You are asked to provide two friends who are in business together with advice regarding what they need to do to legally in order to form a limited liability company. Although your friends like the general notion of limited liability in the operation of their business, they are totally unfamiliar with the legal processes for forming a LLC, so you need to provide them with the basic requirements for LLC creation. What specific advice would you give them?

Answers

Answer 1

The specific advice would you give them concerning the legal processes for forming a limited liability company is  to choose the  appropriate LLC name, noting that the name would not be the same with any existing  LLC in the state's LLC office, the get verified in the nearest office.

What is limited liability company?

A limited liability company (LLC) can be described as the business structure whereby the owners of the business is been protected  from personal responsibility with respect to the debts or liabilities.

It should be noted that when starting a LLC it is adviceable to choose a differnt name whic will be verified from the state's LLC office.

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Related Questions

In order to make medical decisions for her aunt, Kathi will need a(n).

A. power of attorney

B. will

C. trust

D. executor

Answers

B. Will in order to make madical

In order to make medical decisions for her aunt, Kathi will need a power of attorney. The correct option is (A).

What do you mean by the power of attorney?

An important legal document known as a power of attorney (POA) enables an individual to designate another person or entity to handle his or her property, medical affairs, and financial matters while he or she is away.

A medical power of attorney (POA) is a legal document that you can use to appoint a representative to make medical decisions on your behalf in the event that you are unable to do so.

If your doctor determines you are unable to make significant choices for yourself, only then can the person you select as your agent exercise the authority a medical POA grants them.

Therefore, in order to make medical decisions for her aunt, Kathi will need a power of attorney.

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Determine and explain what leadership styles you would use based on
Hersey Blanchard Situational Leadership Model S1, S2, S3, S4 to lead/manage someone
who works at a McDonalds and someone who works as a Dean at an University?

Answers

In situation 1 to lead or manage someone working in McDonalds we would you the Telling style leadership given by Henry Blanchard, which is a situation where the leader gives clear directions to the worker and supervise the work closely. It is a high task and low relationship style leadership.

In situation 2 to lead or manage someone who works as dean at a university we would apply the Delegating style, which is a situation where the leader allows the group or people under him/her to take responsibility for the task actions. It is a low task and low relationship style.

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4. Choose the best answer.
Which statistic about each school is NOT provided by the Common Data Set?
O the average debt incurred through student loans
O housing and meal plan options
O the tuition rate and test scores
O the average starting salary

Answers

the average debt incurred through student loans statistic about each school is NOT provided by the Common Data Set.

What is common data set?it is a collaborative effort among data providers in the higher education community and publishers as represented by the College Board, Peterson's, and U.S. News & World Report. The combined goal of this collaboration is to improve the quality and accuracy of information provided to all involved in a student's transition into higher education, as well as to reduce the reporting burden on data providers.It is the development of clear, standard data items and definitions in order to determine a specific cohort relevant to each item.Data items and definitions used by the U.S. Department of Education in its higher education surveys often serve as a guide in the continued development of the CDS.Common Data Set items undergo broad review by the CDS Advisory Board as well as by data providers representing secondary schools and two- and four-year colleges. Feedback from users of CDS is also considered in the annual review process.

thus, the average debt incurred through student loans statistic about each school is NOT provided by the Common Data Set.

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Match the examples with the appropriate characteristic of a successful entrepreneur. There are more terms than examples. Each term will only be used once.

Answers

Entrepreneurship is essentially the act of creating, setting up, and managing a new business in order to make money while taking on financial risk.

Option 1 - Highly energetic

Option 2 - Self nurturing

Option 3- Tolerant of uncertainty

Option 4- Self directed

Option 5 - Action oriented

Entrepreneurs with lots of energy are top performers. Even while working 18 hours a day is challenging, extremely motivated individuals can manage it. As a result, the extremely energectic characteristic is used in the first case.

When entrepreneurs renew their own joy and energies in growing their firm, they are self-nurturing or fostering self-development. Therefore, the second scenario fits the trait of self-nurturing.

Successful entrepreneurs don't worry about failing. Success is built upon failure. An entrepreneur should be mindful of many uncertainties while starting a business. The third illustration fits the trait of being tolerant of ambiguity.

Being their own boss means being self-driven. Entrepreneurs should develop their own self-awareness and self-control. The self-directed example is the fourth.

The fifth example is appropriate for action-oreinted. When we are able to act, we can make our dreams come true.

