Which of the following creates an unfavorable environment for innovations and entrepreneurship?
A. Market economy
B. Economic freedom
C. State monopoly in production
D. Privatization
E. Strong legal protection of property rights
C
In a planned economy, the state owns all means of production. Consequently, entrepreneurial individuals have few economic incentives to develop valuable new innovations, because it is the state, rather than the individual, that captures most of the gains.
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Express Airlines is considering the purchase of an aircraft to supplement its current fleet
In estimating the impact of adding this aircraft to the fleet, management has developed the following expected cash flows: Year Cash Flow 1 -$1,000 2 $100,000 3 $100,000 4 $100,000 5 $100,000 6 $100,000 7 -$300,000 If the discount rate is 10%, what is the present value of these estimated flows? (Round to the nearest whole dollar) A) $379,080 B) $224,211 C) $189,760 D) $154,869 E) $199,000
Which of the following is a key control regarding the minimization of system downtime?
A) fault tolerance B) disaster recovery plans C) backup procedures D) all of the above