the fluctuation of money's value over time. Money is most useful as a medium of exchange when it has a stable value that is widely recognized and accepted.
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five people applied for jobs at a store. only two of these people will be hired. the number of different pairs of people who could be hire is
The number of different pairs of people who could be hire will be 10.
To find the number of different pairs of people who could be hired from group of five applicants, we can use combination formula, which is:
[tex]n C r = n! / r!(n-r)![/tex]
where n is the total number of items in the set and r is the number of items being selected at a time.
In given case, 5 people are applying for the job and only 2 will be hired. So we want to find, number of different pairs of people that can be selected, which is equivalent to selecting 2 people out of a set of 5.
Using the combination formula, we have:
[tex]5 C 2 = 5! / 2!(5-2)! \\= (5 x 4 x 3) / (2 x 1) \\= 10[/tex]
Therefore, there are 10 different pairs of people that could be hired from the group of 5 applicants.
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which of the following are assumptions of the capital asset pricing model (capm)? check all that apply. all investors focus on a single holding period. investors have homogeneous expectations. investors have identical estimates of expected returns but not of variances. there are no taxes. consider the equation for the capital asset pricing model (capm):
Assumptions that are correct according to the capital asset pricing model (capm) are:
All investors focus on a single holding period.
Investors have homogeneous expectations.
Investors have identical estimates of expected returns but not of variances.
There are no taxes.
All the assumptions are correct as of the capital asset pricing model.
The Capital Asset Pricing Model (CAPM) explains the connection between systemic risk, or the overall dangers of investing, and projected return for assets, notably equities.
An investment's needed return and risk are connected linearly by this financial model. The capital asset pricing model (CAPM) is a stylized depiction of how financial markets value securities and, consequently, estimate projected returns on capital investments.
The model gives a mechanism for measuring risk and converting that risk into expectations of expected return on equity.
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suppose that nominal gdp is $1000 in 2006 and nominal gdp is $1500 in 2007. if the overall price level between 2006 and 2007, we could say that real gdp . a increased by 50%; increased. b increased by less than 50%; decreased. c increased by 50%; stayed constant. d increased by more than 50%; increased. e increased by more than 50%; stayed constant.
If the overall price level increased by 50% between 2006 and 2007, we could say that real GDP stayed constant. The correct option is c.
What is GDP?GDP is a monetary measure of the market value of all the final goods and services produced and sold in a specific period by countries. Due to its complex and subjective nature, this measure is often revised before being considered a reliable indicator. GDP per capita does not, however, reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations.
While nominal GDP is more useful comparing national economies on the international market.
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the organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time. group of answer choices false true
The statement the organization should complete low-priority projects before high-priority ones, if the low-priority ones take less time is false. If the low-priority projects require less time, the organisation should finish them before the high-priority ones.
The majority of a project's time and the expenditure are often spent on its execution. Information systems can be strategically used to help the company manufacture its products more effectively or at a lesser cost. By extending the value chain, it is now possible to create a value web that connects the organisation customers, partners in business, and suppliers.
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the primary savers of funds in the united states are question 4 options: businesses. governments. households. all of these. none of these.
In 2013, the domestic enterprises, organizations, and people in the United States saved over $1.9 trillion. What was done with the funds and where did they go? A portion of the savings was placed in banks, which then lent the funds to people or organizations seeking loans.
The price in any market is determined by what providers are paid and what buyers fork out. When it comes to financial markets, individuals who provide capital via saving anticipate obtaining a rate of return, while those who demand capital through receiving money anticipate paying a rate of return. Depending on the sort of investment, this rate of return can take many different shapes. The interest rate is the most basic illustration of a rate of return. For instance, you get interest when you deposit money into a savings account at a bank. The interest rate is the amount of interest that you receive as a percentage of your deposits. The same is true if you request a loan to purchase a car or a computer.
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we have the following accounts and balances: cash $10,000; buildings $50,000; accounts payable $5,000; owner's equity of $80,000. we also have accounts receivable with an unknown balance. what does the balance of accounts receivable need to be to get the accounting equation into balance
The balance of accounts receivable must be equal to $25,000 to bring the accounting equation into balance. Accounting helps businesses to comply with legal and regulatory requirements, track their financial performance, and make informed decisions about the allocation of resources.
Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves the systematic collection, analysis, and reporting of financial data to provide financial statements that help stakeholders understand the financial performance and position of a business.
The accounting equation states that assets must equal liabilities plus owner's equity. Therefore, the sum of all assets, including accounts receivable, must equal $135,000 ($5,000 + $80,000 + $50,000). Subtracting the known assets of $65,000 ($10,000 + $50,000) from $135,000 results in a balance of $25,000 for accounts receivable.