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Employees are often
more motivated
promoted
O less motivated
demoted
when they know that they will receive pay raised.

Answers

Answer:

More motivated

Explanation:

Salary raise is a way of motivation to workers.

The position of the long-run aggregate supply (lras) curve is determined by _________

Answers

The amount of capital, the availability of technology, and the number of laborers all affect where the long-run aggregate supply (lras) curve is located.

Long-run the total amount of production in an economy when all of its resources are being used is referred to as long-run aggregate supply.

In order to undertake macroeconomic analysis, economists must take into account both the short run and the long run. Some production costs and output prices are fixed in the short run. On the other hand, all production costs as well as output prices are adjustable over the long run.

The link between the overall price level and real GDP is depicted graphically by the aggregate supply curve. In the long run, all production costs and output prices are flexible, therefore the aggregate supply curve is essentially the supply curve for that time period.

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who is backing your money when you purchase a savings bond.

Answers

Answer:

the U.S. Treasury

Explanation:

The spot price of an asset is Rs. 400. Futures price is 250. Interest rate is 10% per annum. Time is 4 years. How much you should you invest today so that you earn a profit on the same day and your position in futures market is also covered after 4 years automatically?

Answers

The present value of the investment is $5846.40

How to find the present value of the annuity?

The future value of an annuity is the value of a group of recurring payments at a certain date in the future, assuming a particular rate of return.

We are to find the future value of the annuity using the figures as given, we are to find the future value of the investment

The future value P is:

P= pmt*(1+r)^(n - 1 /r)

where

p=future value

pmt=dollar amount

R=Interest rate or discount

n=number of periods in which payment will be made=400(1+0.1)*4 _1/0.1

Evaluate this means that the present value is $5846.4

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In 2021, Maria who is 66, had adjusted gross income of $32,000, paid the following medical expenses:

Answers

If Maria who is 66, had adjusted gross income of $32,000.The amount deducted as medical expenses is B. $2,400.

How to find the amount deducted as medical expenses?

First step is to calculate the total expenses

Total expenses =  Prescription medicines +  Dentist and doctor expenses +  Health insurance premiums + Two pair of eyeglasses

Total expenses =$875+ $1350 + $700+ $185

Total expense  = $3,110

Now let calculate the amount  deducted as medical expenses

Medical dues limit is :  7.5% of Adjusted gross income (AGI)

Amount  deducted as medical expenses  = 32,000 x 7.5%

Amount  deducted as medical expenses  = $2,400

Therefore the correct option is B.

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The complete question is:

in 2021, Maria who is 66, had adjusted gross income of $32,000, paid the following medical expenses. Prescription medicines $ 875 Dentist and doctor expenses 1,350 Health insurance premiums $700 Two pair of eyeglasses 185 What amount can Maria deduct as medical expenses (after the adjusted gross income limitation) in calculating her itemized deductions for 202q

Multiple Choice

$3110

$2400

$710

$0

what is the break even point?

Answers

Explanation & Answer:

To put it in simple terms, the break even point is the point at which total cost and total revenue are equivalent.

Income earned
Customer satisfaction
8. You expect that a project will bring in $25,000 USD in revenue per year. You estimate it will cost $12,000 up front.
You also estimate costs of $200 per month for the first 12 months, which equals $2,400 per year. Using the formula
(G-C) + C = ROI, how would you calculate the project's return on investment (ROI) after the first 12 months?

Answers

Estimated Gross Revenue = $25,000 USD

Estimated Upfront cost = $12,000 USD

Estimated monthly cost = $2,400 USD

Total cost = $14,400 USD

Therefore,

              ROI = ( G - C )/C

                     = ( $25,000 - $14,400 )/$14,400

                     = 0.736 * 100%

                     = 74%

ROI or Return On Investment is a instrument to measure the percentage of return on every $ investment made. A high ROI means that the return on investment is favorable compared to it's cost and it is highly advisable to investors to invest in a company with high ROI.

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Is there a need to regulate Business Activities?

Answers

Yes, regulating business activities provides rules to protect many groups. Such as employees, the work environment, the employer, what the employer is allowed to do to an extent and such. Regulating businesss set limits, preventing said business to possibly avoid forming monopolies.

Prompt: In an essay, you will choose an entrepreneur and argue whether the free enterprise system was necessary for that individual to make an impact on the business world.

