What does CAPX mean, and why is it a firm's engine of growth?
What will be an ideal response?
CAPX is an acronym that is short for capital expenditures. These are investments that the firm is making in physical plant and equipment that will produce output in the future. Consequently, if the firm wants to grow, it will have to do CAPX, and in this sense, CAPX is the firm's engine of growth.
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Profit maximization objectives lead to high prices and monopolies and are generally not in the public interest.
Answer the following statement true (T) or false (F)
Quotas are not permitted under GATT or under U.S. law as a method of protecting domestic industries, unless a trade compensation is provided as a form of compensation
Indicate whether the statement is true or false
SONET/SDH signal payload speeds range:
A. from 902 Mbps to 1.53 Gbps B. from 1.8 Mbps to 2.4 Gbps C. from 50 Mbps to 1.53 Gbps D. from 1.80 Mbps to 153 Gbps
Boris owns 60 of the 100 shares outstanding of Bread Corporation stock and 80 of the 100 shares of Butter Corporation stock. His basis in the Bread shares is $10,000 and his basis in his Butter shares is $5,000. Boris sells 30 of his Bread Corporation shares to Butter Corporation for $25,000. Bread Corporation has E&P of $20,000 and Butter Corporation has E&P of $40,000. In applying the
substantially disproportionate test to determine if this is a sale or a dividend, Boris is treated as owning how many shares of Bread after the sale? A) 30 shares B) 54 shares C) 60 shares D) 80 shares