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Which is an advantage of investing $500 in an S&P 500 Index mutual fund instead of
in the shares of any single company's stock?
The fund offers
greater liquidity.
The fund offers
greater
diversification.
The fund will pay a
higher dividend.
The fund will
generate a better
return.
An advantage of investing $500 in an S&P 500 Index mutual fund instead of in the shares of any single company's stock is the fund offers greater diversification. Thus, the correct answer is option B.
What is mutual fund?A mutual fund is an investment fund that is professionally managed and pools money from many investors to purchase securities.
The most obvious advantage of investing in index funds is that your portfolio is instantly diversified, reducing the possibility of losing some or all of your money. Consider investing in an index fund that tracks the S&P 500. This index fund would invest in approximately 500 different stocks.
Therefore, the S&P 500 Index mutual fund offers greater diversification.
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the following information is provided for a company. accounts payable $ 16,100 buildings 81,100 cash 11,600 accounts receivable 10,600 salaries payable 5,600 retained earnings 51,900 supplies 41,100 notes payable (due in 18 months) 36,100 interest payable 4,100 common stock 36,100 what is the amount of current assets, assuming the accounts above reflect normal activity? multiple choice $144,400 $63,300 $22,200 $180,500
Current assets are a critical component of a company's balance sheet. They represent the assets that can be quickly converted into cash or used to pay off current liabilities within one year.
To calculate the amount of current assets, we need to add up all assets that can be converted into cash within a year (or operating cycle, whichever is longer).
The current assets are:
Cash: $11,600
Accounts Receivable: $10,600
Supplies: $41,100
The total amount of current assets is $11,600 + $10,600 + $41,100 = $63,300.
So, the answer is $63,300.
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on 12/31/15, hite industries reported retained earnings of $510,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. on its previous balance sheet, at 12/31/14, the company had reported $445,000 of retained earnings. no shares were repurchased during 2015. how much in dividends did the firm pay during 2015?
$445,000 (retained earnings on 12/31/14) - $510,000 (retained earnings on 12/31/15) = $65,000 in dividends paid during 2015.
To determine the amount of dividends paid by Hite Industries during 2015, we can start by calculating the company's retained earnings at the end of 2015. Retained earnings represent the portion of a company's net income that is not paid out as dividends and is instead kept in the company to be reinvested or used for other purposes.
We are given two pieces of information to help us calculate the retained earnings at the end of 2015:
The company reported retained earnings of $510,000 on its balance sheet as of December 31, 2015.
The company reported net income of $135,000 during the year.
To calculate the retained earnings at the beginning of the year, we can start with the retained earnings at the end of the year and subtract the net income:
$445,000 = $510,000 - $135,000
We now know that the company had $445,000 in retained earnings at the beginning of the year and $510,000 in retained earnings at the end of the year. The amount of dividends paid during the year can be calculated by subtracting the retained earnings at the end of the year from the retained earnings at the beginning of the year:
$65,000 = $445,000 - $510,000
So, Hite Industries paid out $65,000 in dividends during 2015. This information can be useful for shareholders who are interested in the company's dividend policy and for analysts who are evaluating the company's financial performance.
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Which aspect of Argentina's economic environment are international businesses most likely to perceive as attractive?
a. Infrastructure b. Natural resources c. Educational system d. Economic system
The World Bank is a lengthy strategic partner of Argentina and works to promote inclusive, sustainable growth as a means of assisting in the fight against poverty. Thus, option D is correct.
What is the aspect of Argentina's economic environment?Political and economic unrest have plagued Argentina for a long time, and the country experiences large growth changes annually.
The country's GDP is expected to have increased by 7.5% in 2021, primarily due to a rebound in investments and private consumption as well as the vigour of exports, which were aided by the high prices of commodities.
Therefore, Economic system is the aspect of Argentina's economic environment are international businesses most likely to perceive as attractive.
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money management involves financial activities necessary to manage current personal economic resources, while working for the achievement of long-term financial security. True/False ?
In order to manage one's current financial resources and work toward long-term financial security, one must engage in certain financial activities. True.
What does managing money accomplish?The goal of putting in place a money management program is to give you total control over your financial decisions, future savings targets, and ability to build your own lifestyle. Setting a savings plan that fits your desired lifestyle while balancing and integrating it with your longer-term financial objectives.
How do you manage your finances?Make a budget that accounts for your way of life and spending patterns. Making a budget is a great approach to promote healthier lifestyle choices, like cooking more frequently at home, but you need also give yourself a chance to follow it. This approach to money management is the only one that can be effective.