PLEASE ANSWER ASAP. I am writing my essay about Rihanna. If anyone could help me, I would appreciate it. Due in 1 week.

Answers

A free enterprise system was necessary because it allows people to do what they do best while trading for the rest, of free enterprise, works. Competition is a driving force behind the free enterprise, resulting in increased efficiency and lower consumer prices.

What is the advantage of free enterprises?

The benefits of the US Free Enterprise System to producers and consumers include the freedom to own private property, producers producing at their own profit, consumers and producers having control over themselves, increased efficiency, and adequate use of available resources.

A free enterprise system allows individuals to make their own economic decisions without being constrained by the government. It enables consumer supply and demand to determine the success or failure of an economic venture.

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WACC ?

Debt: 9,700 7.2 percent coupon bonds outstanding, with 23 years to maturity and a quoted price of 105.75. These bonds have a par value of $1,000 and pay interest semiannually.
Common stock: 260,000 shares of common stock selling for $65.20 per share. The stock has a beta of .97 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 5.2 percent per year indefinitely.
Preferred stock: 8,700 shares of 4.60 percent preferred stock selling at $94.70 per share.
Market: 11.3 percent expected return, a risk-free rate of 3.95 percent, and a 22 percent tax rate.
What is the company's WACC?

Answers

The company's WACC, given the risk free rate, the common stock, the debt, and the preferred stock is 8.56%.

How to find the company WACC?

The WACC stands for the Weighted Average Cost of Capital and is calculated by multiplying the weight of a source of funding, by the cost of that source of funding, and then adding the results together.

The formula for the Weighted Average Cost of Capital is therefore:
= (Weight of debt x After tax cost of debt) + ( Weight of Common stock x Cost of common stock) + (Weight of preferred stock x Cost of preferred stock)

Debt = $10,257, 750

Common stock = $16,952,000

Preferred stock = $ 823, 890

The total capital for the company is therefore:

= 10,257, 750 + 16,952,000 + 823, 890

= $28,033,640

The WACC is therefore:

= (10,257, 750 / 28,033,640 x 5.23%) +  (16,952,000 / 28,033,640 x 10.75%) +  (823, 890 / 28,033,640 x 4.86%)

= 8.56%

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1. Discuss the FIVE (5) responses of the price elasticity of demand. (5M) ​

Answers

Answer:

Perfectly elastic, perfectly inelastic, relatively elastic, relatively inelastic, and unitary elastic demand.

Explanation:

The FIVE (5) responses to the price elasticity of demand are:

1. Perfectly Elastic Demand:

When a small change in the price of a product causes a major change in its demand, it is said to be perfectly elastic demand.

2. Perfectly Inelastic Demand:

A perfectly inelastic demand is one when there is no change produced in the demand for a product with a change in its price.

3. Relatively Elastic Demand:

Relatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in the price of a product.

4. Relatively Inelastic Demand:

Relatively inelastic demand is one when the percentage change produced in demand is less than the percentage change in the price of a product. price of a product.

5. Unitary Elastic Demand:

When the proportionate change in demand produces the same change in the price of the product, the demand is referred as unitary elastic demand.

A 90-day, 10% note for $9,000, dated april 15, is received from a customer on account. the face value of the note is?

a. $9,000.
b. $9,900.
c. $9,225.
d. $8,100.

Answers

The face value of a 90-day 10% note for

$9,000, dated April 15 is $9,000.

Bonds often have a face value that

corresponds to their principal or redemption

value. A percentage of face value is used to

calculate interest payments. Depending on

the interest rate payable and the perceived

risk of default, a bond's true value before to

maturity may be larger or lower than its face

value. Bonds' actual value approaches face

value as they get closer to maturity.The per value of the stock is the face value in the case of stock certificates. The per value of the common stock is primarily symbolic. Dividends on preferred stock can be calculated as a percentage of par value.

The death benefit of a life insurance policy

is its face value. In the event that a life

insurance policy has "double indemnity," the

recipient receives double the face value in

case of accidental death.

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the notarial evidence form is completed by:_____.
a. The Notary Signing Agent and returned to the contracting company
b. The closing agent and also kept by the closing agent
c. The closing agent but kept by the Notary Signing Agent
d. The borrower and kept by the Notary Signing Agent as a record

Answers

Answer:

A.....While the Notarial Evidence Form is created by the Specialist, it is then returned to the lender or closing agent along with the signed documents. Lenders rely on the form to comply with government or meet their own business practices.

The Notary Signing Agent completes the notarial evidence form and returns it to the contracting business. Thus, the right option is (a.) The Notary Signing Agent returned to the contracting company.

What is notarial evidence?

The Notarial Evidence Form is a business record of all notarizations conducted in the course of a loan or real estate transaction (see the Definitions). It is not the same as keeping a journal.

The acknowledgment (when a signer is positively identified by the Notary and acknowledges signing a document in the Notary's presence) and the jurat (when the signer swears or affirms before the Notary that the contents of a document signed in the Notary's presence are true) are the two most common notarial acts.

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from the chart above, decision makers should pay attention to month?

Answers

From the chart above, decision makers should pay attention to the month of September.

Decision makers are the person or a group of individuals who are said to be responsible for making strategically important decisions which are mainly based on a number of variables, including resources available, time constraints, the amount and type of information available and also the number of stakeholders involved.

So, here in the given chart, the decision makers should pay attention to the month of September. As, in the month of September, the monthly cash flow and cash balance tend to decrease a lot.

Hence, a decision maker is said to make challenging decisions.

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What is not a factor of determining your auto insurance premium?
Responses
credit rating
safety features
location of where you live and work
none of the above

Answers

Answer:

none of the above

Explanation:

i took the test

Answer:

location of where you live and work

Explanation:

What is a bill in business studies​

Answers

A bill is a document outlining the amount a customer owes for goods received or services rendered and is printed or written out as a statement of the charges.
the amount a costumer has to pay for the good or service provided

You just purchased some Treasury bonds that were quoted at 101:12. What is the market price of your bonds if you purchased $900 in terms of face value?

Market price = $


$220,000 worth of Treasury bonds has a bid price quote of 109:17 and an asked quote of 109:18. In dollars, what is the value of the bid-ask spread on this bond?

Responses
$687.50
$22.00
$68.75
$220.00

Answers

1. The market price of your bonds if you purchased $900 in terms of face value is $910.08.

2. In dollars, the value of the bid-ask spread on this bond is B. $22.00.

What is the bid-ask spread?

The bid-ask spread is the percentage difference between the bid price and the ask price of a security.

The ask price is the lowest price the security seller will be willing to sell.  On the other hand, the bid price is the highest price that the buyer is willing to buy the security.

Face value of bonds = $900

Quoted rate = 101.12

Market price = $910.08 ($900 x 1.0112)

The worth of Treasury bonds = $220,000

Bid price quote = 109:17

Asked quote = 109:18

Bid-ask spread = 0:01% (109:18 - 109:17)

Value of the bid-ask spread = $22.00 ($220,000 x 0.01%)

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How does fiscal policy affect the budget deficit?

Answers

Answer: An expansionary fiscal policy leads to higher budget deficits while a contractionary policy reduces deficits.

Explanation:

Fiscal policy refers to the use of the government budget to affect the economy.

The policy is said to be expansionary when the government spends more on budget items such as infrastructure or when taxes are lowered. Such policies are typically used to boost productivity and the economy. Conversely, the policy is contractionary when government spending decreases or taxes rise. Contractionary policies might be used to combat rising inflation.
Generally, expansionary policy leads to higher budget deficits, and contractionary policy reduces deficits.

A deficit can be reduced by using fiscal policy to encourage economic expansion in order to raise tax income and cut spending.

What is fiscal policy?A fiscal policy is one in which the government use taxation, public expenditure, and public borrowing as tools to accomplish specific economic policy goals. In a nutshell, it is the practise of using taxes and expenditure by the government to generate sustainable growth.Budget deficits increase when fiscal policy is expansionary, while deficits decrease when fiscal policy is contractionary. The use of the government budget to influence the economy is referred to as fiscal policy.When the government spends more on budget items like infrastructure or when taxes are decreased, the policy is said to be expansionary. Such measures are frequently employed to strengthen the economy and productivity. In contrast, the policy is contractionary when spending by the government falls or when taxes rise. Inflation may be fought through contractionary policies.

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Is it possible to put money into circulation less than the value of the economy's goods and services because money has a high value? true or false, explain why.

Answers

The statement that it is possible to put money into circulation less than the value of the economy's goods and services because money has a high value is True because the higher currency would reduce prices.

What happens when there is little money in circulation?