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99. agency is the act of representing someone in the purchase, sale, or lease of a property. subagency is the act of representing:
Agency is the act of representing someone in the purchase, sale, or lease of a property. Subagency is the act of representing a principal who is represented by an agent
The connection that arises when one person or party hires another to perform an action on his behalf, such as performing his work, selling his goods, or managing his business, is defined by the agency. When a real estate agent, for example, acts on behalf of a principal such as a property owner in the acquisition, sale, or lease of a property, that connection is referred to as an agency.
Whereas, when one agent employs another agent to help with the principal's representation, this is known as a subagency. The primary agent in this situation is the original agent, while the subagent represents the same principal but helps with the transaction.
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product costs include all of the following except question content area bottom part 1 a. advertising. b. cleaning products for the factory. c. direct materials used. d. assembly line workers.
A product costs include all of the following except for advertising. The Option A is correct.
What are considered as product costs in manufacturing?Product costs are the expenses incurred to create a product for sale to customers. Direct material (DM), direct labor (DL), and manufacturing overhead are all part of the product costs (MOH).
Labor, raw materials, consumable manufacturing supplies, and general overhead are all examples of production costs. Total product costs are calculated by adding the total direct material and labor costs, as well as the total manufacturing overhead costs.
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mobius, inc., has a total debt ratio of .57. what is its debt-equity ratio? what is its equity multiplier?
The debt-equity ratio is a measure of a company's financial leverage, calculated as the total debt divided by total equity.
The equity multiplier is a measure of a company's financial leverage, calculated as the total assets divided by total equity.
What is debt equity ratio?The debt-equity ratio is a financial metric that compares a company's total debt to its total equity. It is used to evaluate a company's financial leverage, or how much debt it is using to finance its operations and growth.
The debt-equity ratio is calculated by dividing the total debt of a company by its total equity.
A higher debt-equity ratio indicates that a greater portion of a company's financing is coming from debt, while a lower debt-equity ratio indicates that a greater portion is coming from equity.
The debt-equity ratio is a useful tool for investors and analysts to assess a company's financial risk and its ability to meet its financial obligations. It is important to note that the appropriate level of debt-equity ratio varies by industry and company size.
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agreement and disagreement among economists suppose that eric, an economist from a research facility in washington, and ginny, another economist from a graduate program in the northeast, are both guests on a popular science podcast. the host of the podcast is facilitating their debate over government intervention. the following dialogue represents a portion of the transcript of their discussion: ginny: the usefulness of government intervention in the economy is a long-standing issue that economists continue to debate. eric: i feel that government involvement in the economy should be reduced because government programs cause more harm than good. ginny: while i do agree that government programs can be inefficient, i really think they are necessary to help the less fortunate. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? employers should not be restricted from outsourcing work to foreign nations. business managers can raise profit more easily by reducing costs than by raising revenue. central banks should focus more on maintaining low unemployment than on maintaining low inflation.
The disagreement between Eric and Ginny is probably due to their different views on the role of government in the economy.
What is disagreement?
Disagreement is the expression of a difference of opinion or conflict of interest between two or more people. This can be between two people, two groups, or between an individual and a group. Disagreements can range from a minor disagreement to a major disagreement about an issue.Eric believes government intervention should be limited, while Ginny believes government programs are needed to help those less fortunate. Which opinion do two randomly selected economists tend to agree with? Employers should not be prevented from outsourcing work abroad.
Most economists agree that employers should not simply outsource work abroad, as doing so can often be beneficial for both companies and the economy at large.
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When private ownership of a resource is clearly defined and enforced, the private ownerSelect one:a. has little incentive to consider the wishes of others when deciding how to use the resource.b. has little incentive to take care of the resource.c. has a strong incentive to use the resource wisely and to consider seriously the wishes of others when deciding how to employ the resource. Correctd. has a strong incentive to consume the resource during the period rather than conserving it for future use.
A strong incentive to use the resource wisely and to consider seriously the wishes of others when deciding how to employ the resource.
What is private ownership?Private ownership describes the only right to manage and make use of a certain resource or object, such as real estate, structures, or individual possessions. Property rights, which are the laws defining the terms under which people and businesses can own, use, and transfer resources, safeguard private ownership, a fundamental component of market-based economies.
The private owner of a resource has an incentive to utilize it wisely, to take other people's desires into account, and to preserve the asset's worth over time when private ownership of the resource is clearly established and enforced. Private ownership can encourage investment since owners have an incentive to raise the standard of their resources and look for new growth prospects.
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