It is possible that the amount of money in circulation is less than the value of the goods and services in a country and when that happens, the result would be that the value of the currency would have a high value.

As a result, less currency would be needed for buying goods and services which means that prices would decrease as a result. This is therefore sometimes done by the government to combat inflation.

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The following table shows the production within a very small country’s economy in two consecutive years. What was the real GDP of 2017?

Year Item Quantity Produced Price Per Unit
2017 Oranges 1000 pounds $1.00
2017 Haircuts 2000 haircuts $5.00
2018 Oranges 1500 pounds $1.50
2018 Haircuts 3000 haircuts $7.50

Answers

Real GDP in 2017 is $16500


Expenditure in base 2017 =
                    price        Quantity      Expenditure
Oranges=      $1              1000            1000
Haircut          $5             2000           10000
Total                                                   11000

Expenditure in 2018
                  price         Quantity        Expenditure    Real GDP
Oranges      $1.5             1500            2250               1500
haircut         $7.5            3000          22500             15000
Total                                                   24750             16500          

Nominal GDP: the value of final goods and services at current prices ( Price in current year x quantity in current year)      

Real GDP: The value of final goods and services at base year prices. (Price in base year x quantity in currently year)                  

Real GDP in 2018 with 2017 as base year is $16,500.    

Nominal GDP- GDP in nominal terms is GDP expressed in current prices, without inflation adjustment. GDP is estimated at current prices by expressing the values of all goods and services produced during the current reporting period.
Real GDP- Real GDP is a macroeconomic measure of the value of economic output after adjusting for price changes. This adjustment converts nominal GDP, a money-value measure, into an index of total output quantity.

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16. The following actions could help to improve energy usage in an organisation: (Please tick the correct answers) 1. Use energy-efficient building materials for future projects, e.g. double glazing, better insulation, and natural sources for heating, cooling, lighting and airflow. 2. Encourage carpooling, public transport and riding or walking to work. 3. Increase ambient temperature in winter and decrease in summer, e.g. set air conditioning to 18°C instead of 22°C in summer. 4. Extend maintenance intervals. 5. Choose energy-efficient vehicles. 6. Establish a carbon offset program for travel or other activities.​

Answers

Buildings account for 33% of greenhouse gas emissions and 40% of world energy demand. Our attempts to combat climate change will be largely dependent on how sustainable and energy-efficient new construction is.

Additionally, green buildings may benefit investors, businesses, and employees. These actions contribute to greater energy efficiency, lower pollution levels, and even fewer automobiles on the road. Carpooling has been shown in several studies to lower carbon dioxide emissions.

The tilt of the Earth's axis is the key factor. Many people think that the Earth's proximity to the sun during the summer and its distance during the winter is what causes temperature fluctuations. In actuality, the distance between the Earth and the sun is greatest in July and greatest in January.

Regular maintenance programs frequently start on predetermined time- and mileage-based intervals. By averting more significant and expensive problems, the goal of changing components and fluids on a regular maintenance plan is to save money over time.

With a rated energy consumption of 25 kWh per 100 miles, the rear-wheel-drive, standard-range Tesla Model 3 small car will be the most effective EV in 2022.

By funding carbon reduction initiatives, people or organizations, in this example airline passengers and business clients, can "neutralize" their share of an aircraft's carbon emissions for a certain flight.

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on receiving a client bank cutoff statement, an auditor most likely would trace:_____.
a. Prior-year checks listed in the cutoff statement to the year-end outstanding checklist.
b. Deposits recorded in the cash receipts journal after year-end to the cutoff statement.
c. Checks dated after year-end listed in the cutoff statement to the year-end outstanding checklist.
d. Deposits in transit listed in the cutoff statement to the year-end bank reconciliation.

Answers

On receiving a client bank cutoff statement, an auditor most likely would trace Prior-year checks listed in the cutoff statement to the year-end outstanding checklist.

An auditor is a person who has the authority to check and verify the accuracy of financial records and ensure that a business complies with tax laws.

A chartered accountant is a person or company hired by a company to conduct an audit. To act as an auditor, you must be licensed by accounting and auditing regulators or have specific qualifications. The auditor is responsible for planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatement.

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Find the following values.
a. An initial $500 compounded for 10 years at 6%
b. An initial $500 compounded for 10 years at 12%
c. The present value of $500 due in 10 years at 6%
d. The present value of $1,552.90 due in 10 years at 12% and at 6%
e. Define present value and illustrate it using a time line with data from Part d. How are present values affected by interest rates?

Answers

a. An initial $500 compound-ed for 10 ye-ars at 6%.

PV= $500

I=6%

N= 10

FV=?

PMT= 0

FV = PV(1+i)^n

500(1.06)^10= $895.45

b. An initial $500 comp-ounded 10 years at 12%.

I= 12%

N= 10

PMT= 0

PV= -500

FV= ?

FV = PV(1+i)^n

500(1.12)^10= $1552.92

c. The pre-sent va lue of $500 due in 10 yea-rs at 6%

I= 6%

N= 10

PMT=0

PV=?

FV=500

PV = FV/(1+i)^n

PV = $500 / (1.06)^10

= $279

d. The pre-sent value $1,552.90 due in 10 ye-ars at %12 and at %6

I= 12% and 6%

N= 10

PMT= 0

PV= ?

FV= $1,552.90

PV = FV/(1+i)^n

PV = $1,552.90 / (1.12)^10

= $499.99

PV = $1,552.90 / (1.06)^10

= $867.13

e. Present Value

Present Value is today's value of mo-ney received at some point in the future discount-ed at current int-erest rates.

How are present values affect-ed by int-erest rates? The pre-sent value gets small-er as you incr-ease the disco-unt rate.

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I have a project to boost a bank's return on assets in Japan with a sustainability goal, so my plan is to develop a child care plan (to boost the population in Japan). My idea is to make it easier for people who have children or families that want to have children to get a loan for child care (daily necessities, etc.) with a long-term payment (10 years?). But what I'm asking is, "How can we make sure that the client pays their long-term loans?" Are there any strategies? And how can I increase the ROA of the bank by doing this?

Answers

To make sure th-at the client pays their long-term loans  by mak-ing Equated Monthly Installments (EMIs) over an ag-reed period of time with the bank. The install-ments are made up of two ele-ments – principal amount and the interest.

A long-term loan is a lo-an from a bank for a spe-cific amount that has a specified re-payment schedule and a fixed or floating inter-est rate.

Return on Asset (ROA)- After Tax

Return on Assets (ROA) is a profit-ability ratio which indi-cates the net profit (net income) gener-ated on total assets. It is compu-ted by dividing net income by ave-rage total assets. Formula- (Profit after tax/Av. Total assets)*100.

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1. Describe the fundamental similarities and differences between procurement, manufacturing support and customer-accommodation performance cycles as they relate to logistical control.

Answers

1. Procurement - Buying raw materials at the best price to maximize cost-benefit.

2. Production Support - Requirement analysis, raw material delivery, etc. enhance the manufacturing process. Manufacturing assistance.

3. Market distribution performance cycle - Manages product distribution in the market.

What are the similarities and differences between procurement, manufacturing support, and customer-accommodation performance cycles?

Generally, The supply chain process is connected to all aspects of business operations, including procurement, production support, and the performance cycle of market distribution. These are related to one another in a few key respects. They are distinct from one another in the following ways:

1. Procurement is the process of acquiring raw materials at the lowest possible cost while maintaining the highest possible level of operational efficiency.

2. Manufacturing Support - The manufacturing process is helped along by several linked operations such as need analysis, the delivery of raw materials, and so on. The term for this kind of assistance is manufacturing support.

3. The Market Distribution Performance Cycle: It is the Management of the Complete Process of Product Distribution in the Market This cycle is the management of the entire process of product distribution in the market.

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Explain the following concepts and state their importance and implications:
scarcity
scale of preference
choice
opportunity cost ​

Answers

Scarcity: means limitation of the avail-ability of reso-urces in relat-ion to their wants. That means the avail-able resources are not eno-ugh to comp-letely satisfy all the wa-nts.

A scale of preference: is a list of goods and services (for exam-ple, shoes, socks, bo-oks, hair-cut, and so on) pre-pared for pur-chase in order of priority. It is a prior-ity rating of all indivi-dual wants, according to their import-ance in one's valuation and the means to achi-eve or obtain them.

Choice: refers to the ab-ility of a consumer or prod-ucer to decide which good, service or re-source to purchase or pro-vide from a range of poss-ible options. Being free to chose is regard-ed as a funda-mental indicator of economic well being and develop-ment.

Opportunity cost: is the va-lue of the best alternative for-gone in making any choice.

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